The rivalry between Coles Group Ltd (ASX: COL) and Woolworths Group Ltd (ASX: WOW) has been ongoing for decades. The two businesses monopolise the Australian supermarket sector, and both benefitted from strong business growth amid Australia's high inflation period when food prices surged.
But when it comes to investing in its shares, which is the better option?
Here's a rundown of the two companies' strengths and weaknesses.
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Share prices side by side
The Coles share price closed at $20.51 on Thursday afternoon, which is a 1.03% increase over the day. Over the past year the company's share price has grown from strength-to-strength, peaking at an all-time high of $22.48 on 9 May this year. The share price has since fallen from its peak but is still 19.87% higher for the year.
The Woolworths share price closed at $31.16 on Thursday afternoon, which is a 0.97% increase over the day. While Woolworths' share price is higher than Coles, it is 8.33% lower over the year. The company's share price peaked at a 10-year high of $41.73 back on 31 August 2021 and has slowly declined since.
Half-year financial reports presented two different tales
Coles' positive H1 2025 report impressed investors and helped rally more confidence in the company. The company posted a 12.5% increase in underlying earnings, and a 6.4% increase in underlying net profits after tax in its H1 results earlier this year .
Meanwhile, the Woolworths FY2024 results, and H1 2025, did not impress investors. The supermarket giant posted a 14.2% drop in earnings and a 20.6% drop in net profit in its half-year results. This, combined with a loss of market share to its rival Coles, pushed the company's share price further downwards.
What do analysts think?
Analysts are generally positive on Coles shares. Data shows that of analysts offering one-year price forecasts, the maximum target price is $23.90, and the average is $21.47. This represents a potential 16.44% and 4.60% upside respectively, from the trading price at time of writing.
Macquarie has an outperform rating and $23.10 price target on Coles shares.
Citi has a buy rating on Coles, with a price target of $21.00.
RBC initiated coverage on Coles in March with an 'outperform' recommendation and a price target of $22 per share.
Analysts are also relatively positive on Woolworths stock. Data shows the consensus is a maximum price target of $36.60 and an average of $32.52. This represents a potential upside of 17.49% and 4.3%, respectively, from the trading price at time of writing.
Macquarie has an outperform rating and $33.60 price target on Woolworths shares.
RBC Capital Markets began coverage on Woolworths Group Ltd with a 'sector perform' recommendation and a price target of $31.00.
So, which is the better buy?
While the outlook is generally positive on both company share prices, it seems analysts are more optimistic about Coles' price uptick.
Ultimately, it depends on an investor's risk profile and investment strategy. While Coles can be considered a stable investment with good share price growth, Woolworths might be a better option for investors willing to take on higher risk for the potential of even better returns over the long-term.
Which will you pick?
