Comparing Armanino Foods of Distinction (OTCMKTS:AMNF) & Dole (NYSE:DOLE)

Dole (NYSE:DOLE) and Armanino Foods of Distinction (OTCMKTS:AMNF) are both small-cap consumer staples companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, profitability, earnings, valuation, analyst recommendations, risk and institutional ownership.

Profitability

This table compares Dole and Armanino Foods of Distinction’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dole	0.63%	7.06%	2.33%
Armanino Foods of Distinction	24.57%	46.16%	34.56%

Volatility & Risk

Dole has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500. Comparatively, Armanino Foods of Distinction has a beta of 0.11, suggesting that its stock price is 89% less volatile than the S&P 500.

Valuation and Earnings

This table compares Dole and Armanino Foods of Distinction”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dole	$9.49 billion	0.13	$51.32 million	$0.62	21.02
Armanino Foods of Distinction	$76.10 million	4.79	$18.80 million	$0.63	18.87

Dole has higher revenue and earnings than Armanino Foods of Distinction. Armanino Foods of Distinction is trading at a lower price-to-earnings ratio than Dole, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations and price targets for Dole and Armanino Foods of Distinction, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dole	0	3	0	0	2.00
Armanino Foods of Distinction	0	1	1	1	3.00

Dole currently has a consensus target price of $14.00, suggesting a potential upside of 7.40%. Armanino Foods of Distinction has a consensus target price of $15.00, suggesting a potential upside of 26.17%. Given Armanino Foods of Distinction’s stronger consensus rating and higher probable upside, analysts clearly believe Armanino Foods of Distinction is more favorable than Dole.

Insider and Institutional Ownership

0.1% of Armanino Foods of Distinction shares are held by institutional investors. 41.8% of Dole shares are held by company insiders. Comparatively, 30.2% of Armanino Foods of Distinction shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Dole pays an annual dividend of $0.34 per share and has a dividend yield of 2.6%. Armanino Foods of Distinction pays an annual dividend of $0.20 per share and has a dividend yield of 1.7%. Dole pays out 54.8% of its earnings in the form of a dividend. Armanino Foods of Distinction pays out 31.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Dole has increased its dividend for 1 consecutive years. Dole is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Armanino Foods of Distinction beats Dole on 11 of the 18 factors compared between the two stocks.

About Dole

Dole Food Company, Inc. (Dole) is a producer, marketer and distributor of fresh fruit and fresh vegetables. The Company is a producer of bananas and pineapples, and packaged fruit products, packaged salads and fresh-packed vegetables. The Company has three business segments: fresh fruit, fresh vegetables and packaged foods. The fresh fruit segment contains operating divisions that produce and market fresh fruit to wholesale, retail and institutional customers worldwide. The fresh vegetables segment produces and markets fresh-packed and value-added vegetables and salads to wholesale, retail and institutional customers, primarily in North America and Europe. The packaged foods segment contains several operating divisions that produce and market packaged foods, including fruit, juices, frozen fruit and healthy snack foods. In November 2013, Dole Food Company, Inc announced that an investor group acquired the remaining 60.43% interest in the Company.

About Armanino Foods of Distinction

Armanino Foods of Distinction, Inc. produces and markets frozen food products in the United States. The company offers gourmet beef, Italian style beef and pork, and smoked turkey meatballs; grated parmesan and 3 cheese blend cheese; and various pesto, such as basil, artichoke, cilantro, dried tomato and garlic, roasted garlic, roasted red bell pepper, and southwest chipotle. It also provides frozen pasta, which includes beef cannelloni, cheese manicotti, cheese stuffed shells, cheese tortellini; pasta sheets, potato gnocchi, and tricolor cheese tortellini, as well as beef, butternut squash, four cheese, cheese and spinach, and wild mushroom ravioli; and various sauces, comprising creamy garlic, alfresco, Bolognese, chimichurri, harissa, and romesco. The company offers its products under the Armanino brand. It markets its products through a network of food brokers and sells to retail and foodservice distributors, club-type stores, and industrial accounts. The company was founded in 1978 and is based in Hayward, California.