Critical Survey: Kroger (NYSE:KR) versus BBB Foods (NYSE:TBBB)

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

Valuation and Earnings

This table compares Kroger and BBB Foods”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kroger	$149.88 billion	0.30	$2.16 billion	$3.78	16.17
BBB Foods	$53.41 billion	0.06	-$17.30 million	N/A	N/A

Kroger has higher revenue and earnings than BBB Foods.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Kroger and BBB Foods, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kroger	0	6	7	1	2.64
BBB Foods	0	5	3	0	2.38

Kroger currently has a consensus target price of $64.31, indicating a potential upside of 5.18%. BBB Foods has a consensus target price of $30.57, indicating a potential upside of 5.67%. Given BBB Foods’ higher possible upside, analysts clearly believe BBB Foods is more favorable than Kroger.

Profitability

This table compares Kroger and BBB Foods’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kroger	1.85%	27.73%	6.35%
BBB Foods	N/A	N/A	N/A

Insider and Institutional Ownership

80.9% of Kroger shares are owned by institutional investors. Comparatively, 8.4% of BBB Foods shares are owned by institutional investors. 1.4% of Kroger shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Kroger beats BBB Foods on 11 of the 12 factors compared between the two stocks.

About Kroger

The Kroger Co. operates as a food and drug retailer in the United States. The company operates combination food and drug stores, multi-department stores, marketplace stores, and price impact warehouses. Its combination food and drug stores offer natural food and organic sections, pharmacies, general merchandise, pet centers, fresh seafood, and organic produce; and multi-department stores provide apparel, home fashion and furnishings, outdoor living, electronics, automotive products, and toys. The company’s marketplace stores offer full-service grocery, pharmacy, health and beauty care, and perishable goods, as well as general merchandise, including apparel, home goods, and toys; and price impact warehouse stores provide grocery, and health and beauty care items, as well as meat, dairy, baked goods, and fresh produce items. It also manufactures and processes food products for sale in its supermarkets and online; and sells fuel through fuel centers. The Kroger Co. was founded in 1883 and is based in Cincinnati, Ohio.

About BBB Foods

BBB Foods Inc., through its subsidiaries, operates a chain of grocery retail stores in Mexico. It offers household cleaning, personal hyenine, cosmetics and beauty, pharmacy, and general merchandise products, as well as jellies and desserts, foods and drinks, pet supplies, coffee, tea, chocolates, breads, dry and frozen foods, snacks and sweets, and toilet papers and napkins. The company also provides branded, private label, and spot products. It serves low-to-middle income households through online channels. BBB Foods Inc. was incorporated in 2004 and is headquartered in Mexico City, Mexico.