Contrasting Ollie’s Bargain Outlet (NASDAQ:OLLI) & Ahold (OTCMKTS:ADRNY)

Ahold (OTCMKTS:ADRNY) and Ollie’s Bargain Outlet (NASDAQ:OLLI) are both consumer staples companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, institutional ownership, earnings and risk.

Analyst Recommendations

This is a breakdown of current recommendations for Ahold and Ollie’s Bargain Outlet, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ahold	0	2	0	3	3.20
Ollie’s Bargain Outlet	0	5	9	0	2.64

Ollie’s Bargain Outlet has a consensus price target of $144.00, suggesting a potential upside of 18.10%. Given Ollie’s Bargain Outlet’s higher probable upside, analysts plainly believe Ollie’s Bargain Outlet is more favorable than Ahold.

Profitability

This table compares Ahold and Ollie’s Bargain Outlet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ahold	2.02%	15.88%	4.71%
Ollie’s Bargain Outlet	8.74%	12.66%	8.20%

Valuation & Earnings

This table compares Ahold and Ollie’s Bargain Outlet”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ahold	$96.70 billion	0.38	$1.91 billion	€2.51	16.13
Ollie’s Bargain Outlet	$2.44 billion	3.06	$199.76 million	$3.45	35.34

Ahold has higher revenue and earnings than Ollie’s Bargain Outlet. Ahold is trading at a lower price-to-earnings ratio than Ollie’s Bargain Outlet, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

0.2% of Ahold shares are owned by institutional investors. 0.8% of Ollie’s Bargain Outlet shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Ahold has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500. Comparatively, Ollie’s Bargain Outlet has a beta of 0.41, indicating that its share price is 59% less volatile than the S&P 500.

Summary

Ollie’s Bargain Outlet beats Ahold on 8 of the 15 factors compared between the two stocks.

About Ahold

Koninklijke Ahold Delhaize N.V. operates retail food stores and e-commerce in the United States, Europe, and internationally. The company's stores offer produce, dairy, meat, deli, bakery, seafood, and frozen products; grocery, beer, and wine; floral, pet food, health and beauty care, kitchen and cookware, gardening tools, general merchandise articles, electronics, newspapers and magazines, tobacco, etc.; gasoline; and pharmacy products. It operates its supermarkets, convenience stores, and online stores under the Food Lion, Stop & Shop, The GIANT Company, Hannaford, Giant Food, FreshDirect, Albert Heijn, bol.com, Etos, Gall & Gall, Delhaize, Albert, Alfa Beta Vassilopoulos, Mega Image, Delhaize Serbia, Peapod Digital labs, and Retail Business Service brands. The company was formerly known as Koninklijke Ahold N.V. and changed its name to Koninklijke Ahold Delhaize N.V. in July 2016. Koninklijke Ahold Delhaize N.V. was founded in 1867 and is headquartered in Zaandam, the Netherlands.

About Ollie’s Bargain Outlet

Ollie’s Bargain Outlet Holdings, Inc. is a holding company, which engages in the retail of closeouts, excess inventory, and salvage merchandise. It offers overstocks, package changes, manufacturer refurbished goods, and irregulars. The company’s products include housewares, food, books and stationery, bed and bath, floor coverings, electronics and toys. Ollie’s Bargain Outlet Holdings was founded by Mark Butler, Mort Bernstein, Oliver Rosenberg and Harry Coverman on July 29, 1982, and is headquartered in Harrisburg, PA.