Dingdong (Cayman) (NYSE:DDL) versus Village Super Market (NASDAQ:VLGEA) Critical Review

Village Super Market (NASDAQ:VLGEA) and Dingdong (Cayman) (NYSE:DDL) are both small-cap consumer staples companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, risk, earnings, institutional ownership, analyst recommendations, profitability and dividends.

Volatility and Risk

Village Super Market has a beta of 0.45, suggesting that its stock price is 55% less volatile than the S&P 500. Comparatively, Dingdong (Cayman) has a beta of 0.48, suggesting that its stock price is 52% less volatile than the S&P 500.

Profitability

This table compares Village Super Market and Dingdong (Cayman)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Village Super Market	2.27%	10.80%	5.40%
Dingdong (Cayman)	2.19%	47.37%	7.61%

Earnings & Valuation

This table compares Village Super Market and Dingdong (Cayman)”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Village Super Market	$2.32 billion	0.28	$56.38 million	$3.68	11.75
Dingdong (Cayman)	$3.42 billion	0.15	$31.70 million	$0.36	5.96

Village Super Market has higher earnings, but lower revenue than Dingdong (Cayman). Dingdong (Cayman) is trading at a lower price-to-earnings ratio than Village Super Market, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

39.0% of Village Super Market shares are owned by institutional investors. Comparatively, 24.7% of Dingdong (Cayman) shares are owned by institutional investors. 59.1% of Village Super Market shares are owned by insiders. Comparatively, 29.8% of Dingdong (Cayman) shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Village Super Market and Dingdong (Cayman), as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Village Super Market	0	0	1	0	3.00
Dingdong (Cayman)	0	2	0	0	2.00

Summary

Village Super Market beats Dingdong (Cayman) on 9 of the 13 factors compared between the two stocks.

About Village Super Market

Village Super Market, Inc. operates a chain of supermarkets in the United States. The company offers grocery, meat, produce, dairy, deli, seafood, prepared foods, and bakery and frozen foods. It also provides non-food products, including health and beauty care, general merchandise, liquor, and pharmacy products through retail and online stores. Village Super Market, Inc. was founded in 1937 and is based in Springfield, New Jersey.

About Dingdong (Cayman)

Dingdong (Cayman) Limited operates an e-commerce company in China. The company offers fresh groceries, including vegetables, meat and eggs, fruits, and seafood; prepared food, and other food products, such as baked goods, dairy, seasonings, beverages, instant food, oil, and snacks. It offers its products through traditional offline, as well as online channels through Dingdong Fresh app, mini-programs, and third-party platforms. Dingdong (Cayman) Limited was founded in 2017 and is headquartered in Shanghai, China.