Financial Review: Village Super Market (NASDAQ:VLGEA) vs. Arko (NASDAQ:ARKO)

view original post

Village Super Market (NASDAQ:VLGEAGet Rating) and Arko (NASDAQ:ARKOGet Rating) are both small-cap retail/wholesale companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, risk, earnings, institutional ownership, analyst recommendations, profitability and dividends.

Dividends

Village Super Market pays an annual dividend of $1.00 per share and has a dividend yield of 4.3%. Arko pays an annual dividend of $0.08 per share and has a dividend yield of 1.1%. Village Super Market pays out 49.5% of its earnings in the form of a dividend. Arko pays out 15.1% 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.

Profitability

This table compares Village Super Market and Arko’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Village Super Market 1.44% 8.32% 3.22%
Arko 0.96% 32.38% 2.66%

Institutional and Insider Ownership

41.2% of Village Super Market shares are held by institutional investors. Comparatively, 56.5% of Arko shares are held by institutional investors. 31.2% of Village Super Market shares are held by insiders. Comparatively, 32.7% of Arko shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Village Super Market and Arko’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Village Super Market $2.03 billion 0.17 $19.99 million $2.02 11.46
Arko $7.42 billion 0.13 $59.20 million $0.53 14.36

Arko has higher revenue and earnings than Village Super Market. Village Super Market is trading at a lower price-to-earnings ratio than Arko, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Village Super Market has a beta of 0.18, suggesting that its stock price is 82% less volatile than the S&P 500. Comparatively, Arko has a beta of 0.12, suggesting that its stock price is 88% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Village Super Market and Arko, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Village Super Market 0 0 0 0 N/A
Arko 0 0 1 0 3.00

Summary

Arko beats Village Super Market on 8 of the 14 factors compared between the two stocks.

Village Super Market Company Profile (Get Rating)

Village Super Market, Inc. operates a chain of supermarkets in the United States. Its stores feature specialty departments, such as an on-site bakery, an expanded delicatessen; and various natural and organic foods, ethnic and international foods, prepared foods, and pharmacies. The company operates a chain of twenty-nine ShopRite supermarkets, five Fairway Markets, and three Gourmet Garage specialty markets located in New Jersey, New York, Pennsylvania, and Maryland. Village Super Market, Inc. was founded in 1937 and is based in Springfield, New Jersey.

Arko Company Profile (Get Rating)

Arko Corp. operates convenience stores in the United States. It operates through three segments: Retail, Wholesale, and GPM Petroleum. The Retail segment engages in the sale of fuel and merchandise to retail consumers. The Wholesale segment supplies fuel to third-party dealers and consignment agents. The GPM Petroleum segment supplies fuel to sub-wholesalers and bulk purchasers. The company operates approximately 2,950 locations comprising approximately 1,350 company-operated stores and approximately 1,600 dealer sites. Arko Corp. is based in Richmond, Virginia.

Receive News & Ratings for Village Super Market Daily – Enter your email address below to receive a concise daily summary of the latest news and analysts’ ratings for Village Super Market and related companies with MarketBeat.com’s FREE daily email newsletter.