KR vs. YUM, CPNG, FAST, JD, DG, TSCO, AZO, EBAY, DLTR, and QSR
Should you be buying Kroger stock or one of its competitors? The main competitors of Kroger include Yum! Brands (YUM), Coupang (CPNG), Fastenal (FAST), JD.com (JD), Dollar General (DG), Tractor Supply (TSCO), AutoZone (AZO), eBay (EBAY), Dollar Tree (DLTR), and Restaurant Brands International (QSR). These companies are all part of the "retail/wholesale" sector.
Yum! Brands (NYSE:YUM) and Kroger (NYSE:KR) are both large-cap retail/wholesale companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, media sentiment, community ranking, earnings, institutional ownership, profitability, risk, dividends and analyst recommendations.
In the previous week, Yum! Brands had 7 more articles in the media than Kroger. MarketBeat recorded 42 mentions for Yum! Brands and 35 mentions for Kroger. Yum! Brands' average media sentiment score of 0.23 beat Kroger's score of 0.23 indicating that Kroger is being referred to more favorably in the news media.
Yum! Brands has a net margin of 22.57% compared to Yum! Brands' net margin of 1.44%. Yum! Brands' return on equity of 31.44% beat Kroger's return on equity.
Yum! Brands has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500. Comparatively, Kroger has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500.
Yum! Brands presently has a consensus price target of $144.75, indicating a potential upside of 6.96%. Kroger has a consensus price target of $55.17, indicating a potential upside of 0.58%. Given Kroger's higher possible upside, research analysts clearly believe Yum! Brands is more favorable than Kroger.
Kroger received 29 more outperform votes than Yum! Brands when rated by MarketBeat users. However, 65.30% of users gave Yum! Brands an outperform vote while only 65.04% of users gave Kroger an outperform vote.
Yum! Brands pays an annual dividend of $2.68 per share and has a dividend yield of 2.0%. Kroger pays an annual dividend of $1.16 per share and has a dividend yield of 2.1%. Yum! Brands pays out 47.9% of its earnings in the form of a dividend. Kroger pays out 39.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Yum! Brands has increased its dividend for 7 consecutive years and Kroger has increased its dividend for 18 consecutive years. Kroger is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
82.4% of Yum! Brands shares are owned by institutional investors. Comparatively, 80.9% of Kroger shares are owned by institutional investors. 0.3% of Yum! Brands shares are owned by insiders. Comparatively, 1.4% of Kroger shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Kroger has higher revenue and earnings than Yum! Brands. Kroger is trading at a lower price-to-earnings ratio than Yum! Brands, indicating that it is currently the more affordable of the two stocks.
Summary
Yum! Brands beats Kroger on 11 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding KR and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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