Critical Contrast: Performance Food Group (NYSE:PFGC) and AMCON Distributing (NYSE:DIT)

Performance Food Group (NYSE:PFGC) and AMCON Distributing (NYSE:DIT) are both retail/wholesale companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, profitability, valuation and institutional ownership.

Insider & Institutional Ownership

96.8% of Performance Food Group shares are owned by institutional investors. Comparatively, 10.5% of AMCON Distributing shares are owned by institutional investors. 3.4% of Performance Food Group shares are owned by company insiders. Comparatively, 66.5% of AMCON Distributing 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.

Volatility and Risk

Performance Food Group has a beta of 1.42, suggesting that its stock price is 42% more volatile than the S&P 500. Comparatively, AMCON Distributing has a beta of 0.27, suggesting that its stock price is 73% less volatile than the S&P 500.

Earnings & Valuation

This table compares Performance Food Group and AMCON Distributing’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Performance Food Group $25.09 billion 0.20 -$114.10 million $0.70 54.79
AMCON Distributing $1.39 billion 0.03 $3.20 million N/A N/A

AMCON Distributing has lower revenue, but higher earnings than Performance Food Group.

Profitability

This table compares Performance Food Group and AMCON Distributing’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Performance Food Group -0.45% 4.42% 1.04%
AMCON Distributing 0.17% 4.01% 1.55%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Performance Food Group and AMCON Distributing, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Performance Food Group 0 1 8 0 2.89
AMCON Distributing 0 0 0 0 N/A

Performance Food Group presently has a consensus target price of $43.89, suggesting a potential upside of 14.44%. Given Performance Food Group’s higher probable upside, equities analysts plainly believe Performance Food Group is more favorable than AMCON Distributing.

Summary

Performance Food Group beats AMCON Distributing on 7 of the 12 factors compared between the two stocks.

About Performance Food Group

Performance Food Group Company, through its subsidiaries, markets and distributes food and food-related products in the United States. It operates in two segments, Foodservice and Vistar. The company offers a range of frozen foods, including meats, fully prepared appetizers and entrees, fruits, vegetables, and desserts; canned and dry foods; fresh meats; dairy products; beverage products; imported specialties; fresh produce; and candy, snack, and other products, as well as beef, seafood, shortenings and oils, baked goods, salad dressings, teas and cocoas, pork, and others. It also supplies various non-food items, such as paper products comprising pizza boxes, disposable napkins, plates, and cups; tableware that include china and silverware; cookware, which comprise pots, pans, and utensils; restaurant and kitchen equipment and supplies; cigarettes and other tobacco products; and cleaning supplies. In addition, the company offers value-added services related to foodservice distribution, including electronic order-taking, payment, and other Internet based services; various reports and other data, menu planning advice, food safety training, and assistance in inventory control, as well as access to various third-party services designed to add value to its customers' businesses. It serves independent and chain restaurants, schools, business and industry locations, hospitals, vending distributors, office coffee service distributors, retailers, theaters, convenience stores, and hospitality providers, as well as franchises and other institutional customers. The company markets and distributes approximately 200,000 food and food-related products from 109 distribution centers to approximately 200,000 customer locations. Performance Food Group Company was founded in 1885 and is headquartered in Richmond, Virginia.

About AMCON Distributing

AMCON Distributing Company, together with its subsidiaries, engages in the wholesale distribution of consumer products in the Central, Rocky Mountain, and Mid-South regions of the United States. It operates in two segments, Wholesale Distribution and Retail Health Food. The Wholesale Distribution segment distributes consumer products, including cigarettes and tobacco products, candy and other confectionery, beverages, groceries, paper products, health and beauty care products, frozen and refrigerated products, and institutional foodservice products. It serves retailers, such as convenience stores, discount and general merchandise stores, grocery stores, drug stores, liquor stores, tobacco shops, and gas stations; and institutional customers, including restaurants and bars, schools, and sports complexes, as well as other wholesalers. This segment also markets private label lines of water, candy products, batteries, and other products. The Retail Health Food segment is involved in the retail of natural, organic, and specialty foods consisting of produce, baked goods, frozen foods, nutritional supplements, personal care items, and general merchandise. As of November 8, 2019, it operated 22 retail health food stores under the Chamberlin's Natural Foods, Akin's Natural Foods, and Earth Origins Market brands. AMCON Distributing Company was founded in 1981 and is based in Omaha, Nebraska.

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