Kroger (NYSE:KR) & Marks and Spencer Group (OTCMKTS:MAKSY) Financial Survey

Kroger (NYSE:KR) and Marks and Spencer Group (OTCMKTS:MAKSY) are both retail/wholesale companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, profitability, analyst recommendations and dividends.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Kroger and Marks and Spencer Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kroger	0	10	8	0	2.44
Marks and Spencer Group	0	1	0	2	3.33

Kroger presently has a consensus price target of $70.1579, indicating a potential downside of 5.66%. Given Kroger’s higher possible upside, research analysts clearly believe Kroger is more favorable than Marks and Spencer Group.

Valuation and Earnings

This table compares Kroger and Marks and Spencer Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kroger	$147.12 billion	0.33	$2.67 billion	$3.67	20.26
Marks and Spencer Group	$17.75 billion	0.53	$377.28 million	N/A	N/A

Kroger has higher revenue and earnings than Marks and Spencer Group.

Volatility & Risk

Kroger has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500. Comparatively, Marks and Spencer Group has a beta of 1.45, indicating that its share price is 45% more volatile than the S&P 500.

Institutional and Insider Ownership

80.9% of Kroger shares are held by institutional investors. 0.4% of Kroger shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Kroger and Marks and Spencer Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kroger	1.89%	34.71%	6.11%
Marks and Spencer Group	N/A	N/A	N/A

Dividends

Kroger pays an annual dividend of $1.28 per share and has a dividend yield of 1.7%. Marks and Spencer Group pays an annual dividend of $0.14 per share and has a dividend yield of 1.5%. Kroger pays out 34.9% of its earnings in the form of a dividend. Kroger has increased its dividend for 19 consecutive years. Kroger is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Kroger beats Marks and Spencer Group on 11 of the 16 factors compared between the two stocks.

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.

About Marks and Spencer Group

Marks and Spencer Group plc operates various retail stores. It operates through five segments: UK Clothing & Home, UK Food, International, Ocado, and All Other. The company offers protein deli and dairy; produce; ambient and in-store bakery; meals dessert and frozen; and hospitality and Food on the Move' products. The company also provides womenswear, menswear, lingerie, kids wear, and home products; financial services, including credit cards, payment solutions, insurances, savings, and loans; and renewable energy services. In addition, it invests in and develops real estate properties; operates international franchises; and provides its products online. The company also exports its products. The company was founded in 1884 and is headquartered in London, the United Kingdom.