Financial Contrast: US Foods (NYSE:USFD) and Dingdong (Cayman) (NYSE:DDL)

Dingdong (Cayman) (NYSE:DDL) and US Foods (NYSE:USFD) are both consumer staples companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, profitability, risk, institutional ownership, dividends, valuation and earnings.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Dingdong (Cayman) and US Foods, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dingdong (Cayman)	0	2	0	0	2.00
US Foods	0	4	10	1	2.80

US Foods has a consensus target price of $115.31, suggesting a potential upside of 6.35%. Given US Foods’ stronger consensus rating and higher probable upside, analysts clearly believe US Foods is more favorable than Dingdong (Cayman).

Earnings and Valuation

This table compares Dingdong (Cayman) and US Foods”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dingdong (Cayman)	$3.42 billion	0.12	$31.70 million	$0.36	4.90
US Foods	$39.42 billion	0.59	$676.00 million	$3.58	30.29

US Foods has higher revenue and earnings than Dingdong (Cayman). Dingdong (Cayman) is trading at a lower price-to-earnings ratio than US Foods, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

24.7% of Dingdong (Cayman) shares are owned by institutional investors. Comparatively, 98.8% of US Foods shares are owned by institutional investors. 29.8% of Dingdong (Cayman) shares are owned by insiders. Comparatively, 0.7% of US Foods shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Dingdong (Cayman) and US Foods’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dingdong (Cayman)	6.39%	35.81%	5.90%
US Foods	1.97%	21.37%	6.49%

Risk & Volatility

Dingdong (Cayman) has a beta of 0.52, indicating that its share price is 48% less volatile than the S&P 500. Comparatively, US Foods has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500.

Summary

US Foods beats Dingdong (Cayman) on 12 of the 15 factors compared between the two stocks.

About Dingdong (Cayman)

Dingdong (Cayman) Limited operates Dingdong Maicai, an online grocery platform in China. Through its mobile app, the company sells fresh produce, meat, seafood, prepared foods, and other groceries, with delivery fulfilled through a network of local warehouses. Founded in 2017, Dingdong has focused on serving consumers in Chinese cities, particularly in eastern China. The company was founded by Liang Changlin, who has served as its chairman and chief executive officer.

About US Foods

US Foods Holding Corp. is a foodservice distributor that supplies restaurants and other foodservice businesses across the United States. Its customers include independent restaurants, healthcare and senior-care facilities, hotels, educational institutions, and government organizations. The company distributes a broad range of products, including fresh and frozen foods, meat, seafood, produce, dairy, beverages, and nonfood supplies. It also offers services and digital tools intended to help customers manage menus, purchasing, and kitchen operations.