Celsius (NASDAQ:CELH) and Kraft Heinz (NASDAQ:KHC) Critical Contrast

Kraft Heinz (NASDAQ:KHC) and Celsius (NASDAQ:CELH) are both large-cap consumer staples companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, dividends and valuation.

Valuation and Earnings

This table compares Kraft Heinz and Celsius”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kraft Heinz	$25.85 billion	1.09	$2.74 billion	($3.73)	-6.36
Celsius	$1.36 billion	9.98	$145.07 million	$0.10	524.80

Kraft Heinz has higher revenue and earnings than Celsius. Kraft Heinz is trading at a lower price-to-earnings ratio than Celsius, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Kraft Heinz and Celsius, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kraft Heinz	5	17	0	1	1.87
Celsius	2	3	18	0	2.70

Kraft Heinz currently has a consensus price target of $26.16, suggesting a potential upside of 10.18%. Celsius has a consensus price target of $66.33, suggesting a potential upside of 26.40%. Given Celsius’ stronger consensus rating and higher probable upside, analysts clearly believe Celsius is more favorable than Kraft Heinz.

Insider and Institutional Ownership

78.2% of Kraft Heinz shares are held by institutional investors. Comparatively, 61.0% of Celsius shares are held by institutional investors. 0.4% of Kraft Heinz shares are held by insiders. Comparatively, 2.6% of Celsius shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Kraft Heinz and Celsius’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kraft Heinz	-17.35%	7.26%	3.86%
Celsius	3.03%	41.88%	10.94%

Volatility & Risk

Kraft Heinz has a beta of 0.09, suggesting that its share price is 91% less volatile than the S&P 500. Comparatively, Celsius has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500.

Summary

Celsius beats Kraft Heinz on 11 of the 15 factors compared between the two stocks.

About Kraft Heinz

The Kraft Heinz Company, together with its subsidiaries, manufactures and markets food and beverage products in North America and internationally. Its products include condiments and sauces, cheese and dairy products, meals, meats, refreshment beverages, coffee, and other grocery products under the Kraft, Oscar Mayer, Heinz, Philadelphia, Lunchables, Velveeta, Ore-Ida, Maxwell House, Kool-Aid, Jell-O, Heinz, ABC, Master, Quero, Kraft, Golden Circle, Wattie's, Pudliszki, and Plasmon brands. It sells its products through its own sales organizations, as well as through independent brokers, agents, and distributors to chain, wholesale, cooperative, and independent grocery accounts; convenience, value, and club stores; pharmacies and drug stores; mass merchants; foodservice distributors; institutions, including hotels, restaurants, bakeries, hospitals, health care facilities, and government agencies; and online through various e-commerce platforms and retailers. The company was formerly known as H.J. Heinz Holding Corporation and changed its name to The Kraft Heinz Company in July 2015. The Kraft Heinz Company was founded in 1869 and is based in Pittsburgh, Pennsylvania.

About Celsius

Celsius Holdings, Inc. develops, processes, markets, distributes, and sells functional energy drinks and liquid supplements in the United States, Australia, New Zealand, Canadian, European, Middle Eastern, Asia-Pacific, and internationally. The company offers CELSIUS, a fitness drink or supplement designed to accelerate metabolism and burn body fat; various flavors and carbonated and non-carbonated functional energy drinks under the CELSIUS Originals and Vibe name, as well as functional energy drink under the CELSIUS Essentials and CELSIUS On-the-Go Powder names; and CELSIUS ready-to drink products. It distributes its products through direct-to-store delivery, distributors, supermarkets, convenience stores, drug stores, nutritional stores, and mass merchants, as well as health clubs, gyms, the military, and e-commerce websites. The company was formerly known as Vector Ventures, Inc. and changed its name to Celsius Holdings, Inc. in January 2007. Celsius Holdings, Inc. was founded in 2004 and is headquartered in Boca Raton, Florida.