There was only one winner between Sainsbury’s (LSE: SBRY) and Tesco (LSE: TSCO) last year. Previous 11 % increased while the latter jumped 28 %. Sainsbury’s has a higher profit return, but that will not be close to compensating the difference.

Which one seems more attractive to go forward? This is my opinion.

Operating performance

In the first quarter, the total retail sales (with the exception of fuel) in Ceninsbi increased by 4.9 %, with grocery sales increased by 5 %. This period was the highest share in the market since 2016, as a plan for “Aldi Price Match” and Tasting Popular installments have proven.

ARGOS grew by 4.4 %, despite the difficult market, and women’s clothing increased by 13 %. In general, suspicious sales increased against 4.7 %.

Meanwhile, profit expectations for the whole year remain constant, as the company aims to obtain 1 billion pounds of retail profits and 500 million pounds in free cash flow. Cost savings are also on the right track, with 1 billion pounds in March 2027.

As for TESCO, the leading supermarket in the UK has witnessed 4.6 % sales, with UK sales increased by 5.1 % on a similar basis. Its share on the market now stands 28.3 %.

Fresh food performance and well -distinctive version, with better The sales range of 18 %. Boyer Business Boyer also enjoyed a strong growth, although tobacco sales are low. Ireland (+5.5 %) and Central Europe (+4.1 %) recorded strong growth as well.

We look forward, the administration has maintained the entire year’s instructions, as 2.7 billion pounds-3.0 billion pounds in the modified operating profits. Tesco continued to purchase an arrow of 1.45 billion pounds, with about a third that has already been completed.

In short, both FTSE 100 Supermarkets have been working well so far this year. I find it difficult to divide it, really.

Income prospects

By moving to stock profits, Sainsbury offers a higher return on Tesco shares, which is not surprising due to the difference in the performance of the stock prices. Since Tesco has risen up, the return has decreased due to the opposite relationship between the share price and the profit return.

This fiscal year ending in March 2026, Sainsbury’s 14.1p is expected to give up per share. That will be 4 % on an annual basis.

However, after selling Sainsbury, there will be special profits at the forefront later this year. Including this, the payment jumps to 18.5 per share, which leads to an expected return of 6.1 %. This will then be normalized to 5 % in the following year.

Meanwhile, the return of Tesco’s expectations is 3.2 % lower, and rose to 3.8 % next year.

Of course, these are just expectations, not in the stone. The stocks never guarantee.

Accordingly, it can be said that Sainsbury’s is the most attractive shares when it comes to income in the short term. It is also a little cheaper, as the price ratio to profits is 12 compared to Tesco’s 14 (both for the next year).

My choice

Of course, there are risks. The main I see is the possibility of a comprehensive price war between supermarkets. This hasn’t happened yet, but there were some words that blow on the chest of ASDA about the restoration of the market share.

The problem with this is that the supermarkets are working with thin profit margins, so the last thing Tesco and Sainsbury want is severe Tolley wars.

I love the pioneering Tesco site in the market and future passive income prospects. But looking at the risks, I am not keen to add any of the stocks to ISA now.