GO vs KR

For growth investors, Grocery Outlet Holding Corp.

(GO) is the stronger pick with 7. 3% revenue growth year-over-year, versus 0. 4% for The Kroger Co. (KR). The Kroger Co. (KR) offers the better valuation at 43. 5x trailing P/E (12. 8x forward), making it the more compelling value choice. Analysts rate The Kroger Co. (KR) a "Buy" — based on 44 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On forward P/E, The Kroger Co.

is actually cheaper at 12. 8x.

Over the past 5 years, The Kroger Co.

(KR) delivered a total return of +98. 7%, compared to -81. 1% for Grocery Outlet Holding Corp. (GO). Over 10 years, the gap is even starker: KR returned +115. 6% versus GO's -72. 5%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), The Kroger Co.

(KR) is the lower-risk stock at -0. 64β versus Grocery Outlet Holding Corp. 's 0. 62β — meaning GO is approximately -197% more volatile than KR relative to the S&P 500. On balance sheet safety, Grocery Outlet Holding Corp. (GO) carries a lower debt/equity ratio of 184% versus 4% for The Kroger Co. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Grocery Outlet Holding Corp.

(GO) is pulling ahead at 7. 3% versus 0. 4% for The Kroger Co. (KR). On earnings-per-share growth, the picture is similar: The Kroger Co. grew EPS -58. 0% year-over-year, compared to -675. 0% for Grocery Outlet Holding Corp.. Over a 3-year CAGR, GO leads at 9. 4% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

The Kroger Co.

(KR) is the more profitable company, earning 0. 7% net margin versus -4. 8% for Grocery Outlet Holding Corp. — meaning it keeps 0. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: KR leads at 1. 3% versus -4. 7% for GO. At the gross margin level — before operating expenses — GO leads at 30. 3%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, The Kroger Co.

(KR) trades at 12. 8x forward P/E versus 15. 7x for Grocery Outlet Holding Corp. — 2. 9x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for GO: 54. 1% to $12. 08.

In this comparison, KR (2.

0% yield) pays a dividend. GO does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, The Kroger Co.

(KR) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β -0. 64), 2. 0% yield, +115. 6% 10Y return). Both have compounded well over 10 years (KR: +115. 6%, GO: -72. 5%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Consumer Defensive sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

KR pays a dividend while GO does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.