Ingles Markets (NASDAQ:IMKTA – Get Free Report) and Chefs’ Warehouse (NASDAQ:CHEF – Get Free Report) are both consumer staples companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, profitability and dividends.
Profitability
This table compares Ingles Markets and Chefs’ Warehouse’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ingles Markets | 1.92% | 6.30% | 4.01% |
| Chefs’ Warehouse | 2.09% | 16.95% | 5.19% |
Risk and Volatility
Ingles Markets has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500. Comparatively, Chefs’ Warehouse has a beta of 1.38, indicating that its stock price is 38% more volatile than the S&P 500.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ingles Markets | $5.33 billion | 0.29 | $83.59 million | $5.47 | 15.11 |
| Chefs’ Warehouse | $4.15 billion | 1.12 | $72.36 million | $2.10 | 54.39 |
Ingles Markets has higher revenue and earnings than Chefs’ Warehouse. Ingles Markets is trading at a lower price-to-earnings ratio than Chefs’ Warehouse, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent recommendations for Ingles Markets and Chefs’ Warehouse, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ingles Markets | 0 | 0 | 1 | 0 | 3.00 |
| Chefs’ Warehouse | 0 | 1 | 5 | 1 | 3.00 |
Chefs’ Warehouse has a consensus price target of $114.33, indicating a potential upside of 0.11%. Given Chefs’ Warehouse’s higher probable upside, analysts clearly believe Chefs’ Warehouse is more favorable than Ingles Markets.
Institutional & Insider Ownership
62.5% of Ingles Markets shares are owned by institutional investors. Comparatively, 91.5% of Chefs’ Warehouse shares are owned by institutional investors. 22.8% of Ingles Markets shares are owned by insiders. Comparatively, 11.1% of Chefs’ Warehouse shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Summary
Chefs’ Warehouse beats Ingles Markets on 10 of the 14 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.
About Chefs’ Warehouse
The Chefs’ Warehouse, Inc., together with its subsidiaries, distributes specialty food and center-of-the-plate products in the United States, the Middle East, and Canada. The company’s product portfolio includes specialty food products, such as artisan charcuterie, specialty cheeses, unique oils and vinegars, truffles, caviar, chocolate, and pastry products; and center-of-the-plate products consisting of custom cut beef, seafood, and hormone-free poultry, as well as broadline food products comprising cooking oils, butter, eggs, milk, and flour. The company serves menu-driven independent restaurants, fine dining establishments, country clubs, hotels, caterers, culinary schools, bakeries, patisseries, chocolatiers, cruise lines, casinos, and specialty food stores. It markets its center-of-the-plate products directly to consumers through a mail and e-commerce platform. The Chefs’ Warehouse, Inc. was founded in 1985 and is headquartered in Ridgefield, Connecticut.
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