Weis Markets vs Grocery Outlet

This page compares Weis Markets Inc and Grocery Outlet Holding Corp., examining their business models, financial performance, and market context in a clear, accessible way. It presents neutral information to help readers understand how these retailers operate and compete. Educational content, not financial advice.

Comparison Snapshot

Key Financial Metrics

WMK

Metric

$1.68B

Market Cap

$937.21M

N/A

Potential Profit

54.56%

N/A

Analyst Rating

Hold

Investment Analysis

Weis Markets

WMK

Pros

Stable regional footprint centred on Pennsylvania under the Weis Markets banner, reducing direct national competition with larger supermarket chains.
ROE currently at 7.60%, notably improved from recent quarters and close to long-term historical average, reflecting solid recent profitability.
Diversified product mix, including pharmacy services, prepared meals, and fuel, bolsters in-store traffic and basket size versus basic grocery peers.

Considerations

Modest one-year total shareholder return of 5.17%, underperforming broader equity indices, suggesting limited share price momentum.
Entrenched in a highly competitive, low-margin sector with limited geographic expansion plans versus larger national retailers.
ROE and earnings growth remain constrained by intense competition and sector-wide cost inflation, potentially limiting future performance upside.

Grocery Outlet

Pros

Distinctive independent operator model and focus on opportunistic buying enable a differentiated, value-driven offering in a price-sensitive grocery market.
Gross margin above 30% signals strong merchandising and sourcing capabilities despite recent profitability challenges.
Relatively low price-to-sales ratio of 0.3x could appeal to value-oriented investors if earnings recovery materialises as projected.

Considerations

Recent net profit margin deeply negative amid a large one-off loss, with consensus questioning the pace and durability of any near-term margin rebound.
Rising labour and supply chain costs present persistent headwinds to profitability, with execution risks around cost control and expansion.
Shares trade well above some fundamental fair value estimates, reflecting market doubts about the achievability of analyst margin improvement targets.

About The Companies

Weis Markets (WMK)

Weis Markets, Inc. is a food retailer primarily operating in Pennsylvania and its neighbouring states. The company's stores offer a wide array of products, including groceries, dairy, frozen foods, meats, seafood, and fresh produce. A typical store also features a pharmacy, a deli with prepared foods, and a bakery. In some locations, customers can find beer, wine, and even fuel. Weis Markets stocks a mix of well-known national brands, local favourites, and its own private-label products, which include organic and gluten-free options. To attract and retain customers, the company uses a broad marketing strategy and a popular loyalty programme. An investment in a company like Weis Markets is an investment in the retail grocery sector, which can be competitive. As with any investment, its value can go down as well as up.

Grocery Outlet (GO)

Grocery Outlet Holding Corp (GO) is a US-based discount grocery retailer that buys surplus, close-to-expiry and opportunistic inventory and offers it to customers at lower prices. The company operates a mix of company-owned and independently operated locations, targeting value-conscious shoppers who favour bargains over uniform product assortments. With a market capitalisation around $1.5 billion, Grocery Outlet competes with traditional grocers, dollar stores and online grocery options. Key things for investors to know include the firm’s inventory-driven margin dynamics, sensitivity to consumer spending and food-price inflation, and the benefits and risks of its opportunistic buying model. Growth depends on store expansion and maintaining strong local merchandising, but revenue and profit can be lumpy as product availability shifts. This summary is educational only and not financial advice; retail stocks can be volatile and past performance does not guarantee future results. Consider your risk tolerance and seek personalised guidance if needed.

Which Baskets Do They Appear In?

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Which Baskets Do They Appear In?

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Weis Markets vs Grocery Outlet

Comparison Snapshot

Investment Analysis

Weis Markets

Pros

Considerations

Grocery Outlet

Pros

Considerations

About The Companies

Which Baskets Do They Appear In?

Which Baskets Do They Appear In?

Buy WMK or GO in Nemo

Zero Commission

Trusted & Regulated

6% Interest on Cash

Discover More Comparisons

Weis Markets vs Utz Brands

Weis Markets vs Universal

Weis Markets vs Vital Farms

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Comparison Snapshot

About The Companies