Head to Head Survey: Tate & Lyle (TATYY) vs. Flowers Foods (FLO)

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Tate & Lyle (OTCMKTS: TATYY) and Flowers Foods (NYSE:FLO) are both mid-cap consumer staples companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, profitability, risk and dividends.

Volatility & Risk

Tate & Lyle has a beta of 0.45, indicating that its share price is 55% less volatile than the S&P 500. Comparatively, Flowers Foods has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500.

Valuation and Earnings

This table compares Tate & Lyle and Flowers Foods’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tate & Lyle $3.59 billion 1.08 $351.40 million $2.66 12.48
Flowers Foods $3.92 billion 1.11 $150.12 million $0.89 23.25

Tate & Lyle has higher earnings, but lower revenue than Flowers Foods. Tate & Lyle is trading at a lower price-to-earnings ratio than Flowers Foods, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

0.2% of Tate & Lyle shares are owned by institutional investors. Comparatively, 66.4% of Flowers Foods shares are owned by institutional investors. 15.2% of Flowers Foods shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings for Tate & Lyle and Flowers Foods, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tate & Lyle 0 3 2 0 2.40
Flowers Foods 0 6 4 0 2.40

Flowers Foods has a consensus target price of $21.89, indicating a potential upside of 5.79%. Given Flowers Foods’ higher possible upside, analysts plainly believe Flowers Foods is more favorable than Tate & Lyle.

Profitability

This table compares Tate & Lyle and Flowers Foods’ 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
Flowers Foods 3.58% 15.87% 7.39%

Dividends

Tate & Lyle pays an annual dividend of $2.09 per share and has a dividend yield of 6.3%. Flowers Foods pays an annual dividend of $0.72 per share and has a dividend yield of 3.5%. Tate & Lyle pays out 78.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Flowers Foods pays out 80.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Flowers Foods has raised its dividend for 12 consecutive years. Tate & Lyle is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Flowers Foods beats Tate & Lyle on 12 of the 16 factors compared between the two stocks.

Tate & Lyle Company Profile

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.

Flowers Foods Company Profile

Flowers Foods, Inc. produces and markets bakery products in the United States. It operates through two segments, Direct-Store-Delivery (DSD) and Warehouse Delivery. The DSD segment produces and markets fresh breads, buns, rolls, tortillas, and snack cakes. This segment offers its products primarily under the Nature's Own, Wonder, Cobblestone Bread Company, Tastykake, and Dave's Killer Bread brand names. It operates 39 bakeries, as well as sells its products through a network of independent distributors to retail and foodservice customers. The Warehouse Delivery segment produces snack cakes, frozen breads, and rolls for national retail, foodservice, vending, and co-pack customers through a network of warehouse channels. This segment markets its products under the Mrs. Freshley's, Alpine Valley Bread, and European Bakers brand names. It also sells products under franchised and licensed trademarks and trade names, such as Sunbeam, Bunny, and Sara Lee. The company was formerly known as Flowers Industries and changed its name to Flowers Foods, Inc. in 2001. Flowers Foods, Inc. was founded in 1919 and is headquartered in Thomasville, Georgia.

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