US Foods vs Sysco Which Outperforms?

US Foods Holding Corp (USFD) and Sysco Corporation (SYY) are two of the leading foodservice distributors in the United States. Both companies play a crucial role in supplying food products to restaurants, healthcare facilities, educational institutions, and other foodservice establishments. Investors often compare the stocks of US Foods and Sysco to determine the better investment option. The two companies compete fiercely in the market, with differences in their size, geographical presence, product offerings, and financial performance. This comparison will examine the key factors that differentiate US Foods and Sysco stocks.

US Foods or Sysco?

When comparing US Foods and Sysco, 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 US Foods and Sysco.

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. US Foods has a dividend yield of -%, while Sysco has a dividend yield of 2.59%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. US Foods reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Sysco reports a 5-year dividend growth of 6.58% year and a payout ratio of 51.82%.

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 US Foods P/E ratio at 28.29 and Sysco's P/E ratio at 19.75. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. US Foods P/B ratio is 3.53 while Sysco's P/B ratio is 17.38.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, US Foods has seen a 5-year revenue growth of 0.33%, while Sysco's is 0.34%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with US Foods's ROE at 11.98% and Sysco's ROE at 90.60%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $67.23 for US Foods and $77.34 for Sysco. Over the past year, US Foods's prices ranged from $42.02 to $68.00, with a yearly change of 61.83%. Sysco's prices fluctuated between $66.87 and $82.89, with a yearly change of 23.96%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.