Comparison of Sainsbury's and Ocado: Financial Analysis and Investor Perspective

This report compares the financial performance of Sainsbury's and Ocado, and provides an investor perspective on their potential for growth and long-term returns. It analyzes the announcement of interim and annual results of both companies, and compares their revenue growth, market share, and price-to-book ratio. The report concludes that Sainsbury's has high potential for growth and is a good long-term investment, while Ocado is also performing well and should be held for the long term.

APPLIED FINANCIAL
ACCOUNTING
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
(a) announcement of interim result and annual result of Sainsbury and Ocardo company........3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................5

·INTRODUCTION
This report will cover announcement of interim result and annual result of Sainsbury's company
and Ocardo. Further, this report will also analyse the comparison of these two company from
investor point of view.
·MAIN BODY
·(a) announcement of interim result and annual result of Sainsbury and Ocardo company
Sainsbury's is one of the pioneers of US grocery retailing and Ocardo deals in software
develops, robotics, automation system, retail etc (Fülöp And et.al., 2020). Both the companies
has performed well in operation but Sainsbury's delivered revenue growth is 10.2% and on the
other hand Ocardo revenue growth is 21.4% across all the business segment. Further, market
share of Sainsbury's is 14.4% and Ocardo market share is 15.3%. So far the market share Ocardo
is performing well but Sainsbury has potential to grow. Price to book (P/B) ratio of Ocardo is
7.87 and Sainsbury's P/B is 1.03. It shows that Ocardo has better P/B ratio then Sainsbury's.
Moreover, Ocardo current OSP partnerships with global retail business is looking to grow faster.
In addition to, Ocardo also owns 50% of the fastest growing grocery in the UK market. On the
other side, Sainsbury's share price has seen an absolute high move of 14.3% on basis of last 12
months. In the recent time price analyst's recommended that market was expecting bright future
in the favour of Sainsbury company. Ocardo growing importance in UK grocery market and it's
a good opportunity to invest in the company even for the purpose of long term investment.
Ocardo will operate 4 CFCs internationally, across all 3 markets (Mason, 2019). Sainsbury
Company is also planning to transform its pricing policy that is also expecting a reduction in its
operating costs to sales ratio of at least two percentage points by March 2024.
·CONCLUSION
From the above analysis conclusion has been drawn that Sainsbury company has high potential
to grow. Those investors who are looking for long term return, may invest in this company.
Ocardo is also performing well, price analyst's suggested that this share need to hold for long
term.

·REFERENCES
Books and Journals
Fülöp, M.T. And et.al., 2020. More Confidence Of The Financial And Non-Financial
Information With The Assurance Of Sustainability Reporting. Annales Universitatis
Apulensis: Series Oeconomica. 22(2). pp.26-39.
Mason, R., 2019. Developing a profitable online grocery logistics business: Exploring
innovations in ordering, fulfilment, and distribution at ocado. In Contemporary Operations
and Logistics (pp. 365-383). Palgrave Macmillan, Cham.
Online
Which way now for the Ocado share price? 2021. [online]. Available through:
<https://www.stockopedia.com/articles/which-way-now-for-the-ocado-share-price-225148/>