Analyzing iFresh (IFMK) & Kroger (NYSE:KR)

iFresh (NASDAQ:IFMK) and Kroger (NYSE:KR) are both retail/wholesale companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, risk, earnings, valuation, institutional ownership and dividends.

Volatility & Risk

iFresh has a beta of 2.41, indicating that its stock price is 141% more volatile than the S&P 500. Comparatively, Kroger has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500.

Earnings and Valuation

This table compares iFresh and Kroger’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
iFresh $126.88 million 0.13 -$790,000.00 ($0.06) -16.83
Kroger $122.66 billion 0.19 $1.91 billion $2.04 13.96

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

Institutional & Insider Ownership

0.8% of iFresh shares are held by institutional investors. Comparatively, 79.7% of Kroger shares are held by institutional investors. 80.7% of iFresh shares are held by company insiders. Comparatively, 1.1% of Kroger shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Kroger pays an annual dividend of $0.56 per share and has a dividend yield of 2.0%. iFresh does not pay a dividend. Kroger pays out 27.5% of its earnings in the form of a dividend. Kroger has raised its dividend for 10 consecutive years.

Analyst Recommendations

This is a summary of current recommendations and price targets for iFresh and Kroger, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
iFresh 0 0 0 0 N/A
Kroger 2 9 7 0 2.28

Kroger has a consensus price target of $31.56, indicating a potential upside of 10.82%. Given Kroger’s higher possible upside, analysts clearly believe Kroger is more favorable than iFresh.

Profitability

This table compares iFresh and Kroger’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
iFresh -5.09% -170.17% -13.40%
Kroger 2.99% 26.64% 5.15%

Summary

Kroger beats iFresh on 13 of the 16 factors compared between the two stocks.

About iFresh

iFresh Inc. operates a network of grocery supermarket chains in the north-eastern United States. The company's chains provide vegetables, seafood, meat, fruits, snacks, seasonings, and other products. It also distributes rice and rice products, and seasonings and spices, as well as assortment of noodles, frozen vegetables, frozen dumplings, and frozen seafood under the Family Elephant, Feiyan, Green Acre, Golden Smell, Redolent, Shuangdeng/Double Lantern, SeaStar, Huang Duan Xiang 1987, and I FRESH brands. In addition, the company offers its products through online shopping and delivery service for customers in suburban areas. It operates nine retail supermarkets; and two in-house wholesale businesses facilities. The company was founded in 1995 and is headquartered in Long Island City, New York.

About Kroger

The Kroger Co., together with its subsidiaries, operates as a retailer in the United States. It also manufactures and processes food products for sale in its supermarkets. The company operates supermarkets, multi-department stores, jewelry stores, and convenience stores. Its combination food and drug stores offer natural food and organic sections, pharmacies, general merchandise, pet centers, fresh seafood, and organic produce; multi-department stores provide general merchandise items, such as apparel, home fashion and furnishings, outdoor living, electronics, automotive products, toys, and fine jewelry; and price impact warehouse stores offer grocery, and health and beauty care items, as well as meat, dairy, baked goods, and fresh produce items. The company's marketplace stores comprise full-service grocery, pharmacy, health and beauty care departments, and perishable goods, as well as general merchandise, including apparel, home goods, and toys; and convenience stores comprise a limited assortment of staple food items and general merchandise, as well as sells fuel. It operates under the banner brands, such as Kroger, Ralphs, Fred Meyer, King Soopers, etc., as well as Simple Truth and Simple Truth Organic brands. As of March 8, 2018, the company operated 2,800 retail food stores under various banner names, as well as an online retail store. The Kroger Co. was founded in 1883 and is based in Cincinnati, Ohio.

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