Coles Group ASX:COL |
Woolworths Group ASX:WOW |
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Margins for both companies are very similar. |
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Woolworths has found recent times to be much more difficult. |
EPS has grown from 74cps to 78cps since 2019 to 2023. 5.4% |
EPS has fallen from 133cps to 126cps since 2019 to 2023. -5.3% |
Both companies appear to be offering some value at today’s prices. |
Woolworths has had the harder year but analysts believe it’s just a blip and hence their forward numbers suggest some upside from these levels. |
Observations
Since October 2019, Woolworths Group ASX:WOW shares have outperformed Coles Group ASX:COL shares by amazingly less than 1%. However, during that time it is Coles that has grown profits more. Coles also pays the higher dividend of the two. Coles also has the lower Price to earnings ratio. Based on all of that you would think Coles is the better buy. However, the market has always given a slight premium to Woolworths for some reason and so today it is Woolworths that is looking most undervalued compared to historical valuations. All in all, it is remarkable how similar both of these companies are. I guess when you’re part of a duopoly it’s best to maintain the status quo though, right?
Disclaimer: This information is provided purely for educational purposes. It takes no account of an individual’s personal financial circumstances and hence can in no way constitute financial advice. The above data may be subject to errors or inconsistencies for which the author takes no liability. It is imperative that all investors do their own research or if they need advice, seek it from a qualified financial adviser.
Coles vs Woolworths June 2024