ACI vs KR: Which Is the Better Buy in 2026?
Last updated August 2026
Short answer
ACI and KR are similarly sized, but ACI trades noticeably cheaper on forward earnings (6.18x vs 10.42x): the market is paying up for KR's profile and pricing ACI more conservatively, or for faster growth. Which you prefer comes down to the drivers you believe, and whether adding either over-concentrates what you already own.
ACI vs KR: the tie-breaker metrics
Same yardstick, side by side (as of August 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.
| Metric | ACI | KR | What it tells you |
|---|---|---|---|
| Forward P/E | 6.18 | 10.42 | Valuation on next year's expected earnings, the same yardstick for both. Lower is cheaper for that growth; higher means the market is paying up. |
| Trailing P/E | 72.38 | 33.77 | Valuation on the last 12 months. A big drop from trailing to forward means the market expects earnings to jump, so more growth is already in the price. |
| Beta | 0.25 | 0.44 | Volatility vs the market. Above 1 swings harder than the index; below 1 is steadier. Higher beta means bigger drawdowns to hold through. |
| Price vs 52-week range | 8% of range | 16% of range | Where today's price sits between the 52-week low and high. Near the high is momentum with less margin of safety; near the low is out of favor or a discount, depending on why. |
| Price / book | 3.51 | 6.24 | How much you pay over book value. Very high can signal an asset-light, high-return business or a rich price. |
Reading it: ACI is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.
Before you buy: how ACI and KR affect your concentration
The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. ACI and KR share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.
This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined ACI and KR exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.
What does Albertsons Companies (ACI) do?
Albertsons Companies is a leading US food and drug retailer, running roughly 2,200 supermarkets across the country under about two dozen well-known regional banners, including Albertsons, Safeway, Vons, Jewel-Osco, Shaw's, Acme, and Tom Thumb, along with in-store pharmacies and fuel centers. Its scale makes it one of the largest grocers in the nation, and its business is defensive: food and pharmacy demand is relatively steady through economic cycles. The trade-off is that grocery is a notoriously low-margin, high-competition industry, so Albertsons competes on price, convenience, private label, and loyalty rather than on rapid growth.
What does Kroger (KR) do?
Kroger is one of the largest grocery retailers in the United States, operating thousands of supermarkets and multi-department stores under banners such as Kroger, Ralphs, Fred Meyer, King Soopers, and Harris Teeter, alongside pharmacies, fuel centers, and a large private-label portfolio. It is a classic consumer-staples business: people buy groceries in every economic climate, which makes revenue relatively defensive, but margins are thin and the company competes on scale, supply-chain efficiency, and price against Walmart, Costco, and Amazon. In recent years Kroger has leaned into higher-margin growth engines, including its digital and e-commerce operations, its Kroger Precision Marketing retail-media advertising business, and its own consumer brands, to lift profitability above the razor-thin economics of selling food.
ACI vs KR: how do they differ?
Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.
- ACI drivers: Defensive, steady grocery demand; Digital, loyalty, and retail media.
- KR drivers: Defensive, cash-generative core business; Higher-margin growth engines.
Which fits which kind of investor
A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: The central risk is thin margins and intense competition: Albertsons operates against Walmart, Costco, Kroger, Amazon, and hard discounters like Aldi, which pressure prices and limit profitability in an already low-margin industry. For KR, the central risk is intense competition and thin margins: Kroger sells food at low profit rates and competes on price against much larger Walmart, warehouse clubs like Costco, and Amazon, which limits pricing power.
ACI or KR: which should you pick?
ACI vs KR: the full fundamentals
ACI. These figures are approximate and tied to the asOf date; verify live numbers before acting. Albertsons is valued as a defensive, low-growth grocer, so it typically trades at a modest earnings multiple relative to the broader market, with the dividend and buyback central to total return. The key questions are whether digital, pharmacy, and retail media can lift margins and how well it competes with larger discounters.
KR. These figures are approximate and tied to the July 2026 asOf date; verify live numbers, current guidance, and the latest declared dividend before making any decision. As a mature grocer, Kroger typically trades at a modest earnings multiple that reflects slow growth and thin margins, so total return leans heavily on dividends, buybacks, and margin improvement from its higher-margin businesses. None of this is investment advice.
Headline figures (approximate, Jul 2026): ACI shows revenue scale One of the largest US grocers, with tens of billions in annual sales across ~2,200 stores, earnings Fiscal 2025 adjusted EPS around $2.18 and adjusted EBITDA near $3.9 billion, margin profile Thin grocery margins, with digital, pharmacy, and retail media the main levers to improve profitability, digital and loyalty Digital sales up about 21% in fiscal 2025; loyalty membership grew past 50 million; KR shows business profile One of the largest US grocers, with tens of billions in annual sales across thousands of supermarkets, pharmacies, and fuel centers, fiscal 2025 same-store sales Identical sales without fuel up about 2.9%, reflecting steady grocery demand, fiscal 2025 adjusted eps About $4.85 on an adjusted basis; GAAP EPS was lower at roughly $1.54 on merger-related and other items, 2026 adjusted eps guidance Roughly $5.10 to $5.30, per company guidance.
The bottom line: ACI vs KR
ACI and KR are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined ACI and KR exposure against your real portfolio. It is not an investment adviser.
Wondering how ACI or KR fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in Albertsons Companies with AI
Connect the broker you already use and ask Walnut's AI how ACI fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is the difference between ACI and KR?
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Albertsons Companies is a leading US food and drug retailer, running roughly 2,200 supermarkets across the country under about two dozen well-known regional banners, including Albertsons, Safeway, Vons, Jewel-Osco, Shaw's, Acme, and Tom Thumb, along with in-store pharmacies and fuel centers. Kroger is one of the largest grocery retailers in the United States, operating thousands of supermarkets and multi-department stores under banners such as Kroger, Ralphs, Fred Meyer, King Soopers, and Harris Teeter, alongside pharmacies, fuel centers, and a large private-label portfolio. They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.
Is ACI or KR the better stock?
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Neither is universally better; they suit different views and risk levels. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.
Which is cheaper, ACI or KR?
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On forward P/E (as of August 2026), ACI trades at 6.18x and KR at 10.42x, so ACI is the cheaper of the two on next year's expected earnings. A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.
Should you own both ACI and KR?
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Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.
What are the risks of ACI vs KR?
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ACI: The central risk is thin margins and intense competition: Albertsons operates against Walmart, Costco, Kroger, Amazon, and hard discounters like Aldi, which pressure prices and limit profitability in an already low-margin industry. Food-price deflation or inflation, wage pressure, and labor relations (much of its workforce is unionized) can squeeze margins from multiple directions. Pharmacy reimbursement pressure and regulatory changes add uncertainty to a meaningful profit contributor. The failed Kroger merger removed a path to greater scale, leaving Albertsons to compete standalone. It also carries debt from its private-equity and leveraged history, so interest costs matter, and a large shareholder base tied to former private-equity owners can affect the stock. Slower consumer spending or a shift to discounters would pressure both traffic and mix. KR: The central risk is intense competition and thin margins: Kroger sells food at low profit rates and competes on price against much larger Walmart, warehouse clubs like Costco, and Amazon, which limits pricing power. Food-price deflation or inflation, labor costs, and unionized workforce dynamics can pressure margins in either direction. The abandoned Albertsons merger left open litigation, with Albertsons seeking a $600 million termination fee plus damages, an unresolved overhang. Leadership turnover after the former CEO's resignation adds execution uncertainty as a new chief executive sets strategy. Growth is structurally slow, so a valuation re-rating depends on the higher-margin businesses delivering. Consumer spending shifts, e-commerce fulfillment costs, and regulatory scrutiny of grocery pricing add further pressure.
Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell ACI or KR; figures are approximate and dated (as of August 2026). Verify current data before investing.