Analyzing Natural Grocers by Vitamin Cottage (NYSE:NGVC) & Casey’s General Stores (NASDAQ:CASY)

Casey’s General Stores (NASDAQ:CASY) and Natural Grocers by Vitamin Cottage (NYSE:NGVC) are both consumer staples companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, earnings, risk and analyst recommendations.

Institutional and Insider Ownership

85.6% of Casey’s General Stores shares are owned by institutional investors. Comparatively, 32.0% of Natural Grocers by Vitamin Cottage shares are owned by institutional investors. 0.7% of Casey’s General Stores shares are owned by company insiders. Comparatively, 58.3% of Natural Grocers by Vitamin Cottage shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Casey’s General Stores and Natural Grocers by Vitamin Cottage”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Casey’s General Stores	$17.56 billion	1.59	$714.45 million	$19.16	39.46
Natural Grocers by Vitamin Cottage	$1.33 billion	0.48	$46.44 million	$2.06	13.52

Casey’s General Stores has higher revenue and earnings than Natural Grocers by Vitamin Cottage. Natural Grocers by Vitamin Cottage is trading at a lower price-to-earnings ratio than Casey’s General Stores, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations and price targets for Casey’s General Stores and Natural Grocers by Vitamin Cottage, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Casey’s General Stores	0	6	14	0	2.70
Natural Grocers by Vitamin Cottage	0	1	2	0	2.67

Casey’s General Stores currently has a consensus target price of $928.53, suggesting a potential upside of 22.81%. Natural Grocers by Vitamin Cottage has a consensus target price of $47.00, suggesting a potential upside of 68.76%. Given Natural Grocers by Vitamin Cottage’s higher possible upside, analysts clearly believe Natural Grocers by Vitamin Cottage is more favorable than Casey’s General Stores.

Volatility and Risk

Casey’s General Stores has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500. Comparatively, Natural Grocers by Vitamin Cottage has a beta of 1.3, suggesting that its stock price is 30% more volatile than the S&P 500.

Profitability

This table compares Casey’s General Stores and Natural Grocers by Vitamin Cottage’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Casey’s General Stores	4.07%	18.73%	8.29%
Natural Grocers by Vitamin Cottage	3.55%	21.11%	7.03%

Dividends

Casey’s General Stores pays an annual dividend of $2.60 per share and has a dividend yield of 0.3%. Natural Grocers by Vitamin Cottage pays an annual dividend of $0.60 per share and has a dividend yield of 2.2%. Casey’s General Stores pays out 13.6% of its earnings in the form of a dividend. Natural Grocers by Vitamin Cottage pays out 29.1% 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. Casey’s General Stores has increased its dividend for 24 consecutive years and Natural Grocers by Vitamin Cottage has increased its dividend for 1 consecutive years.

Summary

Casey’s General Stores beats Natural Grocers by Vitamin Cottage on 12 of the 17 factors compared between the two stocks.

About Casey’s General Stores

Casey’s General Stores, Inc. engages in the provision of management and operation of convenience stores and gasoline stations. It provides self-service gasoline, a wide selection of grocery items, and an array of freshly prepared food items. The firm offers food, beverages, tobacco products, health and beauty aids, automotive products, and other non-food items. The company was founded by Donald F. Lamberti in 1968 and is headquartered in Ankeny, IA.

About Natural Grocers by Vitamin Cottage

Natural Grocers by Vitamin Cottage, Inc., together with its subsidiaries, retails natural and organic groceries, and dietary supplements in the United States. The company’s stores offer natural and organic grocery products, such as organic produce; private label repackaged bulk products, including dried fruits, nuts, grains, granolas, teas, herbs, and spices, as well as peanut and almond butters; private label products comprising grocery staples, household products, bulk foods, and vitamins and dietary supplements, as well as organic eggs, organic flavored coffee, and organic mustard; dry, frozen, and canned groceries; meat and seafood products; dairy products, dairy substitutes, and eggs; prepared foods; bread and baked products; beverages; and beer, wine, and hard cider products. Its stores also provide name-brand supplements, as well as private label dietary supplements; body care products consisting of cosmetics, skin care, hair care, fragrance, and personal care products containing natural and organic ingredients; pet care and food products; books and handouts; household and general merchandise, including cleaning supplies, paper products, and dish and laundry soaps, as well as other common household products, such as diapers; and books and handouts. The company operates its retail stores under the Natural Grocers by Vitamin Cottage trademark, as well as Vitamin Cottage Natural Grocers and Health Hotline trademarks. The company also offers science-based nutrition education programs to help customers make informed health and nutrition choices. Natural Grocers by Vitamin Cottage, Inc. was founded in 1955 and is headquartered in Lakewood, Colorado.