Reviewing Core-Mark (CORE) & Performance Food Group (PFGC)

Core-Mark (NASDAQ: CORE) and Performance Food Group (NYSE:PFGC) are both business services companies, but which is the better business? We will compare the two businesses based on the strength of their risk, profitability, earnings, dividends, institutional ownership, analyst recommendations and valuation.

Valuation and Earnings

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This table compares Core-Mark and Performance Food Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Core-Mark $15.69 billion 0.06 $33.50 million $1.00 21.71
Performance Food Group $16.76 billion 0.19 $96.30 million $1.24 24.73

Performance Food Group has higher revenue and earnings than Core-Mark. Core-Mark is trading at a lower price-to-earnings ratio than Performance Food Group, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

97.8% of Core-Mark shares are held by institutional investors. Comparatively, 94.9% of Performance Food Group shares are held by institutional investors. 2.0% of Core-Mark shares are held by company insiders. Comparatively, 3.7% of Performance Food Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Core-Mark has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500. Comparatively, Performance Food Group has a beta of 0.32, suggesting that its stock price is 68% less volatile than the S&P 500.

Dividends

Core-Mark pays an annual dividend of $0.40 per share and has a dividend yield of 1.8%. Performance Food Group does not pay a dividend. Core-Mark pays out 40.0% of its earnings in the form of a dividend.

Profitability

This table compares Core-Mark and Performance Food Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Core-Mark 0.21% 8.84% 2.99%
Performance Food Group 1.24% 15.69% 3.86%

Analyst Ratings

This is a breakdown of recent ratings for Core-Mark and Performance Food Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Core-Mark 0 3 3 1 2.71
Performance Food Group 0 5 4 0 2.44

Core-Mark currently has a consensus price target of $26.20, suggesting a potential upside of 20.68%. Performance Food Group has a consensus price target of $33.86, suggesting a potential upside of 10.39%. Given Core-Mark’s stronger consensus rating and higher possible upside, research analysts plainly believe Core-Mark is more favorable than Performance Food Group.

Summary

Performance Food Group beats Core-Mark on 10 of the 17 factors compared between the two stocks.

Core-Mark Company Profile

Core-Mark Holding Company, Inc. markets fresh and broad-line supply solutions to the convenience retail industry. The company sells and distributes various food/non-food products, including cigarettes, fast food, candies, snacks, groceries, fresh products, dairy products, breads, beverages, other tobacco products, general merchandise and equipment, and health and beauty care products. Its customers include traditional convenience stores, such as national and super-regional convenience store operators, as well as independently owned convenience stores; and alternative outlets, which include grocery stores, drug stores, big box or supercenter stores, liquor stores, cigarette and tobacco shops, hotel gift shops, military exchanges, college and corporate campuses, casinos, hardware stores, airport concessions, and other specialty and small format stores that carry convenience products. The company offers its products to 45,000 customer locations through a network of distribution centers in the United States and Canada. Core-Mark Holding Company, Inc. was founded in 1888 and is headquartered in South San Francisco, California.

Performance Food Group Company Profile

Performance Food Group Company, through its subsidiaries, markets and distributes food and food-related products. The Company operates through three segments: Performance Foodservice, PFG Customized and Vistar. The Performance Foodservice segment distributes a range of national brands, customer brands, and branded food and food-related products. It sells to independent or street, and multi-unit or chain, restaurants and other institutions. Its PFG Customized segment provides service to family and casual dining restaurant chains, and fast casual and quick service restaurant chains. Its Vistar segment specializes in distributing candy, snacks, beverages and other items nationally to the vending, office coffee service, theater, hospitality and other channels. Its products include a range of frozen foods, such as meats, fully prepared appetizers and entrees, and desserts; a range of canned and dry foods; fresh meats; dairy products; beverage products, and snack and other products.

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