Head-To-Head Comparison: Albertsons Companies (NYSE:ACI) & Krispy Kreme (NASDAQ:DNUT)

Krispy Kreme (NASDAQ:DNUT) and Albertsons Companies (NYSE:ACI) are both consumer staples companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.

Valuation & Earnings

This table compares Krispy Kreme and Albertsons Companies”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Krispy Kreme	$1.54 billion	0.44	$3.10 million	($2.65)	-1.50
Albertsons Companies	$80.39 billion	0.13	$958.60 million	$1.69	11.04

Albertsons Companies has higher revenue and earnings than Krispy Kreme. Krispy Kreme is trading at a lower price-to-earnings ratio than Albertsons Companies, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

81.7% of Krispy Kreme shares are owned by institutional investors. Comparatively, 71.4% of Albertsons Companies shares are owned by institutional investors. 3.0% of Krispy Kreme shares are owned by insiders. Comparatively, 1.4% of Albertsons Companies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

Krispy Kreme pays an annual dividend of $0.14 per share and has a dividend yield of 3.5%. Albertsons Companies pays an annual dividend of $0.60 per share and has a dividend yield of 3.2%. Krispy Kreme pays out -5.3% of its earnings in the form of a dividend. Albertsons Companies pays out 35.5% 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. Albertsons Companies has raised its dividend for 1 consecutive years. Krispy Kreme is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Krispy Kreme and Albertsons Companies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Krispy Kreme	3	5	4	0	2.08
Albertsons Companies	1	5	10	0	2.56

Krispy Kreme currently has a consensus price target of $6.45, suggesting a potential upside of 62.06%. Albertsons Companies has a consensus price target of $23.50, suggesting a potential upside of 25.92%. Given Krispy Kreme’s higher possible upside, equities analysts plainly believe Krispy Kreme is more favorable than Albertsons Companies.

Profitability

This table compares Krispy Kreme and Albertsons Companies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Krispy Kreme	-29.33%	-5.55%	-1.98%
Albertsons Companies	1.20%	36.39%	4.45%

Risk and Volatility

Krispy Kreme has a beta of 1.34, suggesting that its stock price is 34% more volatile than the S&P 500. Comparatively, Albertsons Companies has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500.

Summary

Albertsons Companies beats Krispy Kreme on 10 of the 17 factors compared between the two stocks.

About Krispy Kreme

Krispy Kreme, Inc., together with its subsidiaries, produces doughnuts in the United States, the United Kingdom, Ireland, Australia, New Zealand, Mexico, Canada, Japan, and internationally. The company operates through three segments: U.S., International, and Market Development. The company offers doughnut experiences through hot light theater and fresh shops, delivered fresh daily branded cabinets and merchandising units within grocery and convenience stores, quick service restaurants, club memberships, drug stores, and ecommerce, as well as through its branded sweet treat line comprising Krispy Kreme branded sweet treats. It also provides cookies under the Insomnia Cookies brand, cookie cakes, ice cream, cookie-wiches, and brownies; and operates Krispy Kreme company-owned shops and franchise shops. The company was formerly known as Krispy Kreme Doughnuts, Inc. and changed its name to Krispy Kreme, Inc. in May 2021. Krispy Kreme, Inc. was founded in 1937 and is based in Charlotte, North Carolina.

About Albertsons Companies

Albertsons Companies, Inc., through its subsidiaries, engages in the operation of food and drug stores in the United States. The company’s food and drug retail stores offer grocery products, general merchandise, health and beauty care products, pharmacy, fuel, and other items and services. It also manufactures and processes food products for sale in stores. It operates stores under various banners, including Albertsons, Safeway, Vons, Pavilions, Randalls, Tom Thumb, Carrs, Jewel-Osco, Acme, Shaw’s, Star Market, United Supermarkets, Market Street, Haggen, Kings Food Markets, and Balducci’s Food Lovers Market; and pharmacies, in-store branded coffee shops, adjacent fuel centers, distribution centers, and manufacturing facilities, as well as various digital platforms. Albertsons Companies, Inc. was founded in 1860 and is headquartered in Boise, Idaho. Albertsons Companies, Inc. operates as a subsidiary of Albertsons Investor Holdings LLC.