Comparing Target (NYSE:TGT) & Natural Grocers by Vitamin Cottage (NYSE:NGVC)

Natural Grocers by Vitamin Cottage (NYSE:NGVC) and Target (NYSE:TGT) are both consumer staples companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings and target prices for Natural Grocers by Vitamin Cottage and Target, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Natural Grocers by Vitamin Cottage	0	1	2	0	2.67
Target	3	18	11	0	2.25

Natural Grocers by Vitamin Cottage currently has a consensus price target of $47.00, suggesting a potential upside of 68.76%. Target has a consensus price target of $159.52, suggesting a potential downside of 2.82%. Given Natural Grocers by Vitamin Cottage’s stronger consensus rating and higher possible upside, equities analysts plainly believe Natural Grocers by Vitamin Cottage is more favorable than Target.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Natural Grocers by Vitamin Cottage	3.55%	21.11%	7.03%
Target	4.08%	23.23%	6.41%

Insider & Institutional Ownership

32.0% of Natural Grocers by Vitamin Cottage shares are owned by institutional investors. Comparatively, 79.7% of Target shares are owned by institutional investors. 58.3% of Natural Grocers by Vitamin Cottage shares are owned by company insiders. Comparatively, 0.1% of Target shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Natural Grocers by Vitamin Cottage and Target”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Natural Grocers by Vitamin Cottage	$1.33 billion	0.48	$46.44 million	$2.06	13.52
Target	$107.70 billion	0.69	$3.71 billion	$9.63	17.05

Target 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 Target, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Natural Grocers by Vitamin Cottage has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500. Comparatively, Target has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500.

Dividends

Natural Grocers by Vitamin Cottage pays an annual dividend of $0.60 per share and has a dividend yield of 2.2%. Target pays an annual dividend of $4.64 per share and has a dividend yield of 2.8%. Natural Grocers by Vitamin Cottage pays out 29.1% of its earnings in the form of a dividend. Target pays out 48.2% 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. Natural Grocers by Vitamin Cottage has raised its dividend for 1 consecutive years and Target has raised its dividend for 54 consecutive years. Target is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Target beats Natural Grocers by Vitamin Cottage on 11 of the 17 factors compared between the two stocks.

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.

About Target

Target Corporation operates as a general merchandise retailer in the United States. The company offers apparel for women, men, boys, girls, toddlers, and infants and newborns, as well as jewelry, accessories, and shoes; and beauty and personal care, baby gear, cleaning, paper products, and pet supplies. It also provides dry grocery, dairy, frozen food, beverages, candy, snacks, deli, bakery, meat, and food service; electronics, which includes video game hardware and software, toys, entertainment, sporting goods, and luggage; and furniture, lighting, storage, kitchenware, small appliances, home decor, bed and bath, home improvement, school/office supplies, greeting cards and party supplies, and other seasonal merchandise. In addition, the company sells merchandise through periodic design and creative partnerships, and shop-in-shop experience; and in-store amenities. Further, it sells its products through its stores; and digital channels, including Target.com. Target Corporation was incorporated in 1902 and is headquartered in Minneapolis, Minnesota.