MGP Ingredients (NASDAQ: MGPI) and AdvancePierre Foods Holdings (NASDAQ:APFH) are both consumer staples companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, analyst recommendations, earnings and valuation.

Dividends

MGP Ingredients pays an annual dividend of $0.16 per share and has a dividend yield of 0.2%. AdvancePierre Foods Holdings does not pay a dividend. MGP Ingredients pays out 7.4% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares MGP Ingredients and AdvancePierre Foods Holdings’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
MGP Ingredients $328.08 million 3.84 $31.18 million $2.17 34.71
AdvancePierre Foods Holdings N/A N/A N/A $2.05 19.63

MGP Ingredients has higher revenue and earnings than AdvancePierre Foods Holdings. AdvancePierre Foods Holdings is trading at a lower price-to-earnings ratio than MGP Ingredients, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for MGP Ingredients and AdvancePierre Foods Holdings, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MGP Ingredients 0 1 2 0 2.67
AdvancePierre Foods Holdings 0 3 0 0 2.00

MGP Ingredients presently has a consensus price target of $66.00, suggesting a potential downside of 12.36%. AdvancePierre Foods Holdings has a consensus price target of $37.67, suggesting a potential downside of 6.42%. Given AdvancePierre Foods Holdings’ higher probable upside, analysts clearly believe AdvancePierre Foods Holdings is more favorable than MGP Ingredients.

Profitability

This table compares MGP Ingredients and AdvancePierre Foods Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MGP Ingredients 10.56% 18.70% 12.39%
AdvancePierre Foods Holdings 7.00% N/A 8.96%

Summary

MGP Ingredients beats AdvancePierre Foods Holdings on 8 of the 10 factors compared between the two stocks.

MGP Ingredients Company Profile

MGP Ingredients, Inc. is a producer and supplier of distilled spirits, and specialty wheat protein and starch food ingredients. The Company’s distilled spirits include bourbon and rye whiskeys, and grain neutral spirits, including vodka and gin. The Company’s segments include distillery products and ingredient solutions. The distillery products segment consists of food grade alcohol and distillery co-products, such as distillers feed and fuel grade alcohol. The ingredient solutions segment consists of specialty starches and proteins, commodity starches and commodity proteins. The distillery products segment also includes warehouse services, including barrel put away, barrel storage, and barrel retrieval services. It is also a producer of industrial alcohol for use in both food and non-food applications. The Company’s distillery products are derived from corn and other grains (including rye, barley, wheat, barley malt and milo), and its ingredient products are derived from wheat flour.

AdvancePierre Foods Holdings Company Profile

AdvancePierre Foods Holdings, Inc. is a producer and distributor of ready-to-eat sandwiches, sandwich components and other entrees and snacks. The Company operates through four segments. The Foodservice segment’s portfolio of products includes breakfast sandwiches, peanut butter and jelly sandwiches, Philly steaks, fully cooked hamburger-patties, country-fried steak, stuffed entrees and chicken tenders. The Retail segment sells both branded and private label ready-to-eat sandwiches, such as grilled chicken sandwiches and stuffed pockets; sandwich components, such as chicken patties, and other entrees and snacks, such as stuffed chicken breasts. The Convenience segment sells customized ready-to-eat sandwiches, such as breakfast sandwiches and burgers; sandwich components, such as chicken patties, and other entrees and snacks, such as cinnamon dough bites. The Industrial segment supplies other food producers, such as packaged food companies under short-term co-manufacturing agreements.

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