Greggs vs US Foods Which Is a Smarter Choice?

Greggs plc is a popular British bakery chain known for its savory pastries and snacks. The company has been experiencing steady growth due to its expanding product range and convenient locations. On the other hand, US Foods Holdings Corp is one of the leading foodservice distributors in the United States, catering to restaurants, healthcare facilities, and other food establishments. Both companies operate in the food industry, but with different business models and customer bases.

Greggs or US Foods?

When comparing Greggs and US Foods, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Greggs and US Foods.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Greggs has a dividend yield of 2.84%, while US Foods has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Greggs reports a 5-year dividend growth of 0.00% year and a payout ratio of 75.53%. On the other hand, US Foods reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Greggs P/E ratio at 6.59 and US Foods's P/E ratio at 30.18. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Greggs P/B ratio is 1.83 while US Foods's P/B ratio is 3.77.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Greggs has seen a 5-year revenue growth of 4.19%, while US Foods's is 0.33%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Greggs's ROE at 26.79% and US Foods's ROE at 11.98%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $10.88 for Greggs and $71.70 for US Foods. Over the past year, Greggs's prices ranged from $10.29 to $16.37, with a yearly change of 59.01%. US Foods's prices fluctuated between $43.24 and $72.84, with a yearly change of 68.46%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.