Financial Contrast: United Natural Foods (NYSE:UNFI) versus Performance Food Group (NYSE:PFGC)

United Natural Foods (NYSE:UNFI) and Performance Food Group (NYSE:PFGC) are both consumer staples companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, profitability, earnings, institutional ownership, analyst recommendations and risk.

Profitability

This table compares United Natural Foods and Performance Food Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
United Natural Foods	0.27%	10.51%	2.28%
Performance Food Group	0.53%	15.15%	3.87%

Earnings & Valuation

This table compares United Natural Foods and Performance Food Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
United Natural Foods	$31.15 billion	0.09	$84.00 million	$1.34	34.22
Performance Food Group	$67.84 billion	0.23	$359.30 million	$2.29	42.83

Performance Food Group has higher revenue and earnings than United Natural Foods. United Natural Foods is trading at a lower price-to-earnings ratio than Performance Food Group, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

United Natural Foods has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500. Comparatively, Performance Food Group has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for United Natural Foods and Performance Food Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United Natural Foods	0	7	2	0	2.22
Performance Food Group	0	2	11	0	2.85

United Natural Foods currently has a consensus target price of $52.00, indicating a potential upside of 13.41%. Performance Food Group has a consensus target price of $126.00, indicating a potential upside of 28.46%. Given Performance Food Group’s stronger consensus rating and higher possible upside, analysts clearly believe Performance Food Group is more favorable than United Natural Foods.

Insider and Institutional Ownership

87.6% of United Natural Foods shares are held by institutional investors. Comparatively, 96.9% of Performance Food Group shares are held by institutional investors. 2.4% of United Natural Foods shares are held by company insiders. Comparatively, 2.1% of Performance Food Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Performance Food Group beats United Natural Foods on 12 of the 14 factors compared between the two stocks.

About United Natural Foods

United Natural Foods, Inc., together with its subsidiaries, distributes natural, organic, specialty, produce, and conventional grocery and non-food products in the United States and Canada. It operates in two segments, Wholesale and Retail. The company offers grocery and general merchandise, produce, perishables and frozen foods, wellness and personal care items, and bulk and foodservice products. It also provides nuts, dried fruit, seeds, trail mixes, granola, natural and organic snack items, and confections under the Woodstock Farms Manufacturing name; organic, non-GMO project verified, and specialty food and non-food items under the Blue Marble brand name; pet food under the WILD HARVEST brand name; and various products under the ESSENTIAL EVERYDAY, SHOPPERS VALUE, Field Day, EQUALINE, CULINARY CIRCLE, and STONE RIDGE CREAMERY brand names. In addition, the company provides home, health and beauty care, and pharmacy products, as well as private label products through a network of Cub Foods and Shoppers retail grocery stores; and retail store support, pricing strategy, shelf and planogram management, advertising, couponing, ecommerce, consumer convenience, store design, equipment sourcing, electronic payments processing, network and data hosting, point-of-sale hardware and software, automation tools, sustainability, and administrative back-office solution services. Further, it offers consumer and trade marketing programs, and programs to support suppliers in understanding its markets. The company serves chains, independent retailers, and supernatural chains, as well as foodservice, ecommerce, conventional military business, and other sales customers. United Natural Foods, Inc. was founded in 1976 and is headquartered in Providence, Rhode Island.

About Performance Food Group

Performance Food Group Company, through its subsidiaries, markets and distributes food and food-related products in the United States. It operates through three segments: Foodservice, Vistar, and Convenience. The company offers a range of frozen foods, groceries, candy, snacks, beverages, cigarettes, and other tobacco products; beef, pork, poultry, and seafood; and health and beauty care products. It also sells disposables, cleaning and kitchen supplies, and related products. In addition, the company offers value-added services, such as product selection and procurement, menu development, and operational strategy. It serves independent and chain restaurants, schools, business and industry locations, hospitals, vending distributors, office coffee service distributors, retailers, convenience stores, theaters, hospitality providers, concessionaires, airport gift shops, college bookstores, corrections facilities, and impulse locations, as well as franchises and other institutional customers. Performance Food Group Company was founded in 1885 and is headquartered in Richmond, Virginia.