Kroger (NYSE:KR – Get Free Report) and Axfood AB (publ) (OTCMKTS:AXFOF – Get Free Report) are both retail/wholesale companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, risk, earnings, dividends, analyst recommendations, institutional ownership and valuation.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Kroger and Axfood AB (publ), as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Kroger | 1 | 8 | 7 | 0 | 2.38 |
| Axfood AB (publ) | 1 | 0 | 1 | 0 | 2.00 |
Kroger presently has a consensus price target of $52.31, suggesting a potential upside of 14.57%. Given Kroger’s stronger consensus rating and higher possible upside, research analysts plainly believe Kroger is more favorable than Axfood AB (publ).
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Kroger | 1.10% | 30.61% | 6.34% |
| Axfood AB (publ) | N/A | N/A | N/A |
Insider and Institutional Ownership
79.0% of Kroger shares are owned by institutional investors. Comparatively, 13.8% of Axfood AB (publ) shares are owned by institutional investors. 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 will outperform the market over the long term.
Dividends
Kroger pays an annual dividend of $1.16 per share and has a dividend yield of 2.5%. Axfood AB (publ) pays an annual dividend of $15.00 per share and has a dividend yield of 54.3%. Kroger pays out 51.8% of its earnings in the form of a dividend. Axfood AB (publ) pays out 73.4% 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. Kroger has increased its dividend for 17 consecutive years.
Earnings and Valuation
This table compares Kroger and Axfood AB (publ)’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Kroger | $148.26 billion | 0.22 | $2.24 billion | $2.24 | 20.38 |
| Axfood AB (publ) | N/A | N/A | N/A | $20.44 | 1.35 |
Kroger has higher revenue and earnings than Axfood AB (publ). Axfood AB (publ) is trading at a lower price-to-earnings ratio than Kroger, indicating that it is currently the more affordable of the two stocks.
Summary
Kroger beats Axfood AB (publ) on 12 of the 14 factors compared between the two stocks.
About Kroger
The Kroger Co. operates as a food and drug retailer in the United States. The company operates combination food and drug stores, multi-department stores, marketplace stores, and price impact warehouses. Its combination food and drug stores offer natural food and organic sections, pharmacies, general merchandise, pet centers, fresh seafood, and organic produce; and multi-department stores provide apparel, home fashion and furnishings, outdoor living, electronics, automotive products, and toys. The company's marketplace stores offer full-service grocery, pharmacy, health and beauty care, and perishable goods, as well as general merchandise, including apparel, home goods, and toys; and price impact warehouse stores provide grocery, and health and beauty care items, as well as meat, dairy, baked goods, and fresh produce items. It also manufactures and processes food products for sale in its supermarkets and online; and sells fuel through fuel centers. The Kroger Co. was founded in 1883 and is based in Cincinnati, Ohio.
About Axfood AB (publ)
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Axfood AB (publ) engages in the food retail and wholesale businesses in Sweden. It operates through Willys, Hemköp, Dagab, and Snabbgross segments. The company sells groceries through Willys, Hemköp, Eurocash, and Mat.se store chains. It is also involved in the e-commerce business; and provision of private label products. In addition, it offers home delivery of meal kits under the Middagsfrid name, as well as operates Urban Deli, a combination of restaurant and market hall; and Apohem, an online pharmacy. The company serves restaurants, fastfood operators, and cafés; and retailer-owned stores, mini-marts, service stations, and other convenience retailers. Axfood AB (publ) was founded in 1958 and is headquartered in Stockholm, Sweden. Axfood AB (publ) is a subsidiary of Axel Johnson AB.
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