Analyzing Koninklijke Ahold Delhaize (OTCMKTS:AHODF) & Alimentation Couche-Tard (OTCMKTS:ANCTF)

Koninklijke Ahold Delhaize (OTCMKTS:AHODF – Get Rating) and Alimentation Couche-Tard (OTCMKTS:ANCTF – Get Rating) are both consumer defensive companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, risk and dividends.

Profitability

This table compares Koninklijke Ahold Delhaize and Alimentation Couche-Tard’s net margins, return on equity and return on assets.

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Dividends

Koninklijke Ahold Delhaize pays an annual dividend of C$0.40 per share and has a dividend yield of 1.1%. Alimentation Couche-Tard pays an annual dividend of $0.41 per share and has a dividend yield of 0.8%. Koninklijke Ahold Delhaize pays out 60.1% of its earnings in the form of a dividend. Alimentation Couche-Tard pays out 26.4% 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.

Insider and Institutional Ownership

29.4% of Koninklijke Ahold Delhaize shares are held by institutional investors. Comparatively, 6.7% of Alimentation Couche-Tard shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Koninklijke Ahold Delhaize and Alimentation Couche-Tard, as provided by MarketBeat.

Koninklijke Ahold Delhaize presently has a consensus price target of C$31.10, indicating a potential downside of 10.79%. Alimentation Couche-Tard has a consensus price target of $72.80, indicating a potential upside of 46.57%. Given Alimentation Couche-Tard’s stronger consensus rating and higher probable upside, analysts clearly believe Alimentation Couche-Tard is more favorable than Koninklijke Ahold Delhaize.

Valuation and Earnings

This table compares Koninklijke Ahold Delhaize and Alimentation Couche-Tard’s gross revenue, earnings per share (EPS) and valuation.

Alimentation Couche-Tard is trading at a lower price-to-earnings ratio than Koninklijke Ahold Delhaize, indicating that it is currently the more affordable of the two stocks.

Summary

Alimentation Couche-Tard beats Koninklijke Ahold Delhaize on 5 of the 8 factors compared between the two stocks.

About Koninklijke Ahold Delhaize

(Get Rating)

Koninklijke Ahold Delhaize NV engages in the management and operation of supermarkets and e-commerce business. It operates through the following segments: The U.S., Europe, Other Retail, and Global Support Office. The U.S. segment includes Stop & Shop, Food Lion, Giant & Martin’s, Hannaford, Giant Food and Peapod. The Europe segment is consisted of Albert Heijn, Etos, Gall & Gall, bol.com, Delhaize operations in Belgium and Luxembourg.The Other Retail segment handles the firm’s joint ventures. The Global Support Office segment represents global support office operations in the Netherlands, Belgium, Switzerland, and the United States. The company was founded in 1887 and is headquartered in Zaandam, the Netherlands.

About Alimentation Couche-Tard

(Get Rating)

Alimentation Couche-Tard, Inc. engages in the operation of independent convenience stores. It sells goods for immediate consumption, road transportation fuel, and other products mainly through company-operated stores and franchises stores. It operates under Circle K, Ingo, Couche-Tara brands. The company was founded by Alain Bouchard, Jacques D’Amours, Richard Fortin, and Réal Plourde in 1980 and is headquartered in Laval, Canada.

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