Arko (NASDAQ:ARKO – Get Free Report) and Koninklijke Ahold Delhaize (OTCMKTS:AHODF – Get Free Report) are both consumer staples companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.
Institutional & Insider Ownership
75.0% of Arko shares are owned by institutional investors. Comparatively, 29.4% of Koninklijke Ahold Delhaize shares are owned by institutional investors. 32.2% of Arko shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Arko and Koninklijke Ahold Delhaize’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Arko | $9.19 billion | 0.10 | $71.75 million | $0.34 | 23.24 |
| Koninklijke Ahold Delhaize | N/A | N/A | N/A | C$0.66 | 45.57 |
Dividends
Arko pays an annual dividend of $0.12 per share and has a dividend yield of 1.5%. Koninklijke Ahold Delhaize pays an annual dividend of C$0.40 per share and has a dividend yield of 1.3%. Arko pays out 35.3% of its earnings in the form of a dividend. Koninklijke Ahold Delhaize pays out 60.1% 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. Arko is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Ratings
This is a summary of current recommendations for Arko and Koninklijke Ahold Delhaize, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Arko | 0 | 1 | 2 | 0 | 2.67 |
| Koninklijke Ahold Delhaize | 0 | 2 | 2 | 0 | 2.50 |
Arko currently has a consensus target price of $9.75, indicating a potential upside of 23.42%. Given Arko’s stronger consensus rating and higher possible upside, equities analysts clearly believe Arko is more favorable than Koninklijke Ahold Delhaize.
Profitability
This table compares Arko and Koninklijke Ahold Delhaize’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Arko | 0.54% | 17.98% | 1.46% |
| Koninklijke Ahold Delhaize | N/A | N/A | N/A |
Summary
Arko beats Koninklijke Ahold Delhaize on 10 of the 12 factors compared between the two stocks.
About Arko
Arko Corp. operates convenience stores in the United States. It operates through Retail, Wholesale, Fleet Fueling, and GPM Petroleum segments. The Retail segment engages in the sale of fuel and merchandise to retail consumers. Its Wholesale segment supplies fuel to third-party dealers and consignment agents. The Fleet Fueling segment supplies fuel to proprietary and third-party cardlock, and issuance of proprietary fuel cards. Its GPM Petroleum segment supplies fuel to retail and wholesale segments. The company is based in Richmond, Virginia.
About Koninklijke Ahold Delhaize
Koninklijke Ahold Delhaize N.V. operates retail food stores and e-commerce primarily in the United States and Europe. The company's stores offer produce, dairy, meat, deli, bakery, seafood, and frozen products; grocery, dairy, and beer and wine; floral, pet food, health and beauty care, kitchen and cookware, gardening tools, general merchandise articles, electronics, newspapers and magazines, tobacco, etc.; gasoline; and pharmacy products. It operates its supermarkets, convenience stores, and online stores under the Food Lion, Stop & Shop, The GIANT Company, Hannaford, Giant Food, FreshDirect, Albert Heijn, bol.com, Etos, Gall & Gall, Delhaize, Albert, Alfa Beta Vassilopoulos, Mega Image, and Delhaize Serbia brands. The company was formerly known as Koninklijke Ahold N.V. and changed its name to Koninklijke Ahold Delhaize N.V. in July 2016. Koninklijke Ahold Delhaize N.V. was founded in 1867 and is headquartered in Zaandam, the Netherlands.
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