Conagra Brands (NYSE: CAG) and Tate & Lyle (OTCMKTS:TATYY) are both consumer staples companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, profitability, earnings, institutional ownership and valuation.
This is a summary of recent ratings and target prices for Conagra Brands and Tate & Lyle, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Tate & Lyle||0||2||3||0||2.60|
This table compares Conagra Brands and Tate & Lyle’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Tate & Lyle||N/A||N/A||N/A|
Risk and Volatility
Conagra Brands has a beta of 0.28, indicating that its share price is 72% less volatile than the S&P 500. Comparatively, Tate & Lyle has a beta of 0.4, indicating that its share price is 60% less volatile than the S&P 500.
Earnings & Valuation
This table compares Conagra Brands and Tate & Lyle’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Conagra Brands||$7.83 billion||1.90||$639.30 million||$1.74||21.39|
|Tate & Lyle||$3.73 billion||0.99||$334.66 million||$2.55||12.40|
Conagra Brands has higher revenue and earnings than Tate & Lyle. Tate & Lyle is trading at a lower price-to-earnings ratio than Conagra Brands, indicating that it is currently the more affordable of the two stocks.
Conagra Brands pays an annual dividend of $0.85 per share and has a dividend yield of 2.3%. Tate & Lyle pays an annual dividend of $1.41 per share and has a dividend yield of 4.5%. Conagra Brands pays out 48.9% of its earnings in the form of a dividend. Tate & Lyle pays out 55.3% 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.
Institutional & Insider Ownership
79.9% of Conagra Brands shares are owned by institutional investors. Comparatively, 0.3% of Tate & Lyle shares are owned by institutional investors. 0.8% of Conagra Brands shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Conagra Brands beats Tate & Lyle on 12 of the 15 factors compared between the two stocks.
About Conagra Brands
Conagra Brands, Inc., together with its subsidiaries, operates as a food company in North America. The company operates through Grocery & Snacks, Refrigerated & Frozen, International, and Foodservice segments. The Grocery & Snacks segment primarily offers shelf stable food products in various retail channels in the United States. The Refrigerated & Frozen segment provides temperature controlled food products in various retail channels in the United States. The International reporting segment offers food products in various temperature states in retail and foodservice channels outside of the United States. The Foodservice segment offers food products, including meals, entrees, sauces, and various custom-manufactured culinary products packaged for sale to restaurants and other foodservice establishments in the United States. Conagra Brands, Inc. markets its products under the Marie Callender's, Reddi-wip, Hunt's, Healthy Choice, Slim Jim, Orville Redenbacher's, Alexia, Blake's, Frontera, and Duke's brand names. The company was formerly known as ConAgra Foods, Inc. and changed its name to Conagra Brands, Inc. in November 2016. Conagra Brands, Inc. was founded in 1919 and is headquartered in Chicago, Illinois.
About Tate & Lyle
Tate & Lyle PLC, together with its subsidiaries, provides ingredients and solutions to the food, beverage, and other industries in the United States, the United Kingdom, other European countries, and internationally. It operates through two segments, Speciality Food Ingredients and Bulk Ingredients. The company offers texturants, including corn-based starches, clean-label starches, and stabilizer systems; sweeteners, such as high intensity sweeteners and specialty sweeteners; and health and wellness ingredients comprising dietary fibers and oat proteins. In addition, the company is involved in blending, in-house treasury, pension, and reinsurance businesses; citric acid and sucralose production; and research and development and in-house financing businesses, as well as the provision of acidulants and grains. Tate & Lyle PLC was incorporated in 1903 and is headquartered in London, the United Kingdom.
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