Tractor Supply (NASDAQ:TSCO) and Seven and I (OTCMKTS:SVNDY) Head to Head Contrast

Tractor Supply (NASDAQ:TSCO) and Seven and I (OTCMKTS:SVNDY) are both large-cap retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, earnings, dividends, institutional ownership, profitability and analyst recommendations.

Dividends

Tractor Supply pays an annual dividend of $0.92 per share and has a dividend yield of 1.6%. Seven and I pays an annual dividend of $0.19 per share and has a dividend yield of 1.4%. Tractor Supply pays out 45.1% of its earnings in the form of a dividend. Seven and I pays out 37.3% 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. Tractor Supply has raised its dividend for 16 consecutive years. Tractor Supply is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of current ratings and price targets for Tractor Supply and Seven and I, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tractor Supply	0	8	14	0	2.64
Seven and I	0	1	0	0	2.00

Tractor Supply presently has a consensus price target of $62.15, indicating a potential upside of 11.32%. Given Tractor Supply’s stronger consensus rating and higher probable upside, analysts clearly believe Tractor Supply is more favorable than Seven and I.

Volatility and Risk

Tractor Supply has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500. Comparatively, Seven and I has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500.

Earnings & Valuation

This table compares Tractor Supply and Seven and I”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tractor Supply	$14.88 billion	1.99	$1.10 billion	$2.04	27.37
Seven and I	$78.57 billion	0.45	$1.14 billion	$0.51	26.35

Seven and I has higher revenue and earnings than Tractor Supply. Seven and I is trading at a lower price-to-earnings ratio than Tractor Supply, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Tractor Supply and Seven and I’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tractor Supply	7.18%	46.83%	10.73%
Seven and I	1.65%	6.49%	2.33%

Institutional & Insider Ownership

98.7% of Tractor Supply shares are owned by institutional investors. Comparatively, 0.0% of Seven and I shares are owned by institutional investors. 0.7% of Tractor Supply shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Tractor Supply beats Seven and I on 14 of the 17 factors compared between the two stocks.

About Tractor Supply

Tractor Supply Company operates as a rural lifestyle retailer in the United States. The company offers various merchandise, including livestock and equine feed and equipment, poultry, fencing, and sprayers and chemicals; food, treats, and equipment for dogs, cats, and other small animals, as well as dog wellness products; seasonal and recreation products comprising tractors and riders, lawn and garden, bird feeding, power equipment, and other recreational products; truck, tool, and hardware products, such as truck accessories, trailers, generators, lubricants, batteries, and hardware and tools; and clothing, gift, and décor products consist of clothing, footwear, toys, snacks, and decorative merchandise. It provides its products under the 4health, Paws & Claws, American Farmworks, Producer's Pride, Bit & Bridle, Red Shed, Blue Mountain, Redstone, C.E. Schmidt, Retriever, Country Lane, Ridgecut, Countyline, Royal Wing, Country Tuff, Strive, Dumor, Traveller, Farm Table, Treeline, Groundwork, TSC Tractor Supply Co, Huskee, Untamed, and JobSmart brand names. The company operates its retail stores under the Tractor Supply Company, Petsense by Tractor Supply, and Orscheln Farm and Home names; and operates websites under the TractorSupply.com and Petsense.com names. It sells its products to recreational farmers, ranchers, and others. Tractor Supply Company was founded in 1938 and is based in Brentwood, Tennessee.

About Seven and I

Seven & i Holdings Co., Ltd. operates convenience stores, superstores, department stores, supermarkets, and specialty stores. It operates through six segments: Domestic Convenience Store operations, Overseas Convenience Store Operations, Superstore Operations, Department and Specialty Store Operations, Financial Services, and Others. The company engages in the operation of convenience stores comprising directly managed corporate stores and franchised stores; retail business that provides daily life necessities, such as food and other daily necessities and dollar merchandise and services; banking, leasing, and credit card business; and real estate business. Seven & i Holdings Co., Ltd. was incorporated in 2005 and is headquartered in Tokyo, Japan.