Conagra Brands (NYSE: CAG) and Kraft Heinz Foods (NYSE:HNZ) are both large-cap non-cyclical consumer goods & services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, dividends, analyst recommendations, earnings, institutional ownership, risk and valuation.
Conagra Brands pays an annual dividend of $0.85 per share and has a dividend yield of 2.2%. Kraft Heinz Foods does not pay a dividend. Conagra Brands pays out 50.6% of its earnings in the form of a dividend.
This table compares Conagra Brands and Kraft Heinz Foods’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Conagra Brands||$7.83 billion||1.98||$639.30 million||$1.68||22.58|
|Kraft Heinz Foods||N/A||N/A||N/A||$3.26||5.75|
Conagra Brands has higher revenue and earnings than Kraft Heinz Foods. Kraft Heinz 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.
This is a summary of current ratings and price targets for Conagra Brands and Kraft Heinz Foods, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Kraft Heinz Foods||0||2||1||0||2.33|
Conagra Brands currently has a consensus price target of $41.56, suggesting a potential upside of 9.53%. Kraft Heinz Foods has a consensus price target of $17.65, suggesting a potential downside of 5.87%. Given Conagra Brands’ stronger consensus rating and higher probable upside, equities analysts plainly believe Conagra Brands is more favorable than Kraft Heinz Foods.
This table compares Conagra Brands and Kraft Heinz Foods’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Kraft Heinz Foods||N/A||N/A||N/A|
Institutional & Insider Ownership
78.9% of Conagra Brands shares are held by institutional investors. 0.8% of Conagra Brands shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Conagra Brands beats Kraft Heinz Foods on 11 of the 13 factors compared between the two stocks.
About Conagra Brands
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.
About Kraft Heinz Foods
H. J. Heinz Company, together with its subsidiaries, is engaged in manufacturing and marketing a range of food products throughout the world. The Company’s principal products include ketchup, condiments and sauces, frozen food, soups, beans and pasta meals, infant nutrition and other food products. The Company’s products are manufactured and packaged to provide wholesome foods for consumers, as well as foodservice and institutional customers. The Company manufactures and contracts for the manufacture of its products from a variety of raw food materials. The Company operates in five segments: North American Consumer Products, Europe, Asia/Pacific, U.S. Foodservice and Rest of World. The Company owns or leases office space, warehouses, distribution centers and research and other facilities throughout the world.
Receive News & Ratings for Conagra Brands Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Conagra Brands and related companies with MarketBeat.com's FREE daily email newsletter.