Simply Good Foods (NASDAQ: SMPL) and B&G Foods (NYSE:BGS) are both small-cap consumer staples companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, risk, analyst recommendations, dividends, institutional ownership and profitability.
This table compares Simply Good Foods and B&G Foods’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Simply Good Foods||9.60%||2.72%||1.59%|
B&G Foods pays an annual dividend of $1.86 per share and has a dividend yield of 6.9%. Simply Good Foods does not pay a dividend. B&G Foods pays out 87.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. B&G Foods has raised its dividend for 7 consecutive years.
This is a breakdown of recent ratings for Simply Good Foods and B&G Foods, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Simply Good Foods||0||0||5||0||3.00|
Simply Good Foods currently has a consensus target price of $15.80, indicating a potential upside of 11.74%. B&G Foods has a consensus target price of $35.88, indicating a potential upside of 33.86%. Given B&G Foods’ higher probable upside, analysts plainly believe B&G Foods is more favorable than Simply Good Foods.
Insider and Institutional Ownership
75.4% of Simply Good Foods shares are held by institutional investors. Comparatively, 96.0% of B&G Foods shares are held by institutional investors. 4.6% of Simply Good Foods shares are held by insiders. Comparatively, 2.9% of B&G Foods shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Simply Good Foods and B&G Foods’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Simply Good Foods||$396.17 million||2.52||-$2.03 million||N/A||N/A|
|B&G Foods||$1.67 billion||1.07||$217.46 million||$2.12||12.64|
B&G Foods has higher revenue and earnings than Simply Good Foods.
B&G Foods beats Simply Good Foods on 10 of the 14 factors compared between the two stocks.
About Simply Good Foods
The Simply Good Foods Company develops, markets, and sells branded nutritional foods and snack products in North America and internationally. The company markets nutrition bars, ready-to-drink shakes, snacks, and confectionery products under the Atkins, SimplyProtein, Atkins Endulge, and Atkins Harvest Trail brand names. The company is headquartered in Denver, Colorado.
About B&G Foods
B&G Foods, Inc. manufactures, sells, and distributes a portfolio of shelf-stable and frozen foods in the United States, Canada, and Puerto Rico. Its products include frozen and canned vegetables, hot cereals, fruit spreads, canned meats and beans, bagel chips, spices, seasonings, hot sauces, wine vinegars, maple syrups, molasses, salad dressings, pizza crusts, Mexican-style sauces, dry soups, taco shells and kits, salsas, pickles, peppers, tomato-based products, puffed corn and rice snacks, cookies and crackers, nut clusters, and other specialty products. The company markets its products under various brands, including Ac'cent, B&G, B&M, Back to Nature, Baker's Joy, Bear Creek Country Kitchens, Brer Rabbit, Canoleo, Cary's, Cream of Rice, Cream of Wheat, Devonsheer, Don Pepino, Durkee, Emeril's, Grandma's Molasses, Green Giant, JJ Flats, Joan of Arc, Las Palmas, Le Sueur, MacDonald's, Mama Mary's, Maple Grove Farms of Vermont, Molly McButter, Mrs. Dash, New York Flatbreads, New York Style, Old London, Original Tings, Ortega, Pirate's Booty, Polaner, Red Devil, Regina, Sa-són, Sclafani, Smart Puffs, SnackWell's, Spice Islands, Spring Tree, Sugar Twin, Tone's, Trappey's, TrueNorth, Underwood, Vermont Maid, Victoria, Weber, and Wright's. It also sells, markets, and distributes household products under the Static Guard brand. B&G Foods, Inc. sells and distributes its products directly, as well as through a network of independent brokers and distributors to supermarket chains, food service outlets, mass merchants, warehouse clubs, non-food outlets, and specialty distributors. The company was formerly known as B&G Foods Holdings Corp. and changed its name to B&G Foods, Inc. in October 2004. B&G Foods, Inc. was founded in 1996 and is headquartered in Parsippany, New Jersey.
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