Head to Head Survey: Metro (OTCMKTS:MTRAF) versus Seven & i (OTCMKTS:SVNDF)

Seven & i (OTCMKTS:SVNDF) and Metro (OTCMKTS:MTRAF) are both consumer defensive companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Valuation and Earnings

This table compares Seven & i and Metro”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Seven & i	N/A	N/A	N/A	$197.96	0.06
Metro	$15.74 billion	0.91	$727.05 million	$1.65	40.98

Metro has higher revenue and earnings than Seven & i. Seven & i is trading at a lower price-to-earnings ratio than Metro, indicating that it is currently the more affordable of the two stocks.

Dividends

Seven & i pays an annual dividend of $57.09 per share and has a dividend yield of 446.9%. Metro pays an annual dividend of $1.20 per share and has a dividend yield of 1.8%. Seven & i pays out 28.8% of its earnings in the form of a dividend. Metro pays out 72.7% 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. Seven & i is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

19.6% of Seven & i shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Seven & i and Metro, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Seven & i	0	0	0	0	0.00
Metro	0	1	3	0	2.75

Profitability

This table compares Seven & i and Metro’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Seven & i	N/A	N/A	N/A
Metro	4.44%	14.73%	7.20%

Summary

Metro beats Seven & i on 7 of the 11 factors compared between the two stocks.

About Seven & i

Seven & i Holdings Co., Ltd. operates convenience stores, superstores, department stores, supermarkets, and specialty stores. It operates through six segments: Domestic Convenience Store operations, Overseas Convenience Store Operations, Superstore Operations, Department and Specialty Store Operations, Financial Services, and Others. The company engages in the operation of convenience stores comprising directly managed corporate stores and franchised stores; retail business that provides daily life necessities, such as food and other daily necessities and dollar merchandise and services; banking, leasing, and credit card business; and real estate business. Seven & i Holdings Co., Ltd. was incorporated in 2005 and is headquartered in Tokyo, Japan.

About Metro

Metro Inc., through its subsidiaries, operates as a retailer, franchisor, distributor, and manufacturer in the food and pharmaceutical sectors in Canada. The company operates supermarkets, discount, neighborhood, and specialty stores that provide fresh and grocery products, baked goods, prepared food products, meats, dairy products, fruits and vegetables, frozen food products, bakery products, delicatessen items, and pastries. It also manufactures ready-to-eat meals, salads, dips, pastries, pies, breads, and cakes; generic drugs under Pro Doc trademark; and provides online grocery shopping services. In addition, the company offers its private label food products under Irresistibles, Selection, Our Harvest Best, Lucky Koi, Life Smart, Adonis, Phoenicia, and Premiere Moisson brands; and private label drug products comprising beauty and cosmetic products, over-the-counter medications, and personal care products, sold under the Personnelle brand name. It operates a network of food stores under various banners, including Metro, Metro Plus, Adonis, Super C, Marché Richelieu, Marché Ami, Première Moisson, Les 5 Saisons, and Food Basics, as well as drugstores primarily under the PJC Jean Coutu, PJC Santé, PJC Santé Beauté, Brunet, Brunet Plus, Brunet Clinique, Clini Plus, Metro Pharmacy, and Food Basics Pharmacy banners. The company was founded in 1947 and is headquartered in Montréal, Canada.