Analyzing B&G Foods (BGS) and MGP Ingredients (MGPI)

B&G Foods (NYSE: BGS) and MGP Ingredients (NASDAQ:MGPI) are both consumer staples companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, risk, profitabiliy, dividends and earnings.

Dividends

B&G Foods pays an annual dividend of $1.86 per share and has a dividend yield of 6.0%. MGP Ingredients pays an annual dividend of $0.16 per share and has a dividend yield of 0.3%. B&G Foods pays out 122.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. MGP Ingredients pays out 8.4% of its earnings in the form of a dividend. MGP Ingredients has raised its dividend for 6 consecutive years.

Risk & Volatility

B&G Foods has a beta of 0.09, indicating that its stock price is 91% less volatile than the S&P 500. Comparatively, MGP Ingredients has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500.

Valuation and Earnings

This table compares B&G Foods and MGP Ingredients’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
B&G Foods $1.46 billion 1.42 $325.40 million $1.52 20.56
MGP Ingredients $328.60 million 2.97 $49.94 million $1.90 30.69

B&G Foods has higher revenue and earnings than MGP Ingredients. B&G Foods is trading at a lower price-to-earnings ratio than MGP Ingredients, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

88.7% of B&G Foods shares are owned by institutional investors. Comparatively, 97.7% of MGP Ingredients shares are owned by institutional investors. 2.2% of B&G Foods shares are owned by company insiders. Comparatively, 23.5% of MGP Ingredients shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares B&G Foods and MGP Ingredients’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
B&G Foods 6.64% 15.43% 4.05%
MGP Ingredients 9.33% 21.30% 13.83%

Analyst Recommendations

This is a summary of current ratings and recommmendations for B&G Foods and MGP Ingredients, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
B&G Foods 0 6 3 0 2.33
MGP Ingredients 0 1 1 0 2.50

B&G Foods presently has a consensus price target of $42.31, indicating a potential upside of 35.40%. MGP Ingredients has a consensus price target of $66.00, indicating a potential upside of 13.19%. Given B&G Foods’ higher probable upside, research analysts plainly believe B&G Foods is more favorable than MGP Ingredients.

Summary

MGP Ingredients beats B&G Foods on 12 of the 17 factors compared between the two stocks.

B&G Foods Company Profile

B&G Foods, Inc. (B&G Foods) is a holding company. The Company manufactures, sells and distributes a portfolio of shelf-stable and frozen foods across the United States, Canada and Puerto Rico. Its products include frozen and canned vegetables, hot cereals, fruit spreads, canned meats and beans, bagel chips, spices, seasonings, hot sauces, wine vinegar, maple syrup, molasses, salad dressings, pizza crusts, Mexican-style sauces, dry soups, taco shells and kits, salsas, pickles, peppers, tomato-based products, puffed corn and rice snacks, nut clusters and other specialty products. Its products are marketed under various brands, including Ac’cent, B&G, B&M, Baker’s Joy, Bear Creek Country Kitchens, Brer Rabbit, Canoleo, Cary’s, Cream of Rice, Cream of Wheat, Devonsheer, Don Pepino, Durkee, New York Style, Old London, Original Tings, Ortega, Spice Islands, Spring Tree, Static Guard, Sugar Twin, Tone’s, Trappey’s, TrueNorth, Underwood, Vermont Maid, Victoria, Weber and Wright’s.

MGP Ingredients Company Profile

MGP Ingredients, Inc. is a producer and supplier of distilled spirits, and specialty wheat protein and starch food ingredients. The Company’s distilled spirits include bourbon and rye whiskeys, and grain neutral spirits, including vodka and gin. The Company’s segments include distillery products and ingredient solutions. The distillery products segment consists of food grade alcohol and distillery co-products, such as distillers feed and fuel grade alcohol. The ingredient solutions segment consists of specialty starches and proteins, commodity starches and commodity proteins. The distillery products segment also includes warehouse services, including barrel put away, barrel storage, and barrel retrieval services. It is also a producer of industrial alcohol for use in both food and non-food applications. The Company’s distillery products are derived from corn and other grains (including rye, barley, wheat, barley malt and milo), and its ingredient products are derived from wheat flour.

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