Metro (OTCMKTS:MTTWF) vs. Albertsons Companies (NYSE:ACI) Critical Review

Albertsons Companies (NYSE:ACI) and Metro (OTCMKTS:MTTWF) are both consumer staples companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, risk, analyst recommendations and earnings.

Analyst Recommendations

This is a breakdown of current ratings for Albertsons Companies and Metro, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Albertsons Companies	4	8	5	0	2.06
Metro	0	0	0	0	0.00

Albertsons Companies presently has a consensus target price of $15.31, indicating a potential upside of 23.10%. Given Albertsons Companies’ stronger consensus rating and higher probable upside, equities analysts clearly believe Albertsons Companies is more favorable than Metro.

Earnings & Valuation

This table compares Albertsons Companies and Metro”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Albertsons Companies	$83.17 billion	0.07	$217.40 million	$0.08	155.44
Metro	N/A	N/A	N/A	N/A	N/A

Albertsons Companies has higher revenue and earnings than Metro.

Institutional & Insider Ownership

71.3% of Albertsons Companies shares are held by institutional investors. 1.2% of Albertsons Companies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Albertsons Companies and Metro’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Albertsons Companies	0.08%	45.59%	3.83%
Metro	N/A	N/A	N/A

Summary

Albertsons Companies beats Metro on 9 of the 9 factors compared between the two stocks.

About Albertsons Companies

Albertsons Companies, Inc., through its subsidiaries, engages in the operation of food and drug stores in the United States. The company’s food and drug retail stores offer grocery products, general merchandise, health and beauty care products, pharmacy, fuel, and other items and services. It also manufactures and processes food products for sale in stores. It operates stores under various banners, including Albertsons, Safeway, Vons, Pavilions, Randalls, Tom Thumb, Carrs, Jewel-Osco, Acme, Shaw’s, Star Market, United Supermarkets, Market Street, Haggen, Kings Food Markets, and Balducci’s Food Lovers Market; and pharmacies, in-store branded coffee shops, adjacent fuel centers, distribution centers, and manufacturing facilities, as well as various digital platforms. Albertsons Companies, Inc. was founded in 1860 and is headquartered in Boise, Idaho. Albertsons Companies, Inc. operates as a subsidiary of Albertsons Investor Holdings LLC.

About Metro

Metro AG operates as a food wholesale company in Germany and internationally. It operates bricks-and-mortar wholesale stores and delivery depots under the METRO, MAKRO, Classic Fine Foods, Pro à Pro, Aviludo, Pro a Pro Spain, Johan i Hallen & Bergfalk, and Rungis Express brand names serving hotels, restaurants, bars, cafés, catering companies, canteen operators, small grocery stores, and kiosks in Europe, Russia, and Asia, as well as online marketplace METRO MARKETS. The company also develops digital solutions; and offers food delivery services. In addition, it provides services in the areas of real estate, logistics, information technology, procurement, and advertising. The company was formerly known as METRO Wholesale & Food Specialist AG and changed its name to METRO AG in August 2017. Metro AG was founded in 1964 and is based in Düsseldorf, Germany.