WallStSmart

Grocery Outlet Holding Corp (GO)vsKroger Company (KR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Kroger Company generates 3022% more annual revenue ($147.64B vs $4.73B). KR leads profitability with a 0.7% profit margin vs -8.1%. KR earns a higher WallStSmart Score of 59/100 (C).

GO

Hold

36

out of 100

Grade: F

Growth: 4.0Profit: 2.5Value: 6.7Quality: 4.5
Piotroski: 4/9Altman Z: 1.69

KR

Buy

59

out of 100

Grade: C

Growth: 5.3Profit: 5.5Value: 6.0Quality: 5.0
Piotroski: 5/9Altman Z: 3.88
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GOUndervalued (+60.2%)

Margin of Safety

+60.2%

Fair Value

$24.61

Current Price

$8.56

$16.05 discount

UndervaluedFair: $24.61Overvalued
KRUndervalued (+10.9%)

Margin of Safety

+10.9%

Fair Value

$72.60

Current Price

$62.23

$10.37 discount

UndervaluedFair: $72.60Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GO1 strengths · Avg: 10.0/10
Price/BookValuation
1.0x10/10

Reasonable price relative to book value

KR4 strengths · Avg: 9.0/10
EPS GrowthGrowth
50.9%10/10

Earnings expanding 50.9% YoY

Altman Z-ScoreHealth
3.8810/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.638/10

Growing faster than its price suggests

Free Cash FlowQuality
$1.80B8/10

Generating 1.8B in free cash flow

Areas to Watch

GO4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
3.6%4/10

3.6% revenue growth

Altman Z-ScoreHealth
1.694/10

Distress zone — elevated risk

Market CapQuality
$947.68M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-47.3%2/10

ROE of -47.3% — below average capital efficiency

KR4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
1.2%4/10

1.2% revenue growth

Profit MarginProfitability
0.7%3/10

0.7% margin — thin

Operating MarginProfitability
3.4%3/10

Operating margin of 3.4%

P/E RatioValuation
42.0x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : GO

The strongest argument for GO centers on Price/Book.

Bull Case : KR

The strongest argument for KR centers on EPS Growth, Altman Z-Score, PEG Ratio. PEG of 0.63 suggests the stock is reasonably priced for its growth.

Bear Case : GO

The primary concerns for GO are Revenue Growth, Altman Z-Score, Market Cap. Debt-to-equity of 2.28 is elevated, increasing financial risk.

Bear Case : KR

The primary concerns for KR are Revenue Growth, Profit Margin, Operating Margin. A P/E of 42.0x leaves little room for execution misses. Debt-to-equity of 4.16 is elevated, increasing financial risk.

Key Dynamics to Monitor

GO profiles as a turnaround stock while KR is a value play — different risk/reward profiles.

GO carries more volatility with a beta of 0.67 — expect wider price swings.

GO is growing revenue faster at 3.6% — sustainability is the question.

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

Bottom Line

KR scores higher overall (59/100 vs 36/100). GO offers better value entry with a 60.2% margin of safety. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

Grocery Outlet Holding Corp

CONSUMER DEFENSIVE · GROCERY STORES · USA

Grocery Outlet Holding Corp. The company is headquartered in Emeryville, California.

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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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