Ingles Markets (NASDAQ:IMKTA – Get Free Report) and Greggs (OTCMKTS:GGGSF – Get Free Report) are both retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, earnings, valuation and risk.
Insider and Institutional Ownership
62.6% of Ingles Markets shares are owned by institutional investors. Comparatively, 42.1% of Greggs shares are owned by institutional investors. 23.1% of Ingles Markets shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This table compares Ingles Markets and Greggs’ net margins, return on equity and return on assets.
|Return on Equity
|Return on Assets
|Strong Buy Ratings
Ingles Markets pays an annual dividend of $0.66 per share and has a dividend yield of 0.8%. Greggs pays an annual dividend of $0.20 per share and has a dividend yield of 0.6%. Ingles Markets pays out 6.0% of its earnings in the form of a dividend. Greggs pays out 91.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ingles Markets is clearly the better dividend stock, given its higher yield and lower payout ratio.
Valuation and Earnings
This table compares Ingles Markets and Greggs’ revenue, earnings per share (EPS) and valuation.
|Earnings Per Share
Ingles Markets has higher revenue and earnings than Greggs. Ingles Markets is trading at a lower price-to-earnings ratio than Greggs, indicating that it is currently the more affordable of the two stocks.
Ingles Markets beats Greggs on 9 of the 10 factors compared between the two stocks.
About Ingles Markets
Ingles Markets, Incorporated, together with its subsidiaries, operates a chain of supermarkets in the southeast United States. It offers food products, including grocery, meat and dairy products, produce, frozen foods, and other perishables; and non-food products, which include fuel centers, pharmacies, health and beauty care products, and general merchandise, as well as private label items. The company owns and operates a milk processing and packaging plant that supplies organic milk, fruit juices, and bottled water products to other retailers, food service distributors, and grocery warehouses. In addition, it provides home meal replacement items, delicatessens, bakeries, floral departments, and greeting cards, as well as broad selections of local organic, beverage, and health-related items. The company operates under the Ingles and Sav-Mor brand names. Ingles Markets, Incorporated was founded in 1963 and is headquartered in Asheville, North Carolina.
Greggs plc operates as a food-on-the-go retailer in the United Kingdom. It offers a range of fresh and frozen bakery products, sandwiches, and drinks. The company sells products to franchise and wholesale partners for sale in their own outlets. It is also involved in the property holding, non-trading, and trustee businesses. The company also operates through its own shops. Greggs plc was founded in 1939 and is headquartered in Newcastle upon Tyne, the United Kingdom.
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