Critical Survey: Woolworths Group (WOLWF) and Ingles Markets (IMKTA)

Ingles Markets (NASDAQ:IMKTA) and Woolworths Group (OTCMKTS:WOLWF) are both retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, institutional ownership, risk, valuation, profitability and analyst recommendations.

Valuation & Earnings

This table compares Ingles Markets and Woolworths Group’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ingles Markets $4.09 billion 0.14 $97.36 million $4.81 5.72
Woolworths Group N/A N/A N/A N/A N/A

Ingles Markets has higher revenue and earnings than Woolworths Group.

Analyst Recommendations

This is a summary of current recommendations and price targets for Ingles Markets and Woolworths Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ingles Markets 0 0 0 0 N/A
Woolworths Group 0 1 0 0 2.00

Profitability

This table compares Ingles Markets and Woolworths Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ingles Markets 1.80% 11.64% 3.76%
Woolworths Group N/A N/A N/A

Dividends

Ingles Markets pays an annual dividend of $0.66 per share and has a dividend yield of 2.4%. Woolworths Group does not pay a dividend. Ingles Markets pays out 13.7% of its earnings in the form of a dividend.

Insider and Institutional Ownership

63.2% of Ingles Markets shares are owned by institutional investors. 29.5% of Ingles Markets shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Ingles Markets beats Woolworths Group on 7 of the 8 factors compared between the two stocks.

Ingles Markets Company Profile

Ingles Markets, Incorporated operates a chain of supermarkets in the southeast United States. Its supermarkets offer various food products, including grocery, meat and dairy products, produce, frozen foods, and other perishables; and non-food products, such as fuel centers, pharmacies, health and beauty care products, and general merchandise, as well as private label items. The company also provides home meal replacement items, delicatessens, bakeries, floral departments, and greeting cards, as well as organic, beverage, and health-related items. As of September 30, 2018, it operated 190 supermarkets under the Ingles name; and 10 supermarkets under the Sav-Mor name in western North Carolina, western South Carolina, northern Georgia, eastern Tennessee, southwestern Virginia, and northeastern Alabama, as well as 108 pharmacies and 102 fuel stations. In addition, it is involved in the fluid dairy operation and shopping center rental businesses. Ingles Markets, Incorporated was founded in 1963 and is headquartered in Black Mountain, North Carolina.

Woolworths Group Company Profile

Woolworths Group Limited operates retail stores. It operates through Australian Food, New Zealand Food, Endeavour Drinks, BIG W, Hotels, and Other segments. The Australian Food segment engages in the procurement and resale of food products to customers in Australia. It operates 1,008 Woolworths supermarkets and Metro stores. The New Zealand Food segment is involved in the procurement and resale of food and drinks to customers in New Zealand. This segment operates 181 Countdown supermarkets, as well as engages in the wholesale operations. The Endeavour Drinks segment procures and resells liquor products to customers in Australia. It operates 1,545 liquor stores under Dan Murphy's and BWS brands; and Summergate stores, as well as Cellarmasters, Langtons, and winemarket.com.au online platforms. The BIG W segment procures and resells discount general merchandise products to customers in Australia. This segment operates 183 BIG W stores. The Hotels segment offers leisure and hospitality services, including food and drinks, accommodation, entertainment, and gaming in Australia. It operates 323 hotels, including bars, dining, gaming, accommodation, and venue hire operations. The Other segment is also involved in the property leasing business. Woolworths Group Limited has a strategic alliance with Caltex across convenience, wholesale food, redemption, loyalty, and fuel supply. The company was formerly known as Woolworths Limited and changed its name to Woolworths Group Limited in December 2017. Woolworths Group Limited was founded in 1924 and is based in Bella Vista, Australia.

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