Spartan Stores, Inc. (SPTN), Nash-Finch Company (NAFC): Food Distribution Sector Finding New Ways to Survive

However, the dividends set by the management after the merger agreement will harm the investors of Nash-Finch as their dividends would decline by 33.33% compared to the previous years. At the same time, it would be a bonus for the Spartan’s investors.

Moreover, Nash-Finch’s debt-to-equity ratio is significantly above the industry average which adds volatility to the company’s earnings, whereas Spartan’s ratio is below the industry average which makes this stock more attractive. So, I would make a buy recommendation only for Spartan.

Anderson has a very stable position as the company’s revenue growth and net income growth is considerably higher than the industry average. Its acquisition of Thompson will provide additional capacity to the company and thus, higher opportunities of generating more revenue. The company’s debt-to-equity ratio is slightly above the industry average. But the overall future prospects of the company are bright so I would recommend this stock.

usman iftikhar has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

The article Food Distribution Sector Finding New Ways to Survive originally appeared on Fool.com and is written by usman iftikhar.

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