Performance Food Group (NYSE: PFGC) and Chefs’ Warehouse (NASDAQ:CHEF) are both retail/wholesale companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, dividends, profitability, institutional ownership and valuation.
Insider & Institutional Ownership
95.3% of Performance Food Group shares are owned by institutional investors. Comparatively, 91.7% of Chefs’ Warehouse shares are owned by institutional investors. 3.7% of Performance Food Group shares are owned by company insiders. Comparatively, 20.6% of Chefs’ Warehouse shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Performance Food Group has a beta of 0.29, indicating that its stock price is 71% less volatile than the S&P 500. Comparatively, Chefs’ Warehouse has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500.
This table compares Performance Food Group and Chefs’ Warehouse’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Performance Food Group||1.00%||15.76%||4.02%|
This is a breakdown of recent ratings and recommmendations for Performance Food Group and Chefs’ Warehouse, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Performance Food Group||0||3||5||0||2.63|
Performance Food Group currently has a consensus target price of $35.43, indicating a potential upside of 1.08%. Chefs’ Warehouse has a consensus target price of $27.50, indicating a potential downside of 0.90%. Given Performance Food Group’s higher possible upside, equities analysts plainly believe Performance Food Group is more favorable than Chefs’ Warehouse.
Earnings and Valuation
This table compares Performance Food Group and Chefs’ Warehouse’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Performance Food Group||$16.76 billion||0.22||$96.30 million||$1.24||28.27|
|Chefs’ Warehouse||$1.30 billion||0.61||$14.36 million||$0.44||63.07|
Performance Food Group has higher revenue and earnings than Chefs’ Warehouse. Performance Food Group is trading at a lower price-to-earnings ratio than Chefs’ Warehouse, indicating that it is currently the more affordable of the two stocks.
Performance Food Group beats Chefs’ Warehouse on 8 of the 14 factors compared between the two stocks.
About Performance Food Group
Performance Food Group Company, through its subsidiaries, markets and distributes food and food-related products in the United States. It operates in three operating segments: Performance Foodservice, PFG Customized, and Vistar. The company offers a range of frozen foods, such as meats, fully prepared appetizers and entrees, fruits, vegetables, and desserts; canned and dry foods; fresh meats; dairy products; beverage products; imported specialties; fresh produce; and candy, snack, and other products, as well as seafood products, shortenings and oils, baked goods, and salad dressings. It also supplies various non-food items, such as paper products, including pizza boxes, disposable napkins, plates, and cups; tableware comprising chinaware and silverware; cookware consisting of pots, pans, and utensils; restaurant and kitchen equipment and supplies; and cleaning supplies. In addition, the company provides value-added services related to foodservice distribution, such as providing customers with electronic order-taking, payment, and other Internet based services; and various reports and other data, menu planning advice, food safety training, and assistance in inventory control, as well as access to various third-party services designed to add value to its customers' businesses. It serves street and chain restaurants, schools, business and industry locations, hospitals, vending distributors, office coffee service distributors, big box retailers, and theaters, as well as franchises and other institutional customers. Performance Food Group Company was founded in 2002 and is headquartered in Richmond, Virginia.
About Chefs’ Warehouse
The Chefs' Warehouse, Inc., together with its subsidiaries, distributes specialty food products in the United States and Canada. Its product portfolio includes approximately 48,000 stock-keeping units comprising specialty food products, such as artisan charcuterie, specialty cheeses, unique oils and vinegars, truffles, caviar, chocolate, and pastry products. The company also offers a line of center-of-the-plate products, including custom cut beef, seafood, and hormone-free poultry, as well as food products, such as cooking oils, butter, eggs, milk, and flour. It serves menu-driven independent restaurants, fine dining establishments, country clubs, hotels, caterers, culinary schools, bakeries, patisseries, chocolatiers, cruise lines, casinos, and specialty food stores. The company markets its center-of-the-plate products directly to consumers through a mail and e-commerce platform. The Chefs' Warehouse, Inc. was founded in 1985 and is headquartered in Ridgefield, Connecticut.
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