WallStSmart

Albertsons Companies (ACI)vsKroger Company (KR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Kroger Company generates 81% more annual revenue ($147.64B vs $81.72B). ACI leads profitability with a 107.0% profit margin vs 69.0%. ACI appears more attractively valued with a PEG of 1.49. KR earns a higher WallStSmart Score of 55/100 (C).

ACI

Buy

53

out of 100

Grade: C-

Growth: 3.3Profit: 7.5Value: 7.3Quality: 4.5
Piotroski: 2/9Altman Z: 3.04

KR

Buy

55

out of 100

Grade: C

Growth: 7.3Profit: 6.5Value: 8.7Quality: 5.3
Piotroski: 3/9Altman Z: 3.79
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ACISignificantly Overvalued (-69.3%)

Margin of Safety

-69.3%

Fair Value

$10.47

Current Price

$17.29

$6.82 premium

UndervaluedFair: $10.47Overvalued
KRUndervalued (+4.7%)

Margin of Safety

+4.7%

Fair Value

$72.07

Current Price

$73.20

$1.13 discount

UndervaluedFair: $72.07Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACI5 strengths · Avg: 9.4/10
P/E RatioValuation
11.2x10/10

Attractively priced relative to earnings

Profit MarginProfitability
107.0%10/10

Keeps 107 of every $100 in revenue as profit

Altman Z-ScoreHealth
3.0410/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
29.7%9/10

Every $100 of equity generates 30 in profit

Free Cash FlowQuality
$1.19B8/10

Generating 1.2B in free cash flow

KR5 strengths · Avg: 9.6/10
Profit MarginProfitability
69.0%10/10

Keeps 69 of every $100 in revenue as profit

Revenue GrowthGrowth
120.0%10/10

Revenue surging 120.0% year-over-year

EPS GrowthGrowth
50.1%10/10

Earnings expanding 50.1% YoY

Altman Z-ScoreHealth
3.7910/10

Safe zone — low bankruptcy risk

Free Cash FlowQuality
$1.80B8/10

Generating 1.8B in free cash flow

Areas to Watch

ACI4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
1.9%4/10

1.9% revenue growth

Operating MarginProfitability
2.9%3/10

Operating margin of 2.9%

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

EPS GrowthGrowth
-20.3%2/10

Earnings declined 20.3%

KR4 concerns · Avg: 3.0/10
PEG RatioValuation
1.774/10

Expensive relative to growth rate

Operating MarginProfitability
3.5%3/10

Operating margin of 3.5%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
48.4x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : ACI

The strongest argument for ACI centers on P/E Ratio, Profit Margin, Altman Z-Score. Profitability is solid with margins at 107.0% and operating margin at 2.9%. PEG of 1.49 suggests the stock is reasonably priced for its growth.

Bull Case : KR

The strongest argument for KR centers on Profit Margin, Revenue Growth, EPS Growth. Profitability is solid with margins at 69.0% and operating margin at 3.5%. Revenue growth of 120.0% demonstrates continued momentum.

Bear Case : ACI

The primary concerns for ACI are Revenue Growth, Operating Margin, Piotroski F-Score. Debt-to-equity of 6.17 is elevated, increasing financial risk.

Bear Case : KR

The primary concerns for KR are PEG Ratio, Operating Margin, Piotroski F-Score. A P/E of 48.4x leaves little room for execution misses.

Key Dynamics to Monitor

ACI profiles as a value stock while KR is a growth play — different risk/reward profiles.

KR carries more volatility with a beta of 0.59 — expect wider price swings.

KR is growing revenue faster at 120.0% — sustainability is the question.

KR generates stronger free cash flow (1.8B), providing more financial flexibility.

Bottom Line

KR scores higher overall (55/100 vs 53/100), backed by strong 69.0% margins and 120.0% revenue growth. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Albertsons Companies

CONSUMER DEFENSIVE · GROCERY STORES · USA

Albertsons Companies, Inc. participates in the pharmacy and food operation in the United States.

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Kroger Company

CONSUMER DEFENSIVE · GROCERY STORES · USA

The Kroger Company, or simply Kroger, is an American retail company founded by Bernard Kroger in 1883 in Cincinnati, Ohio.

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