Tesco (OTCMKTS:TSCDY – Get Free Report) and J. Sainsbury (OTCMKTS:JSAIY – Get Free Report) are both retail/wholesale companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, earnings, risk, analyst recommendations and institutional ownership.
Insider and Institutional Ownership
0.0% of Tesco shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Tesco and J. Sainsbury”s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Tesco | $89.07 billion | 0.41 | $2.07 billion | N/A | N/A |
J. Sainsbury | $41.86 billion | 0.21 | $308.77 million | N/A | N/A |
Tesco has higher revenue and earnings than J. Sainsbury.
Dividends
Tesco pays an annual dividend of $0.78 per share and has a dividend yield of 4.7%. J. Sainsbury pays an annual dividend of $0.96 per share and has a dividend yield of 6.2%.
Risk and Volatility
Tesco has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500. Comparatively, J. Sainsbury has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Tesco and J. Sainsbury, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Tesco | 0 | 1 | 2 | 2 | 3.20 |
J. Sainsbury | 0 | 3 | 0 | 3 | 3.00 |
Profitability
This table compares Tesco and J. Sainsbury’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Tesco | N/A | N/A | N/A |
J. Sainsbury | N/A | N/A | N/A |
Summary
Tesco beats J. Sainsbury on 6 of the 9 factors compared between the two stocks.
About Tesco
Tesco PLC, together with its subsidiaries, operates as a grocery retailer in the United Kingdom, Republic of Ireland, the Czech Republic, Slovakia, and Hungary. It offers grocery products through its stores, as well as online. The company is also involved in the food and drink wholesaling activities. In addition, it provides banking and insurance and mobile operating services. Further, the company operates a network of one stop convenience stores; and offers data science, technology, software, and consultancy services. Tesco PLC was founded in 1919 and is headquartered in Welwyn Garden City, the United Kingdom.
About J. Sainsbury
J Sainsbury plc, together with its subsidiaries, engages in the food, general merchandise and clothing retailing, and financial services activities in the United Kingdom and the Republic of Ireland. It operates through three segments: Retail Food, Retail General Merchandise and Clothing, and Financial Services. The company operates various store formats, including convenience stores and supermarkets. It is also involved in the online grocery and general merchandise operations. In addition, it offers financial services, such as credit cards, scorecards, and personal loans; and home, car, pet, travel, and life insurance products. J Sainsbury plc was founded in 1869 and is headquartered in London, the United Kingdom.
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