In comparison, as the table below shows, Walgreen increased its sales by nearly 6% but even after controlling for the gain in number of stores, revenue per store inched up by 0.3% and the operating profit per store slid by 2%, year over year.
So even though Rite Aid has done a better job in increasing its sales per store, its bottom line continues to dwindle.
Since Walgreen keeps extending its reach by opening new stores throughout the U.S while only slightly reducing its profit margin, the company is doing a better job in appreciating its value compared to Rite Aid.
At the time of publication the author held no positions in any of the stocks mentioned.
This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.