Head-To-Head Comparison: Delhaize Group (DEG) and SuperValu (SVU)

Delhaize Group (NYSE: DEG) and SuperValu (NYSE:SVU) are both non-cyclical consumer goods & services companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, profitability, dividends, institutional ownership, valuation, analyst recommendations and earnings.

Profitability

This table compares Delhaize Group and SuperValu’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Delhaize Group 1.77% 7.11% 3.43%
SuperValu 4.08% 41.33% 2.32%

Earnings & Valuation

This table compares Delhaize Group and SuperValu’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Delhaize Group N/A N/A N/A $1.17 24.03
SuperValu $12.48 billion 0.06 $650.00 million $14.54 1.35

SuperValu has higher revenue and earnings than Delhaize Group. SuperValu is trading at a lower price-to-earnings ratio than Delhaize Group, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

83.3% of SuperValu shares are owned by institutional investors. 1.7% of SuperValu shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

Delhaize Group pays an annual dividend of $0.35 per share and has a dividend yield of 1.2%. SuperValu does not pay a dividend. Delhaize Group pays out 29.9% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Delhaize Group and SuperValu, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Delhaize Group 0 0 0 0 N/A
SuperValu 1 6 2 0 2.11

SuperValu has a consensus target price of $26.29, suggesting a potential upside of 33.50%. Given SuperValu’s higher probable upside, analysts clearly believe SuperValu is more favorable than Delhaize Group.

Summary

SuperValu beats Delhaize Group on 9 of the 11 factors compared between the two stocks.

About Delhaize Group

Delhaize le Lion de Leeuw BV (Belgium Branch), formerly Delhaize Group SA, is a Belgium-based food retailer. The Company operates through three segments: the United States, including Food Lion and Hannaford banners; Belgium, including Delhaize Le Lion and AD Delhaize banners, and Southeastern Europe (SEE), including Alfa Beta, Mega Image and Shop&Go banners. The Company is principally engaged in the operation of food supermarkets through Company-operated, affiliated and franchised stores. Affiliated stores are with its banners that are operated by independent third parties to whom the Company sells its products at wholesale prices. Its store network also includes other store formats, such as proximity, cash and carry, and specialty stores. The Company has stores located in the United States (Northeast, Southeast and Mid-Atlantic), Belgium, Luxembourg, Greece, Serbia, Romania and Indonesia. The Company operates over 3,510 stores.

About SuperValu

Supervalu Inc. is a wholesale distributor to independent retail customers across the United States. The Company’s segments include Wholesale and Retail. The Company offers a range of advertised brand name and private-label products, including grocery (both perishable and nonperishable), general merchandise and home, health and beauty care, and pharmacy, which are sold through Company-operated and licensed Retail stores to shoppers and through its Wholesale segment to independent retail customers. The Company’s Wholesale segment provides wholesale distribution of products to independent retail customers. Wholesale is organized and operated through two geographic regions: East and West. As of February 27, 2016, the Company conducted its Retail operations through a total of 200 stores primarily organized under five regionally-based retail banners of Cub Foods, Shoppers Food & Pharmacy, Shop ‘n Save, Farm Fresh and Hornbacher’s, as well as two Rainbow and two County Market stores.

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