ACI vs. KHC: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ACI and KHC, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
KHC’s market capitalization of 31.55 billion USD is significantly greater than ACI’s 12.63 billion USD, highlighting its more substantial market valuation.
With betas of 0.31 for ACI and 0.23 for KHC, both stocks show similar sensitivity to overall market movements.
| Symbol | ACI | KHC |
|---|---|---|
| Company Name | Albertsons Companies, Inc. | The Kraft Heinz Company |
| Country | US | US |
| Sector | Consumer Defensive | Consumer Defensive |
| Industry | Grocery Stores | Packaged Foods |
| CEO | Susan D. Morris | Carlos A. Abrams-Rivera |
| Price | 21.93 USD | 26.66 USD |
| Market Cap | 12.63 billion USD | 31.55 billion USD |
| Beta | 0.31 | 0.23 |
| Exchange | NYSE | NASDAQ |
| IPO Date | June 26, 2020 | July 6, 2015 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ACI and KHC by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
ACI
30.23%
Grocery Stores Industry
- Max
- 41.83%
- Q3
- 33.21%
- Median
- 17.57%
- Q1
- 4.85%
- Min
- -1.90%
ACI’s Return on Equity of 30.23% is on par with the norm for the Grocery Stores industry, indicating its profitability relative to shareholder equity is typical for the sector.
KHC
5.42%
Packaged Foods Industry
- Max
- 31.57%
- Q3
- 16.24%
- Median
- 8.30%
- Q1
- 3.79%
- Min
- -9.32%
KHC’s Return on Equity of 5.42% is on par with the norm for the Packaged Foods industry, indicating its profitability relative to shareholder equity is typical for the sector.
Return on Invested Capital
ACI
6.91%
Grocery Stores Industry
- Max
- 9.72%
- Q3
- 6.86%
- Median
- 5.47%
- Q1
- 3.42%
- Min
- 1.05%
In the upper quartile for the Grocery Stores industry, ACI’s Return on Invested Capital of 6.91% signifies a highly effective use of its capital to generate profits when compared to its peers.
KHC
5.97%
Packaged Foods Industry
- Max
- 18.26%
- Q3
- 11.05%
- Median
- 6.28%
- Q1
- 4.78%
- Min
- -3.45%
KHC’s Return on Invested Capital of 5.97% is in line with the norm for the Packaged Foods industry, reflecting a standard level of efficiency in generating profits from its capital base.
Net Profit Margin
ACI
1.19%
Grocery Stores Industry
- Max
- 5.53%
- Q3
- 3.00%
- Median
- 1.73%
- Q1
- 1.16%
- Min
- -1.36%
ACI’s Net Profit Margin of 1.19% is aligned with the median group of its peers in the Grocery Stores industry. This indicates its ability to convert revenue into profit is typical for the sector.
KHC
10.44%
Packaged Foods Industry
- Max
- 12.82%
- Q3
- 6.72%
- Median
- 4.53%
- Q1
- 2.61%
- Min
- -2.02%
A Net Profit Margin of 10.44% places KHC in the upper quartile for the Packaged Foods industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin
ACI
2.05%
Grocery Stores Industry
- Max
- 4.30%
- Q3
- 3.63%
- Median
- 2.32%
- Q1
- 1.32%
- Min
- 0.87%
ACI’s Operating Profit Margin of 2.05% is around the midpoint for the Grocery Stores industry, indicating that its efficiency in managing core business operations is typical for the sector.
KHC
6.20%
Packaged Foods Industry
- Max
- 19.80%
- Q3
- 10.83%
- Median
- 6.62%
- Q1
- 4.39%
- Min
- 1.79%
KHC’s Operating Profit Margin of 6.20% is around the midpoint for the Packaged Foods industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | ACI | KHC |
|---|---|---|
| Return on Equity (TTM) | 30.23% | 5.42% |
| Return on Assets (TTM) | 3.58% | 2.94% |
| Return on Invested Capital (TTM) | 6.91% | 5.97% |
| Net Profit Margin (TTM) | 1.19% | 10.44% |
| Operating Profit Margin (TTM) | 2.05% | 6.20% |
| Gross Profit Margin (TTM) | 27.06% | 34.56% |
Financial Strength
Current Ratio
ACI
0.90
Grocery Stores Industry
- Max
- 1.25
- Q3
- 1.20
- Median
- 1.00
- Q1
- 0.95
- Min
- 0.90
ACI’s Current Ratio of 0.90 falls into the lower quartile for the Grocery Stores industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
KHC
1.31
Packaged Foods Industry
- Max
- 4.91
- Q3
- 2.66
- Median
- 1.35
- Q1
- 1.02
- Min
- 0.45
KHC’s Current Ratio of 1.31 aligns with the median group of the Packaged Foods industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio
ACI
4.19
Grocery Stores Industry
- Max
- 4.19
- Q3
- 2.56
- Median
- 1.41
- Q1
- 0.87
- Min
- 0.12
ACI’s leverage is in the upper quartile of the Grocery Stores industry, with a Debt-to-Equity Ratio of 4.19. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
KHC
0.44
Packaged Foods Industry
- Max
- 2.61
- Q3
- 1.56
- Median
- 0.82
- Q1
- 0.36
- Min
- 0.00
KHC’s Debt-to-Equity Ratio of 0.44 is typical for the Packaged Foods industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio
ACI
3.59
Grocery Stores Industry
- Max
- 24.50
- Q3
- 16.36
- Median
- 5.08
- Q1
- 3.73
- Min
- -0.63
In the lower quartile for the Grocery Stores industry, ACI’s Interest Coverage Ratio of 3.59 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.
KHC
1.72
Packaged Foods Industry
- Max
- 12.62
- Q3
- 8.96
- Median
- 3.16
- Q1
- 1.69
- Min
- -3.36
KHC’s Interest Coverage Ratio of 1.72 is positioned comfortably within the norm for the Packaged Foods industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | ACI | KHC |
|---|---|---|
| Current Ratio (TTM) | 0.90 | 1.31 |
| Quick Ratio (TTM) | 0.22 | 0.81 |
| Debt-to-Equity Ratio (TTM) | 4.19 | 0.44 |
| Debt-to-Asset Ratio (TTM) | 0.53 | 0.24 |
| Net Debt-to-EBITDA Ratio (TTM) | 3.97 | 7.18 |
| Interest Coverage Ratio (TTM) | 3.59 | 1.72 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ACI and KHC. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
ACI
2.46%
Grocery Stores Industry
- Max
- 5.28%
- Q3
- 2.38%
- Median
- 1.48%
- Q1
- 0.26%
- Min
- 0.00%
With a Dividend Yield of 2.46%, ACI offers a more attractive income stream than most of its peers in the Grocery Stores industry, signaling a strong commitment to shareholder returns.
KHC
6.00%
Packaged Foods Industry
- Max
- 17.31%
- Q3
- 4.06%
- Median
- 2.28%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 6.00%, KHC offers a more attractive income stream than most of its peers in the Packaged Foods industry, signaling a strong commitment to shareholder returns.
Dividend Payout Ratio
ACI
30.78%
Grocery Stores Industry
- Max
- 4,966.68%
- Q3
- 30.78%
- Median
- 24.38%
- Q1
- 0.00%
- Min
- 0.00%
ACI’s Dividend Payout Ratio of 30.78% is within the typical range for the Grocery Stores industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
KHC
72.39%
Packaged Foods Industry
- Max
- 203.43%
- Q3
- 70.94%
- Median
- 16.83%
- Q1
- 0.00%
- Min
- 0.00%
KHC’s Dividend Payout Ratio of 72.39% is in the upper quartile for the Packaged Foods industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
Dividend at a Glance
| Symbol | ACI | KHC |
|---|---|---|
| Dividend Yield (TTM) | 2.46% | 6.00% |
| Dividend Payout Ratio (TTM) | 30.78% | 72.39% |
Valuation
Price-to-Earnings Ratio
ACI
13.26
Grocery Stores Industry
- Max
- 35.78
- Q3
- 21.80
- Median
- 18.09
- Q1
- 11.47
- Min
- 8.82
ACI’s P/E Ratio of 13.26 is within the middle range for the Grocery Stores industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
KHC
12.03
Packaged Foods Industry
- Max
- 38.86
- Q3
- 28.67
- Median
- 20.65
- Q1
- 13.95
- Min
- 3.16
In the lower quartile for the Packaged Foods industry, KHC’s P/E Ratio of 12.03 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
Forward P/E to Growth Ratio
ACI
17.35
Grocery Stores Industry
- Max
- 4.43
- Q3
- 3.62
- Median
- 2.13
- Q1
- 0.83
- Min
- 0.05
ACI’s Forward PEG Ratio of 17.35 is exceptionally high for the Grocery Stores industry. This suggests its stock price is very high relative to its expected earnings growth, signaling significant overvaluation risk.
KHC
6.69
Packaged Foods Industry
- Max
- 9.46
- Q3
- 4.68
- Median
- 1.99
- Q1
- 1.27
- Min
- 0.07
A Forward PEG Ratio of 6.69 places KHC in the upper quartile for the Packaged Foods industry. This suggests the stock is potentially expensive compared to its peers relative to its growth forecast, which may warrant caution.
Price-to-Sales Ratio
ACI
0.16
Grocery Stores Industry
- Max
- 0.69
- Q3
- 0.45
- Median
- 0.28
- Q1
- 0.22
- Min
- 0.14
In the lower quartile for the Grocery Stores industry, ACI’s P/S Ratio of 0.16 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
KHC
1.24
Packaged Foods Industry
- Max
- 2.51
- Q3
- 1.41
- Median
- 0.90
- Q1
- 0.65
- Min
- 0.18
KHC’s P/S Ratio of 1.24 aligns with the market consensus for the Packaged Foods industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio
ACI
3.75
Grocery Stores Industry
- Max
- 5.54
- Q3
- 4.47
- Median
- 2.48
- Q1
- 1.04
- Min
- 0.41
ACI’s P/B Ratio of 3.75 is within the conventional range for the Grocery Stores industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
KHC
0.65
Packaged Foods Industry
- Max
- 4.92
- Q3
- 3.32
- Median
- 2.11
- Q1
- 1.47
- Min
- 0.62
KHC’s P/B Ratio of 0.65 is in the lower quartile for the Packaged Foods industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
Valuation at a Glance
| Symbol | ACI | KHC |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 13.26 | 12.03 |
| Forward PEG Ratio (TTM) | 17.35 | 6.69 |
| Price-to-Sales Ratio (P/S, TTM) | 0.16 | 1.24 |
| Price-to-Book Ratio (P/B, TTM) | 3.75 | 0.65 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 16.85 | 10.43 |
| EV-to-EBITDA (TTM) | 7.58 | 18.80 |
| EV-to-Sales (TTM) | 0.33 | 2.01 |