Head-To-Head Review: Woolworths Group (OTCMKTS:WOLWF) versus DFI Retail Group (OTCMKTS:DFILF)

DFI Retail Group (OTCMKTS:DFILF) and Woolworths Group (OTCMKTS:WOLWF) are both consumer defensive companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, dividends, analyst recommendations, earnings and profitability.

Profitability

This table compares DFI Retail Group and Woolworths Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DFI Retail Group	N/A	N/A	N/A
Woolworths Group	N/A	N/A	N/A

Insider & Institutional Ownership

11.9% of DFI Retail Group shares are held by institutional investors. Comparatively, 14.5% of Woolworths Group shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for DFI Retail Group and Woolworths Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DFI Retail Group	0	0	0	0	0.00
Woolworths Group	0	0	1	0	3.00

Woolworths Group has a consensus target price of $37.00, indicating a potential upside of 38.78%. Given Woolworths Group’s stronger consensus rating and higher possible upside, analysts plainly believe Woolworths Group is more favorable than DFI Retail Group.

Dividends

DFI Retail Group pays an annual dividend of $0.17 per share and has a dividend yield of 3.9%. Woolworths Group pays an annual dividend of $1.36 per share and has a dividend yield of 5.1%. DFI Retail Group pays out 44.2% of its earnings in the form of a dividend. Woolworths Group pays out 69.5% 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.

Earnings and Valuation

This table compares DFI Retail Group and Woolworths Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DFI Retail Group	N/A	N/A	N/A	$0.37	11.21
Woolworths Group	N/A	N/A	N/A	$1.96	13.63

DFI Retail Group is trading at a lower price-to-earnings ratio than Woolworths Group, indicating that it is currently the more affordable of the two stocks.

Summary

Woolworths Group beats DFI Retail Group on 7 of the 8 factors compared between the two stocks.

About DFI Retail Group

DFI Retail Group Holdings Limited operates as a retailer in Asia. The company operates through five segments: Food, Convenience, Health and Beauty, Home Furnishings, Restaurants, and Other Retailing. The company primarily operates grocery stores under the Wellcome, Yonghui, CS Fresh, Market Place, Giant, Hero, Cold Storage, Mercato, San Miu, Jasons, and Lucky brands; and convenience stores under the 7-Eleven brand. It also operates health and beauty stores under the Mannings, Guardian, and GNC brands; and home furnishings stores under the IKEA brand, as well as restaurants under the Maxim’s brand. The company was formerly known as Dairy Farm International Holdings Limited and changed its name to DFI Retail Group Holdings Limited in May 2022. The company was incorporated in 1886 and is based in Quarry Bay, Hong Kong. DFI Retail Group Holdings Limited is a subsidiary of Jardine Strategic Limited.

About Woolworths Group

Woolworths Group Limited operates retail stores in Australia and New Zealand. It operates through Australian Food, Australian B2B, New Zealand Food, BIG W, and Other segments. The Australian Food segment procures and resells food and related products, and provides services to customers in Australia. The Australian B2B segment engages in procurement and distribution of food and related products for resale to other businesses, as well as provision of supply chain services to business customers in Australia. The New Zealand Food segment is involved in the procurement and resale of food and drinks, and provides services to retail customers in New Zealand. BIG W segment procures and resells discount general merchandise products to customers in Australia. The Other segment operates Quantium and MyDeal retail stores The company was formerly known as Woolworths Limited and changed its name to Woolworths Group Limited in December 2017. Woolworths Group Limited was incorporated in 1924 and is based in Bella Vista, Australia.