Critical Comparison: Blue Apron Holdings (APRN) vs. Kellogg (K)
Blue Apron Holdings (NYSE: APRN) and Kellogg (NYSE:K) are both non-cyclical consumer goods & services 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.
This table compares Blue Apron Holdings and Kellogg’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Blue Apron Holdings||-21.67%||N/A||-51.87%|
Kellogg pays an annual dividend of $2.16 per share and has a dividend yield of 3.4%. Blue Apron Holdings does not pay a dividend. Kellogg pays out 96.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kellogg has increased its dividend for 12 consecutive years.
This is a breakdown of current ratings and recommmendations for Blue Apron Holdings and Kellogg, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Blue Apron Holdings||2||9||4||0||2.13|
Blue Apron Holdings presently has a consensus price target of $7.12, suggesting a potential upside of 137.97%. Kellogg has a consensus price target of $71.36, suggesting a potential upside of 10.28%. Given Blue Apron Holdings’ stronger consensus rating and higher probable upside, equities analysts clearly believe Blue Apron Holdings is more favorable than Kellogg.
Insider & Institutional Ownership
92.5% of Blue Apron Holdings shares are held by institutional investors. Comparatively, 86.9% of Kellogg shares are held by institutional investors. 1.3% of Kellogg shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Blue Apron Holdings and Kellogg’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Blue Apron Holdings||$795.41 million||0.11||-$54.88 million||($1.05)||-2.85|
|Kellogg||$13.01 billion||1.71||$694.00 million||$2.24||28.73|
Kellogg has higher revenue and earnings than Blue Apron Holdings. Blue Apron Holdings is trading at a lower price-to-earnings ratio than Kellogg, indicating that it is currently the more affordable of the two stocks.
Kellogg beats Blue Apron Holdings on 10 of the 15 factors compared between the two stocks.
About Blue Apron Holdings
Blue Apron Holdings, Inc. is a holding company. The Company is focused on providing recipes and fresh ingredients for making home cooking accessible. The Company offers under a novel business model in which it source, process, store and package meal ingredients and ship them directly to consumers. The Company’s core products include Meals and Wine. Meals product, which offers two meal plans, such as two person plan and family plan. Two person plan, which includes three recipes per week (chosen from six options), each of which serves two people and shipping is free. The Company provides original recipes with the pre-portioned ingredients to complement tastes and lifestyles of college graduates, young couples, families, singles, and empty nesters.
Kellogg Company is a manufacturer and marketer of ready-to-eat cereal and convenience foods. The Company’s principal products are ready-to-eat cereals and convenience foods, such as cookies, crackers, savory snacks, toaster pastries, cereal bars, fruit-flavored snacks, frozen waffles and veggie foods. Its segments include U.S. Morning Foods, which includes cereal, toaster pastries, health and wellness bars, and beverages; U.S. Snacks, which includes cookies, crackers, cereal bars, savory snacks and fruit-flavored snacks; U.S. Specialty, which represents food away from home channels, including food service, convenience, vending, Girl Scouts and food manufacturing; North America Other, which includes the U.S. Frozen, Kashi and Canada operating segments; Europe, which consists of European countries; Latin America, which consists of Central and South America and includes Mexico, and Asia Pacific, which consists of Sub-Saharan Africa, Australia and other Asian and Pacific markets.
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