Campbell Soup (NYSE: CPB) and Danone (OTCMKTS:DANOY) are both large-cap consumer staples companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, risk, valuation and profitability.
This table compares Campbell Soup and Danone’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This table compares Campbell Soup and Danone’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Campbell Soup||$7.89 billion||1.67||$887.00 million||$3.04||14.39|
|Danone||$4.00 billion||12.44||$2.77 billion||$0.88||18.34|
Danone has lower revenue, but higher earnings than Campbell Soup. Campbell Soup is trading at a lower price-to-earnings ratio than Danone, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Campbell Soup has a beta of 0.32, meaning that its share price is 68% less volatile than the S&P 500. Comparatively, Danone has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500.
This is a summary of recent recommendations and price targets for Campbell Soup and Danone, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Campbell Soup currently has a consensus price target of $50.89, suggesting a potential upside of 16.34%. Given Campbell Soup’s higher probable upside, equities research analysts plainly believe Campbell Soup is more favorable than Danone.
Institutional and Insider Ownership
50.2% of Campbell Soup shares are held by institutional investors. Comparatively, 0.4% of Danone shares are held by institutional investors. 37.2% of Campbell Soup shares are held by company insiders. Comparatively, 1.0% of Danone shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Campbell Soup pays an annual dividend of $1.40 per share and has a dividend yield of 3.2%. Danone pays an annual dividend of $0.23 per share and has a dividend yield of 1.4%. Campbell Soup pays out 46.1% of its earnings in the form of a dividend. Danone pays out 26.1% 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. Campbell Soup has raised its dividend for 2 consecutive years. Campbell Soup is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Campbell Soup beats Danone on 11 of the 16 factors compared between the two stocks.
Campbell Soup Company Profile
Campbell Soup Company, together with its subsidiaries, manufactures and markets food and beverage products. It operates through three segments: Americas Simple Meals and Beverages; Global Biscuits and Snacks; and Campbell Fresh. The Americas Simple Meals and Beverages segment engages in the retail and food service of Campbell's condensed and ready-to-serve soups; Swanson broth and stocks; Prego pasta sauces; Pace Mexican sauces; Campbell's gravies, pastas, beans, and dinner sauces; Swanson canned poultry; Plum food and snacks; V8 juices and beverages; and Campbell's tomato juices. The Global Biscuits and Snacks segment provides Pepperidge Farm cookies, crackers, and bakery and frozen products in the United States retail; Arnott's biscuits in Australia and the Asia Pacific; and Kelsen cookies worldwide, as well as meals and shelf-stable beverages in Australia and the Asia Pacific. The Campbell Fresh segment offers Bolthouse Farms fresh carrots, carrot ingredients, refrigerated beverages, and refrigerated salad dressings; and Garden Fresh Gourmet salsa, hummus, dips, and tortilla chips, as well as refrigerated soups. The company sells its products through retail food chains, mass discounters, mass merchandisers, club stores, convenience stores, drug stores, and dollar stores, as well as other retail, commercial, and non-commercial establishments; and independent contractor distributors. Campbell Soup Company was founded in 1869 and is headquartered in Camden, New Jersey.
Danone Company Profile
Danone SA is engaged in holding directly or indirectly companies, and coordination of the main functions and activities. The Company operates through four segments: Fresh Dairy Products Division, Waters Division, Early Life Nutrition Division and Medical Nutrition Division. The Fresh Dairy Products Division produces and markets yogurts, fermented fresh dairy products and specialized dairy products. The Waters Division comprises the natural waters business along with Aquadrinks (waters flavored and vitamin-enriched with natural fruit juice extracts, fruit juice and vitamins). The Early Life Nutrition Division focuses on the right nutrition in the first 1,000 days from the start of pregnancy to two years of age, and produces and distributes specialized foods for babies and young children to complement breast-feeding. The Medical Nutrition Division produces and distributes specialized food for people afflicted with certain illnesses or frail elderly people.
Receive News & Ratings for Campbell Soup Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Campbell Soup and related companies with MarketBeat.com's FREE daily email newsletter.