SunOpta (STKL) & The Kraft Heinz (KHC) Critical Comparison
SunOpta (NASDAQ: STKL) and The Kraft Heinz (NASDAQ:KHC) are both consumer staples companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, profitability, risk, analyst recommendations and dividends.
This is a breakdown of recent recommendations for SunOpta and The Kraft Heinz, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|The Kraft Heinz||0||4||11||0||2.73|
SunOpta currently has a consensus price target of $8.88, indicating a potential upside of 3.80%. The Kraft Heinz has a consensus price target of $97.46, indicating a potential upside of 17.99%. Given The Kraft Heinz’s stronger consensus rating and higher possible upside, analysts clearly believe The Kraft Heinz is more favorable than SunOpta.
The Kraft Heinz pays an annual dividend of $2.50 per share and has a dividend yield of 3.0%. SunOpta does not pay a dividend. The Kraft Heinz pays out 79.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Valuation & Earnings
This table compares SunOpta and The Kraft Heinz’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|SunOpta||$1.31 billion||0.56||$70.04 million||($0.64)||-13.36|
|The Kraft Heinz||$26.17 billion||3.85||$8.29 billion||$3.13||26.39|
The Kraft Heinz has higher revenue and earnings than SunOpta. SunOpta is trading at a lower price-to-earnings ratio than The Kraft Heinz, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
SunOpta has a beta of 1.76, suggesting that its share price is 76% more volatile than the S&P 500. Comparatively, The Kraft Heinz has a beta of 0.44, suggesting that its share price is 56% less volatile than the S&P 500.
Insider & Institutional Ownership
87.2% of SunOpta shares are held by institutional investors. Comparatively, 61.9% of The Kraft Heinz shares are held by institutional investors. 1.9% of SunOpta shares are held by company insiders. Comparatively, 26.9% of The Kraft Heinz shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This table compares SunOpta and The Kraft Heinz’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|The Kraft Heinz||14.67%||7.52%||3.62%|
The Kraft Heinz beats SunOpta on 12 of the 15 factors compared between the two stocks.
SunOpta Company Profile
Sunopta Inc is a Canada-based company, which operates businesses focused on a healthy products portfolio. It operates through the following segments: Global Ingredients and Consumer Products. The Global Ingredients segment aggregates its North American and international raw material sourcing and supply operating segments focused on the procurement, processing and sale of specialty and organic grains, seeds, fruits, grain- and cocoa-based ingredients, and other commodities. The Consumer Products segment provides healthy and organic food products that are consumer-packaged to retailers, foodservice distributors and food manufacturers with a range of branded and private label products. It is focused on sourcing non-genetically modified (non-GMO) and organic ingredients, and manufacturing healthy food and beverage products. It manufactures packaged products focused on the healthy beverage, healthy fruit and healthy snack categories.
The Kraft Heinz Company Profile
The Kraft Heinz Company is a food and beverage company. The Company is engaged in the manufacturing and marketing of food and beverage products, including condiments and sauces, cheese and dairy, meals, meats, refreshment beverages, coffee and other grocery products. The Company’s segments include the United States, Canada and Europe. The Company’s remaining businesses are combined as Rest of World. The Rest of World consists of Latin America and Asia, Middle East and Africa (AMEA). The Company provides products for various occasions whether at home, in restaurants or on the go. The Company’s brands include Heinz, Kraft, Oscar Mayer, Philadelphia, Planters, Velveeta, Lunchables, Maxwell House, Capri Sun, and Ore-Ida. The Company’s products are sold through its own sales organizations and through independent brokers, agents and distributors to chain, wholesale, cooperative and independent grocery accounts, convenience stores, drug stores, value stores, bakeries and pharmacies.
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