RH (NYSE:RH) versus Albertsons Companies (NYSE:ACI) Financial Analysis

Albertsons Companies (NYSE:ACIGet Free Report) and RH (NYSE:RHGet Free Report) are both mid-cap consumer staples companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, risk, dividends, institutional ownership and profitability.

Risk & Volatility

Albertsons Companies has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500. Comparatively, RH has a beta of 2.21, suggesting that its share price is 121% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Albertsons Companies and RH, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Albertsons Companies 1 5 10 0 2.56
RH 3 7 10 0 2.35

Albertsons Companies presently has a consensus price target of $23.43, suggesting a potential upside of 31.13%. RH has a consensus price target of $259.69, suggesting a potential upside of 76.66%. Given RH’s higher possible upside, analysts plainly believe RH is more favorable than Albertsons Companies.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Albertsons Companies $80.39 billion 0.12 $958.60 million $1.69 10.57
RH $3.18 billion 0.87 $72.41 million $5.37 27.37

Albertsons Companies has higher revenue and earnings than RH. Albertsons Companies is trading at a lower price-to-earnings ratio than RH, indicating that it is currently the more affordable of the two stocks.

Profitability

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

Net Margins Return on Equity Return on Assets
Albertsons Companies 1.20% 36.39% 4.45%
RH 3.20% -113.58% 3.08%

Institutional and Insider Ownership

71.4% of Albertsons Companies shares are owned by institutional investors. Comparatively, 90.2% of RH shares are owned by institutional investors. 1.4% of Albertsons Companies shares are owned by insiders. Comparatively, 27.0% of RH shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

RH beats Albertsons Companies on 8 of the 13 factors compared between the two stocks.

About Albertsons Companies

(Get Free Report)

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 RH

(Get Free Report)

RH, together with its subsidiaries, operates as a retailer in the home furnishings market. The company offers products in various categories, including furniture, lighting, textiles, bathware, décor, outdoor and garden, baby, child, and teen furnishings. It provides its products through rh.com, rhbabyandchild.com, rhteen.com, rhmodern.com, and waterworks.com online channels, as well as operates RH Galleries, RH outlet stores, RH Guesthouse, and Waterworks showrooms in the United States, Canada, the United Kingdom, and Germany. The company was formerly known as Restoration Hardware Holdings, Inc. and changed its name to RH in January 2017. RH was incorporated in 2011 and is headquartered in Corte Madera, California.

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