Analyzing Weis Markets (NYSE:WMK) and Grocery Outlet (NYSE:GO)

Weis Markets (NYSE:WMK) and Grocery Outlet (NYSE:GO) are both retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, earnings, profitability, risk, analyst recommendations and dividends.

Profitability

This table compares Weis Markets and Grocery Outlet’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Weis Markets 1.76% 6.05% 4.10%
Grocery Outlet N/A N/A N/A

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Weis Markets and Grocery Outlet, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Weis Markets 0 0 0 0 N/A
Grocery Outlet 0 5 4 0 2.44

Grocery Outlet has a consensus target price of $36.75, indicating a potential downside of 2.88%. Given Grocery Outlet’s higher possible upside, analysts clearly believe Grocery Outlet is more favorable than Weis Markets.

Institutional & Insider Ownership

38.3% of Weis Markets shares are owned by institutional investors. 27.0% of Weis Markets shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Weis Markets and Grocery Outlet’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Weis Markets $3.51 billion 0.30 $62.74 million N/A N/A
Grocery Outlet N/A N/A N/A N/A N/A

Weis Markets has higher revenue and earnings than Grocery Outlet.

Dividends

Weis Markets pays an annual dividend of $1.24 per share and has a dividend yield of 3.2%. Grocery Outlet does not pay a dividend.

Summary

Weis Markets beats Grocery Outlet on 7 of the 9 factors compared between the two stocks.

Weis Markets Company Profile

Weis Markets, Inc. engages in the retail sale of food in Pennsylvania and surrounding states. The company's retail food stores sell groceries, dairy products, frozen foods, meats, seafood, fresh produce, floral, pharmacy services, deli products, prepared foods, bakery products, beer and wine, and fuel; and general merchandise items, such as health and beauty care, and household products. It operates stores primarily under the Weis Markets trade name, as well as trademarks for its product lines and promotions, such as Weis, Weis 2 Go, Weis Wonder Chicken, Weis Great Meals Start Here, Weis Gas-n-Go, and Weis Nutri-Facts. As of March 13, 2018, the company operated 205 retail food stores in Pennsylvania, Maryland, Delaware, New Jersey, New York, Virginia, and West Virginia. Weis Markets, Inc. was founded in 1912 and is based in Sunbury, Pennsylvania.

Grocery Outlet Company Profile

Grocery Outlet Holding Corp. owns and operates a chain of grocery stores in the United States. The company offers products in various categories, such as grocery, dairy and deli, produce, refrigerated and frozen, floral, beer and wine, general merchandise, and health and beauty care, as well as fresh meat and seafood; and natural, organic, specialty, and healthy products. As of December 29, 2018, it had 316 stores, which included 308 independent operated stores, as well as 8 company operated stores in 5 western states and in Pennsylvania. The company was founded in 1946 and is headquartered in Emeryville, California.

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