Comparing Campbell’s (NASDAQ:CPB) and George Weston (OTCMKTS:WNGRF)

Campbell’s (NASDAQ:CPB) and George Weston (OTCMKTS:WNGRF) are both consumer staples companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.

Volatility & Risk

Campbell’s has a beta of 0.03, meaning that its share price is 97% less volatile than the S&P 500. Comparatively, George Weston has a beta of 0.51, meaning that its share price is 49% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Campbell’s and George Weston, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Campbell’s	8	11	2	0	1.71
George Weston	0	2	4	0	2.67

Campbell’s presently has a consensus price target of $26.89, suggesting a potential upside of 27.77%. Given Campbell’s’ higher probable upside, research analysts clearly believe Campbell’s is more favorable than George Weston.

Dividends

Campbell’s pays an annual dividend of $1.56 per share and has a dividend yield of 7.4%. George Weston pays an annual dividend of $0.87 per share and has a dividend yield of 1.2%. Campbell’s pays out 85.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. George Weston pays out 43.1% of its earnings in the form of a dividend.

Profitability

This table compares Campbell’s and George Weston’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Campbell’s	5.48%	19.96%	5.21%
George Weston	1.71%	13.71%	3.44%

Insider & Institutional Ownership

52.4% of Campbell’s shares are held by institutional investors. Comparatively, 0.0% of George Weston shares are held by institutional investors. 19.8% of Campbell’s shares are held by company insiders. Comparatively, 53.6% of George Weston shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Campbell’s and George Weston”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Campbell’s	$10.25 billion	0.61	$602.00 million	$1.83	11.50
George Weston	$46.17 billion	0.59	$817.30 million	$2.02	35.70

George Weston has higher revenue and earnings than Campbell’s. Campbell’s is trading at a lower price-to-earnings ratio than George Weston, indicating that it is currently the more affordable of the two stocks.

Summary

George Weston beats Campbell’s on 9 of the 16 factors compared between the two stocks.

About Campbell’s

The Campbell’s Company, formerly known as Campbell Soup Company, together with its subsidiaries, manufactures and markets food and beverage products in the United States and internationally. The company operates through Meals & Beverages and Snacks segments. The Meals & Beverages segment engages in the retail and foodservice businesses in the United States and Canada. This segment provides Campbell’s condensed and ready-to-serve soups; Swanson broth and stocks; Pacific Foods broth, soups, and non-dairy beverages; Prego pasta sauces; Pace Mexican sauces; Campbell’s gravies, pasta, beans, and dinner sauces; Swanson canned poultry; V8 juices and beverages; Campbell’s tomato juice; and snacking products in foodservice in Canada. The Snacks segment retails Pepperidge Farm cookies, crackers, fresh bakery, and frozen products, which include Goldfish crackers, Snyder’s of Hanover pretzels, Lance sandwich crackers, Cape Cod and Kettle Brand potato chips, Late July snacks, Snack Factory pretzel crisps, Pop Secret popcorn, and other snacking products. This segment is also involved in the retail business in Latin America. It sells its products through retail food chains, mass discounters and merchandisers, club stores, convenience stores, drug stores, and dollar stores, as well as e-commerce and other retail, commercial, and non-commercial establishments, and independent contractor distributors. The company was founded in 1869 and is headquartered in Camden, New Jersey.

About George Weston

George Weston Limited provides food and drug retailing, and financial services in Canada. The company operates through two segments, Loblaw Companies Limited (Loblaw) and Choice Properties Real Estate Investment Trust (Choice Properties). The Loblaw segment provides grocery, pharmacy and healthcare services, health and beauty products, apparel, general merchandise, and financial services. This segment also offers credit card and other banking services, insurance brokerage services, guaranteed investment certificates, and wireless mobile products and services. The Choice Properties segment owns, operates, manages, and develops retail commercial and residential properties, leased to necessity-based tenants, industrial, and mixed-use and residential assets. It markets its products under the Shoppers Drug Mart, Joe Fresh, President’s Choice Bank, no name, Farmer’s Market, T&T, Life Brand, and PC Optimum brands. The company was founded in 1882 and is based in Toronto, Canada. George Weston Limited operates as a subsidiary of Wittington Investments, Limited.