Kroger (NYSE:KR) versus Carrefour (OTCMKTS:CRRFY) Critical Survey

Carrefour (OTCMKTS:CRRFY) and Kroger (NYSE:KR) are both large-cap retail/wholesale companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, institutional ownership, dividends, risk, analyst recommendations, earnings and valuation.

Valuation and Earnings

This table compares Carrefour and Kroger”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Carrefour	$94.44 billion	0.12	$783.44 million	N/A	N/A
Kroger	$147.12 billion	0.31	$2.67 billion	$3.67	18.92

Kroger has higher revenue and earnings than Carrefour.

Insider and Institutional Ownership

0.1% of Carrefour shares are held by institutional investors. Comparatively, 80.9% of Kroger shares are held by institutional investors. 0.4% of Kroger shares are held by company 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

Carrefour pays an annual dividend of $0.18 per share and has a dividend yield of 5.8%. Kroger pays an annual dividend of $1.40 per share and has a dividend yield of 2.0%. Kroger pays out 38.1% of its earnings in the form of a dividend. Kroger has increased its dividend for 19 consecutive years.

Analyst Recommendations

This is a summary of current ratings and price targets for Carrefour and Kroger, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Carrefour	1	1	2	0	2.25
Kroger	0	12	7	0	2.37

Kroger has a consensus price target of $70.5789, indicating a potential upside of 1.65%. Given Kroger’s stronger consensus rating and higher possible upside, analysts clearly believe Kroger is more favorable than Carrefour.

Volatility & Risk

Carrefour has a beta of 0.66, suggesting that its stock price is 34% less volatile than the S&P 500. Comparatively, Kroger has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500.

Profitability

This table compares Carrefour and Kroger’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Carrefour	N/A	N/A	N/A
Kroger	1.89%	34.71%	6.11%

Summary

Kroger beats Carrefour on 12 of the 15 factors compared between the two stocks.

About Carrefour

Carrefour SA engages in the operation of stores that offer food and non-food products in various formats and channels in France, Spain, Italy, Belgium, Poland, Romania, Brazil, and Argentina, as well as in the Middle East, Africa, and Asia. The company operates hypermarkets, supermarkets, convenience stores, club stores, and cash and carry stores; e-commerce sites; and service stations. It is also involved in banking, insurance, property development, and franchise activities; the provision of travel agency services; and the rental of shopping malls. The company was founded in 1959 and is based in Massy, France.

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.