Koninklijke Ahold Delhaize (OTCMKTS:AHODF) versus Seven & i (OTC:SVNDF) Critical Comparison

Koninklijke Ahold Delhaize (OTCMKTS:AHODF – Get Rating) and Seven & i (OTC:SVNDF – Get Rating) are both consumer defensive companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, profitability, institutional ownership, dividends and risk.

Dividends

Koninklijke Ahold Delhaize pays an annual dividend of C$0.40 per share and has a dividend yield of 1.2%. Seven & i pays an annual dividend of 57.09 per share and has a dividend yield of 127.9%. Koninklijke Ahold Delhaize pays out 60.1% of its earnings in the form of a dividend. Seven & i pays out 28.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Seven & i is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Koninklijke Ahold Delhaize and Seven & i’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Koninklijke Ahold Delhaize	N/A	N/A	N/A
Seven & i	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current recommendations and price targets for Koninklijke Ahold Delhaize and Seven & i, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Koninklijke Ahold Delhaize	0	2	2	0	2.50
Seven & i	1	0	0	0	1.00

Koninklijke Ahold Delhaize presently has a consensus price target of C$31.10, indicating a potential downside of 4.36%. Given Koninklijke Ahold Delhaize’s stronger consensus rating and higher probable upside, analysts clearly believe Koninklijke Ahold Delhaize is more favorable than Seven & i.

Institutional and Insider Ownership

29.4% of Koninklijke Ahold Delhaize shares are held by institutional investors. Comparatively, 19.6% of Seven & i shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Koninklijke Ahold Delhaize and Seven & i’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Koninklijke Ahold Delhaize	N/A	N/A	N/A	C$0.66	48.96
Seven & i	N/A	N/A	N/A	197.96	0.23

Seven & i is trading at a lower price-to-earnings ratio than Koninklijke Ahold Delhaize, indicating that it is currently the more affordable of the two stocks.

Summary

Koninklijke Ahold Delhaize beats Seven & i on 5 of the 8 factors compared between the two stocks.

About Koninklijke Ahold Delhaize

(Get Rating)

Koninklijke Ahold Delhaize NV engages in the management and operation of supermarkets and e-commerce business. It operates through the following segments: The U.S., Europe, Other Retail, and Global Support Office. The U.S. segment includes Stop & Shop, Food Lion, Giant & Martin’s, Hannaford, Giant Food and Peapod. The Europe segment is consisted of Albert Heijn, Etos, Gall & Gall, bol.com, Delhaize operations in Belgium and Luxembourg.The Other Retail segment handles the firm’s joint ventures. The Global Support Office segment represents global support office operations in the Netherlands, Belgium, Switzerland, and the United States. The company was founded in 1887 and is headquartered in Zaandam, the Netherlands.

About Seven & i

(Get Rating)

Seven & i Holdings Co., Ltd. engages in retail, food, financial, and IT businesses in Japan, North America, and internationally. It operates through seven segments: Domestic Convenience Store operations, Overseas Convenience Store Operations, Superstore Operations, Department Store Operations, Financial Services, Specialty Stores Operations, and Others. The company's Domestic Convenience Store Operations segment operates convenience stores comprising directly managed corporate stores and franchised stores. Its Overseas Convenience Store Operations segment engages in convenience store operation and gasoline retail businesses. The company's Superstore Operations segment operates retail business that provide daily life necessities, such as food and other daily necessities. Its Department Store Operations operates department stores that provide various merchandise products. The company's Financial Services segment offers banking, leasing, and credit card services. Its Specialty Store Operations segment operates specialty retail stores. The company's others segment engages in real estate and other businesses. It operates approximately 22,500 stores in Japan and 71,800 stores internationally. The company was incorporated in 2005 and is headquartered in Tokyo, Japan.