Conagra Brands (CAG) & Inventure Foods (SNAK) Critical Review

Conagra Brands (NYSE: CAG) and Inventure Foods (NASDAQ:SNAK) are both consumer staples companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, earnings, profitability and valuation.

Dividends

Conagra Brands pays an annual dividend of $0.85 per share and has a dividend yield of 2.3%. Inventure Foods does not pay a dividend. Conagra Brands pays out 60.3% of its earnings in the form of a dividend.

Risk and Volatility

Conagra Brands has a beta of 0.37, suggesting that its share price is 63% less volatile than the S&P 500. Comparatively, Inventure Foods has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500.

Valuation & Earnings

This table compares Conagra Brands and Inventure Foods’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Conagra Brands $7.83 billion 1.94 $639.30 million $1.41 26.42
Inventure Foods $269.01 million 0.29 -$30.24 million ($3.39) -1.18

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

Profitability

This table compares Conagra Brands and Inventure Foods’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Conagra Brands 7.83% 18.35% 7.29%
Inventure Foods -34.84% -162.36% -8.34%

Insider & Institutional Ownership

79.0% of Conagra Brands shares are owned by institutional investors. Comparatively, 69.3% of Inventure Foods shares are owned by institutional investors. 0.8% of Conagra Brands shares are owned by insiders. Comparatively, 6.4% of Inventure Foods shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and price targets for Conagra Brands and Inventure Foods, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Conagra Brands 1 1 8 0 2.70
Inventure Foods 0 2 0 0 2.00

Conagra Brands currently has a consensus target price of $40.78, suggesting a potential upside of 9.47%. Inventure Foods has a consensus target price of $8.00, suggesting a potential upside of 100.50%. Given Inventure Foods’ higher possible upside, analysts clearly believe Inventure Foods is more favorable than Conagra Brands.

Summary

Conagra Brands beats Inventure Foods on 11 of the 15 factors compared between the two stocks.

Conagra Brands Company Profile

Conagra Brands, Inc., formerly ConAgra Foods, Inc., operates as a packaged food company. The Company operates through two segments: Consumer Foods and Commercial Foods. The Company sells branded and customized food products, as well as commercially branded foods. It also supplies vegetable, spice and grain products to a range of restaurants, foodservice operators and commercial customers. Conagra Foodservice offers products to restaurants, retailers, commercial customers and other foodservice suppliers. The Company also operates in the countries outside the United States, such as Canada and Mexico. The Company’s brands include Marie Callender’s, Healthy Choice, Slim Jim, Hebrew National, Orville Redenbacher’s, Peter Pan, Reddi-wip, PAM, Snack Pack, Banquet, Chef Boyardee, Egg Beaters, Rosarita, Fleischmann’s and Hunt’s. The Company sells its products in grocery, convenience, mass merchandise and club stores.

Inventure Foods Company Profile

Inventure Foods, Inc. is a marketer and manufacturer of healthy/natural and indulgent specialty snack food brands. The Company operates in the snack products segment. The snack products segment produces potato chips, kettle chips, potato crisps, potato skins, pellet snacks, sheeted dough products and extruded products for sale primarily to snack food distributors and retailers. The products sold under its snack products segment includes products considered part of the indulgent specialty snack food category, as well as products considered part of the healthy/natural food category. Its Snack Products segment’s brands include Boulder Canyon, Nathan’s Famous, T.G.I. Friday’s, Poore Brothers, and Bob’s Texas Style.

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