Critical Comparison: Kroger (NYSE:KR) versus Grupo Comercial Chedraui (OTCMKTS:GCHEF)

Grupo Comercial Chedraui (OTCMKTS:GCHEF) and Kroger (NYSE:KR) are both consumer defensive companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, valuation, analyst recommendations, institutional ownership and dividends.

Insider & Institutional Ownership

10.9% of Grupo Comercial Chedraui shares are owned by institutional investors. Comparatively, 80.9% of Kroger shares are owned by institutional investors. 1.4% of Kroger shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations for Grupo Comercial Chedraui and Kroger, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grupo Comercial Chedraui	0	0	0	0	N/A
Kroger	0	4	4	0	2.50

Kroger has a consensus price target of $54.64, suggesting a potential downside of 4.33%. Given Kroger’s higher possible upside, analysts clearly believe Kroger is more favorable than Grupo Comercial Chedraui.

Profitability

This table compares Grupo Comercial Chedraui and Kroger’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grupo Comercial Chedraui	N/A	N/A	N/A
Kroger	1.44%	31.44%	6.89%

Earnings & Valuation

This table compares Grupo Comercial Chedraui and Kroger’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grupo Comercial Chedraui	N/A	N/A	N/A	$1.77	4.60
Kroger	$150.04 billion	0.27	$2.16 billion	$2.96	19.29

Kroger has higher revenue and earnings than Grupo Comercial Chedraui. Grupo Comercial Chedraui is trading at a lower price-to-earnings ratio than Kroger, indicating that it is currently the more affordable of the two stocks.

Summary

Kroger beats Grupo Comercial Chedraui on 10 of the 10 factors compared between the two stocks.

About Grupo Comercial Chedraui

Grupo Comercial Chedraui, S.A.B. de C.V. operates selfservice stores. The company operates supermarkets for fruits and vegetables; res, pig, aves, fish, shrimp and shellfish, and other meats; coffee and tea, cereals and bars, cookies, soups, pastas, and purees; sausages, ham, bacon, and other cold meats; creams, eggs, leche, butter, marfarines, shortenings, yoghurt, and fermented; and cheese products. It offers sparkling, white, rose, and red wines; distillates, liquors, whisky, tequila, ron, vodka, mezcal, and ginebra; beers; smoking accessories, prepared drinks, and halls and frosts products; baby formula, cookies, juices, milk powder, and porridge; baby care and hygiene, diapers, and wet wipes; clothes, such as bibs, socks, sets, disguises, caps, and gloves; accessories for mom, respired, kangaroos, strollers and others, pacifiers, and cots; toys, which include early stimulation, gyms, mobile, and stuffed animals products; and blankets, cushions, and bed sheets. In addition, it offers pharmacy products including cottons, antiseptic, measuring devices, face mask, bandages and gauze, and antibacterial gel and wipes; disposable underwear, bed guards, and pads; analgesics, antifungals, dermatological, diabetes, stomach, and generic medicines; contraceptives, condones, lubricants, pregnancy test, and invigorating products; and vitamins and supplements. Further, it offers belts, ties, caps, glasses, watches, girdles, and watches for men and women; shaving and waxing; skin and hair care; and fragrances products. Additionally, the company operates pets; home, office, and garden; technology; sports and leisure; and toy stores. Grupo Comercial Chedraui, S.A.B. de C.V. was founded in 1920 and is based in Mexico City, Mexico.

About Kroger

The Kroger Co. operates as a food and drug retailer in the United States. The company operates combination food and drug stores, multi-department stores, marketplace stores, and price impact warehouses. Its combination food and drug stores offer natural food and organic sections, pharmacies, general merchandise, pet centers, fresh seafood, and organic produce; and multi-department stores provide apparel, home fashion and furnishings, outdoor living, electronics, automotive products, and toys. The company's marketplace stores offer full-service grocery, pharmacy, health and beauty care, and perishable goods, as well as general merchandise, including apparel, home goods, and toys; and price impact warehouse stores provide grocery, and health and beauty care items, as well as meat, dairy, baked goods, and fresh produce items. It also manufactures and processes food products for sale in its supermarkets and online; and sells fuel through fuel centers. The Kroger Co. was founded in 1883 and is based in Cincinnati, Ohio.