Post (POST) versus Kellogg’s (K) Head-To-Head Analysis

Post (NYSE: POST) and Kellogg’s (NYSE:K) are both consumer staples companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, analyst recommendations, risk, valuation, institutional ownership and earnings.

Valuation and Earnings

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This table compares Post and Kellogg’s’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Post $5.23 billion 1.03 $48.30 million $2.67 29.36
Kellogg’s $12.92 billion 1.73 $1.27 billion $4.04 15.98

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

Volatility & Risk

Post has a beta of -0.08, meaning that its stock price is 108% less volatile than the S&P 500. Comparatively, Kellogg’s has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500.

Dividends

Kellogg’s pays an annual dividend of $2.16 per share and has a dividend yield of 3.3%. Post does not pay a dividend. Kellogg’s pays out 53.5% of its earnings in the form of a dividend. Kellogg’s has raised its dividend for 13 consecutive years.

Analyst Recommendations

This is a breakdown of recent recommendations for Post and Kellogg’s, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Post 0 1 9 0 2.90
Kellogg’s 3 7 6 0 2.19

Post currently has a consensus price target of $102.57, suggesting a potential upside of 30.86%. Kellogg’s has a consensus price target of $74.13, suggesting a potential upside of 14.83%. Given Post’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Post is more favorable than Kellogg’s.

Institutional & Insider Ownership

91.9% of Kellogg’s shares are held by institutional investors. 7.4% of Post shares are held by company insiders. Comparatively, 1.4% of Kellogg’s shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Post and Kellogg’s’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Post 4.54% 7.90% 2.04%
Kellogg’s 9.82% 70.35% 8.99%

Summary

Kellogg’s beats Post on 11 of the 17 factors compared between the two stocks.

Post Company Profile

Post Holdings, Inc. is a consumer packaged goods holding company. The Company operates through four segments, namely, Post Consumer Brands, Michael Foods Group, Active Nutrition and Private Brands. The Company’s Post Consumer Brands segment includes the Post Foods branded ready-to-eat cereal operations and the business of MOM Brands. Its Michael Foods Group segment produces and distributes egg products, refrigerated potato products, cheese and other dairy case products, and pasta products. Its Private Brands segment manufactures and distributes organic and conventional private label peanut butter and other nut butters, baking nuts, raisins and other dried fruit, and trail mixes. Its Active Nutrition segment markets and distributes protein beverages and bars under the Premier Protein brand, protein powders and bars under the Dymatize and Supreme Protein brands, and ready-to-drink beverages and other liquid-based solutions under the Joint Juice brand.

Kellogg’s Company Profile

Kellogg Company, together with its subsidiaries, manufactures and markets ready-to-eat cereal and convenience foods. The company operates through U.S. Morning Foods, U.S. Snacks, U.S. Specialty, North America Other, Europe, Latin America, and Asia Pacific segments. Its principal products include cookies, crackers, savory snacks, toaster pastries, cereal bars, granola bars and bites, fruit-flavored snacks, ready-to-eat cereals, frozen waffles, and veggie foods. The company offers its cereals and cereal bars under the Kellogg's brand, as well as under the Kashi and Bear Naked brand; frozen foods under the Eggo and Morningstar Farms brands; and cookies, crackers, crisps, and other convenience foods under the Kellogg's, Keebler, Cheez-It, Pringles, Murray, Austin, and Famous Amos brands. The company sells its products for retailers through direct sales forces, as well as use brokers and distributors in approximately 180 countries. Kellogg Company was founded in 1906 and is headquartered in Battle Creek, Michigan.

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