Whole Foods Market (NASDAQ: WFM) and Caseys General Stores (NASDAQ:CASY) are both mid-cap retail/wholesale companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, risk, institutional ownership, earnings, profitability and analyst recommendations.
Insider and Institutional Ownership
86.3% of Whole Foods Market shares are held by institutional investors. Comparatively, 98.6% of Caseys General Stores shares are held by institutional investors. 1.3% of Whole Foods Market shares are held by company insiders. Comparatively, 1.3% of Caseys General Stores shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This is a breakdown of current recommendations for Whole Foods Market and Caseys General Stores, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Whole Foods Market||3||17||3||0||2.00|
|Caseys General Stores||0||6||4||1||2.55|
Whole Foods Market currently has a consensus price target of $37.39, suggesting a potential downside of 10.40%. Caseys General Stores has a consensus price target of $116.29, suggesting a potential upside of 11.52%. Given Caseys General Stores’ stronger consensus rating and higher probable upside, analysts plainly believe Caseys General Stores is more favorable than Whole Foods Market.
Risk & Volatility
Whole Foods Market has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500. Comparatively, Caseys General Stores has a beta of 0.48, meaning that its stock price is 52% less volatile than the S&P 500.
Valuation & Earnings
This table compares Whole Foods Market and Caseys General Stores’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Whole Foods Market||$15.88 billion||0.84||$1.32 billion||$1.22||34.20|
|Caseys General Stores||$6.64 billion||0.61||$509.54 million||$4.48||23.27|
Whole Foods Market has higher revenue and earnings than Caseys General Stores. Caseys General Stores is trading at a lower price-to-earnings ratio than Whole Foods Market, indicating that it is currently the more affordable of the two stocks.
This table compares Whole Foods Market and Caseys General Stores’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Whole Foods Market||2.44%||13.26%||6.84%|
|Caseys General Stores||2.36%||14.93%||6.00%|
Whole Foods Market pays an annual dividend of $0.72 per share and has a dividend yield of 1.7%. Caseys General Stores pays an annual dividend of $1.04 per share and has a dividend yield of 1.0%. Whole Foods Market pays out 59.0% of its earnings in the form of a dividend. Caseys General Stores pays out 23.2% 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. Whole Foods Market has increased its dividend for 14 consecutive years. Whole Foods Market is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Whole Foods Market beats Caseys General Stores on 9 of the 17 factors compared between the two stocks.
Whole Foods Market Company Profile
Whole Foods Market, Inc. is engaged in the business of natural and organic foods supermarket. The Company operates approximately 456 stores in the United States, Canada and the United Kingdom. Its stores have an average size of approximately 39,000 square feet, and are supported by its distribution centers, bake house facilities, commissary kitchens, seafood-processing facilities, a produce procurement center, and a specialty coffee and tea procurement and roasting operation, among others. It offers over 30,000 organic stock keeping units (SKUs), covering various areas of its store, including produce, packaged goods, bulk, frozen, dairy, meat, bakery, prepared foods, coffee, tea, beer, wine, cheese, nutritional supplements, vitamins, body care, pet foods and household goods. The Company’s brands include 365 Everyday Value, Allegro Coffee, Whole Foods Market, Whole Paws, and Engine 2 Plant-Strong. It also offers approximately 400 temporary exclusives.
Caseys General Stores Company Profile
Casey’s General Stores, Inc. and its subsidiaries, operate convenience stores under the name Casey’s General Store in approximately 10 Midwestern states, in Iowa, Missouri, and Illinois. The Company also operates approximately two stores selling primarily tobacco products. The stores carry a range of food, including freshly prepared foods such as pizza, donuts, and sandwiches, beverages, tobacco products, health and beauty aids, automotive products and other nonfood items. The Company operates approximately 1,930 stores. It operates approximately two distribution centers, through which the Company supply grocery and general merchandise items to its stores. Its general store typically carries over 3,000 food and nonfood items. The Company’s stores sell regional brands of dairy and bakery products, and approximately 90% of the stores offer beer. Its non-food items include tobacco products, health and beauty aids, school supplies, housewares, pet supplies, and automotive products.
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