Kingfisher (OTCMKTS:KGFHY) and ODP (NASDAQ:ODP) Financial Comparison

ODP (NASDAQ:ODP) and Kingfisher (OTCMKTS:KGFHY) are both retail/wholesale companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, profitability, valuation and earnings.

Profitability

This table compares ODP and Kingfisher’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ODP	-0.14%	12.84%	3.01%
Kingfisher	N/A	N/A	N/A

Risk and Volatility

ODP has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500. Comparatively, Kingfisher has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for ODP and Kingfisher, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ODP	1	2	0	0	1.67
Kingfisher	3	2	1	0	1.67

ODP currently has a consensus target price of $28.00, indicating a potential upside of 0.00%. Given ODP’s higher possible upside, research analysts plainly believe ODP is more favorable than Kingfisher.

Dividends

ODP pays an annual dividend of $0.10 per share and has a dividend yield of 0.4%. Kingfisher pays an annual dividend of $0.18 per share and has a dividend yield of 2.1%. ODP pays out -28.6% of its earnings in the form of a dividend.

Institutional & Insider Ownership

99.6% of ODP shares are owned by institutional investors. Comparatively, 0.0% of Kingfisher shares are owned by institutional investors. 3.6% of ODP shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares ODP and Kingfisher”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ODP	$6.53 billion	0.13	-$3.00 million	($0.35)	-80.00
Kingfisher	$16.34 billion	0.46	$235.86 million	N/A	N/A

Kingfisher has higher revenue and earnings than ODP.

Summary

ODP beats Kingfisher on 7 of the 13 factors compared between the two stocks.

About ODP

The ODP Corporation provides business services and supplies, products, and digital workplace technology solutions for small, medium, and enterprise businesses in the United States, Puerto Rico, and the U.S. Virgin Islands. The company operates through four divisions: ODP Business Solutions, Office Depot, Veyer, and Varis. The ODP Business Solutions division offers adjacency products, including cleaning, janitorial, and breakroom supplies, office furniture, technology products; and copy and print services through sales force, catalogs, telesales, and through Internet websites. This segment also engages in office supply distribution business. The Office Depot division sells office supplies, technology products and solutions, business machines and related supplies, cleaning, breakroom and facilities products, personal protective equipment, and office furniture; and offers business services, including copying, printing, digital imaging, mailing, shipping, and technology support services through a fully integrated omni-channel platform of 980 Office Depot and OfficeMax retail stores, and through www.officedepot.com. The Veyer division engages in supply chain, distribution, procurement, and global sourcing operations. The Varis division operates tech-enabled B2B indirect procurement marketplace, where buyers and suppliers to transact through the platform's consumer-like buying experience, advanced spend management tools, network of suppliers, and technology capabilities. The company offers its products under various brands, including Office Depot, OfficeMax, and Grand&Toy, as well as others. The ODP Corporation was incorporated in 1986 and is headquartered in Boca Raton, Florida.

About Kingfisher

Kingfisher plc, together with its subsidiaries, supplies home improvement products and services primarily in the United Kingdom, Ireland, France, and internationally. It also operates retail stores under the B&Q, Castorama, Brico Dépôt, Screwfix, TradePoint, and Koçtas brands. The company sells its products through stores and e-commerce channels. Kingfisher plc was incorporated in 1982 and is headquartered in London, the United Kingdom.