Andersons (NASDAQ:ANDE – Get Free Report) and Albertsons Companies (NYSE:ACI – Get Free Report) are both mid-cap consumer staples companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.
Volatility and Risk
Andersons has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500. Comparatively, Albertsons Companies has a beta of 0.37, meaning that its stock price is 63% less volatile than the S&P 500.
Dividends
Andersons pays an annual dividend of $0.80 per share and has a dividend yield of 1.2%. Albertsons Companies pays an annual dividend of $0.68 per share and has a dividend yield of 5.4%. Andersons pays out 15.4% of its earnings in the form of a dividend. Albertsons Companies pays out 850.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Andersons has increased its dividend for 28 consecutive years and Albertsons Companies has increased its dividend for 1 consecutive years.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Andersons | $11.01 billion | 0.21 | $95.71 million | $5.18 | 13.30 |
| Albertsons Companies | $83.17 billion | 0.07 | $217.40 million | $0.08 | 157.19 |
Albertsons Companies has higher revenue and earnings than Andersons. Andersons 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 & Insider Ownership
87.1% of Andersons shares are owned by institutional investors. Comparatively, 71.3% of Albertsons Companies shares are owned by institutional investors. 4.3% of Andersons shares are owned by insiders. Comparatively, 1.2% of Albertsons Companies shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Andersons and Albertsons Companies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Andersons | 1.62% | 16.23% | 5.84% |
| Albertsons Companies | 0.08% | 45.59% | 3.83% |
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Andersons and Albertsons Companies, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Andersons | 0 | 1 | 3 | 1 | 3.00 |
| Albertsons Companies | 4 | 8 | 5 | 0 | 2.06 |
Andersons currently has a consensus target price of $95.00, indicating a potential upside of 37.92%. Albertsons Companies has a consensus target price of $15.31, indicating a potential upside of 21.73%. Given Andersons’ stronger consensus rating and higher possible upside, equities analysts plainly believe Andersons is more favorable than Albertsons Companies.
Summary
Andersons beats Albertsons Companies on 12 of the 18 factors compared between the two stocks.
About Andersons
The Andersons, Inc. operates in trade, renewables, and nutrient and industrial sectors in the United States, Canada, Mexico, Egypt, Switzerland, and internationally. It operates through three segments: Trade, Renewables, and Nutrient & Industrial. The company’s Trade segment operates grain elevators; stores commodities; and provides grain marketing, risk management, and origination services, as well as sells commodities, such as corn, soybeans, wheat, oats, ethanol, and corn oil. This segment also engages in the commodity merchandising business, as well as offers logistics for physical commodities, such as whole grains, grain products, feed ingredients, domestic fuel products, and other agricultural commodities. Its Renewables segment produces, purchases, and sells ethanol, and co-products, as well as offers facility operations, risk management, and marketing services to the ethanol plants it invests in and operates. The company’s Nutrient & Industrial segment manufactures, distributes, and retails agricultural and related plant nutrients, liquid industrial products, corncob-based products, and pelleted lime and gypsum products, as well as turf fertilizer, pesticide, and herbicide products; and crop nutrients, crop protection chemicals, and seed products, as well as provides application and agronomic services to commercial and family farmers. In addition, this segment produces corncob-based products for laboratory animal bedding and private-label cat litter, as well as absorbents, blast cleaners, carriers, and polishers; professional lawn care products for golf course and turf care markets; fertilizer and weed, and pest control products; dry and liquid agricultural nutrients, pelleted lime, gypsum, and soil amendments; and micronutrients, as well as industrial products comprising nitrogen reagents, calcium nitrate, deicers, and dust abatement products. The Andersons, Inc. was founded in 1947 and is based in Maumee, Ohio.
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.
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