Critical Comparison: Core-Mark (NASDAQ:CORE) vs. AMCON Distributing (NASDAQ:DIT)

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Core-Mark (NASDAQ:CORE) and AMCON Distributing (NYSE:DIT) are both small-cap business services companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, profitability, risk and earnings.

Earnings & Valuation

This table compares Core-Mark and AMCON Distributing’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Core-Mark $16.67 billion 0.07 $57.70 million $1.69 16.23
AMCON Distributing $1.39 billion 0.03 $3.20 million N/A N/A

Core-Mark has higher revenue and earnings than AMCON Distributing.

Profitability

This table compares Core-Mark and AMCON Distributing’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Core-Mark 0.36% 13.85% 4.12%
AMCON Distributing 0.17% 4.01% 1.55%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Core-Mark and AMCON Distributing, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Core-Mark 0 0 3 0 3.00
AMCON Distributing 0 0 0 0 N/A

Core-Mark currently has a consensus price target of $32.33, suggesting a potential upside of 17.88%. Given Core-Mark’s higher possible upside, analysts plainly believe Core-Mark is more favorable than AMCON Distributing.

Risk and Volatility

Core-Mark has a beta of 0.43, suggesting that its share price is 57% less volatile than the S&P 500. Comparatively, AMCON Distributing has a beta of 0.27, suggesting that its share price is 73% less volatile than the S&P 500.

Insider & Institutional Ownership

91.6% of Core-Mark shares are held by institutional investors. Comparatively, 10.5% of AMCON Distributing shares are held by institutional investors. 2.1% of Core-Mark shares are held by insiders. Comparatively, 66.5% of AMCON Distributing shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Core-Mark pays an annual dividend of $0.48 per share and has a dividend yield of 1.7%. AMCON Distributing pays an annual dividend of $0.72 per share and has a dividend yield of 1.1%. Core-Mark pays out 28.4% of its earnings in the form of a dividend. AMCON Distributing has raised its dividend for 1 consecutive years.

Summary

Core-Mark beats AMCON Distributing on 12 of the 15 factors compared between the two stocks.

About Core-Mark

Core-Mark Holding Company, Inc. distributes packaged consumer products to the convenience retail industry. The company sells and distributes food products, including candies, snacks, groceries, and beverages; fresh products, such as sandwiches, juices, salads, produce, dairy, and bread; and non-food products comprising cigars, tobacco, alternative nicotine products, health and beauty care products, and general merchandise and equipment. Its customers include traditional convenience stores, such as national and super-regional convenience store operators, as well as independently owned convenience stores. In addition, the company's alternative outlet customers include various store formats, which comprise grocery stores, drug stores, mass merchants, liquor stores, cigarette and tobacco shops, hotel gift shops, military exchanges, college and corporate campuses, casinos, hardware stores, airport concessions and other specialty and small format stores that carry convenience products. It provides its products to 42,000 customer locations through a network of 32 distribution centers in the United States and Canada. The company was founded in 1888 and is headquartered in Westlake, Texas.

About AMCON Distributing

AMCON Distributing Company, together with its subsidiaries, engages in the wholesale distribution of consumer products in the Central, Rocky Mountain, and Mid-South regions of the United States. It operates in two segments, Wholesale Distribution and Retail Health Food. The Wholesale Distribution segment distributes consumer products, including cigarettes and tobacco products, candy and other confectionery, beverages, groceries, paper products, health and beauty care products, frozen and refrigerated products, and institutional foodservice products. It serves retailers, such as convenience stores, discount and general merchandise stores, grocery stores, drug stores, liquor stores, tobacco shops, and gas stations; and institutional customers, including restaurants and bars, schools, and sports complexes, as well as other wholesalers. This segment also markets private label lines of water, candy products, batteries, and other products. The Retail Health Food segment is involved in the retail of natural, organic, and specialty foods consisting of produce, baked goods, frozen foods, nutritional supplements, personal care items, and general merchandise. As of November 8, 2019, it operated 22 retail health food stores under the Chamberlin's Natural Foods, Akin's Natural Foods, and Earth Origins Market brands. AMCON Distributing Company was founded in 1981 and is based in Omaha, Nebraska.

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