One significant driver contributing to the U.S. food and grocery retail market growth is technological advancements and the adoption of ethical practices. Retails are using AI-powered inventory management systems and launching mobile apps to improve customer satisfaction. The U.S. food and grocery retailing market value is projected to grow at a CAGR of 3.3% by 2034.
Additionally, increasing health consciousness and varied healthier food options are other trends that are driving the demand for organic, natural, and functional foods. Further increasing environmental concerns are prompting consumers to seek environmentally friendly options in the food and grocery retail industry, which is expected to drive the industry.
Against this backdrop, let’s compare two established regional grocer stocks to analyze which stock is a smarter buy: Weis Markets, Inc. (WMK) and Ingles Markets, Incorporated (IMKTA).
The Case for Weis Markets, Inc. Stock
Valued at $1.91 billion by market cap, Weis Markets, Inc. (WMK) engages in the retail sale of food through a chain of supermarkets in Pennsylvania and surrounding states.
WMK has gained 9.9% over the past six months to close the last trading session at $71.17.
In terms of the trailing-12-month ROTA, WMK’s 4.63% is 14% higher than the 4.06% industry average. Likewise, its 2.38x trailing-12-month asset turnover ratio is 170.5% higher than the industry average of 0.88x.
WMK’s net sales for the fiscal third quarter (ended September 28, 2024) increased 2.2% year-over-year to $1.19 billion. Its gross profit increased by 1.9% year-over-year to $291.14 million. The company’s net income rose 11.3% from the prior-year quarter to $25.84 million, while its earnings per share came in at $0.96, up 11.6% year-over-year.
WMK’s POWR Ratings reflect bright prospects. It has an overall rating of A, which translates to a Strong Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
WMK is ranked #6 out of 35 stocks in the Grocery/Big Box Retailers industry. It has an A grade for Stability and a B for Quality and Value. To see WMK’s Momentum, Sentiment, and Growth ratings, click here.
The Case for Ingles Markets, Incorporated Stock
Valued at $1.25 billion by market cap, Ingles Markets, Incorporated (IMKTA) operates a chain of supermarkets in the southeast United States. It offers food products, including grocery, meat, and dairy products; produce frozen food and other perishables; and non-food products, including fuel centers, pharmacies, health and beauty care products, general merchandise, and private label items.
IMKTA has gained 1.3% intra-day to close the last trading session at $65.56.
In terms of the trailing-12-month CAPEX/Sales, IMKTA’s 3.40% is 8.7% higher than the 3.13% industry average. However, its 0.38% trailing-12-month levered FCF margin is 93.4% lower than the industry average of 5.79%.
IMKTA’s net sales for the fourth quarter that ended December 28, 2024, were reported at $1.29 billion. The company’s net income and earnings per common share class A came in at $16.59 million and $0.87, respectively.
IMKTA’s mixed fundamentals are reflected in its POWR Ratings. The stock has an overall C rating, translating to a Neutral in our proprietary rating system.
IMKTA has a C grade in Momentum, Stability, Sentiment, and Quality. It is ranked #25 in the same industry.
Click here for the additional POWR Ratings for IMKTA (Growth and Value).
Weis Markets vs. Ingles Markets: Which Regional Grocer Is a Smarter Buy?
The regional grocery industry in 2025 is poised for significant transformation, influenced by evolving consumer behaviors, technological advancements, and competitive dynamics.
Leading regional grocer companies like WMK and IMKTA stand to capitalize on the optimistic industry outlook. However, WMK’s higher profitability and promising near-term outlook favor it as the better stock pick.
Our research shows that the odds of success increase when one invests in stocks with an Overall Rating of Strong Buy or Buy. View all the top-rated stocks in the Grocery/Big Box Retailers industry here.
What To Do Next?
Get your hands on this special report with 3 low priced companies with tremendous upside potential even in today’s volatile markets:
3 Stocks to DOUBLE This Year >
WMK shares were trading at $70.62 per share on Tuesday afternoon, down $0.21 (-0.30%). Year-to-date, WMK has gained 4.28%, versus a 4.05% rise in the benchmark S&P 500 index during the same period.
About the Author: Nidhi Agarwal
Nidhi is passionate about the capital market and wealth management, which led her to pursue a career as an investment analyst. She holds a bachelor's degree in finance and marketing and is pursuing the CFA program. Her fundamental approach to analyzing stocks helps investors identify the best investment opportunities.
Weis Markets vs. Ingles Markets: Which Regional Grocer Is a Smarter Buy? StockNews.com
