Cal-Maine Foods (NASDAQ:CALM) and Renmin Tianli Group (NASDAQ:ABAC) are both basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, valuation, risk, analyst recommendations and earnings.

Insider and Institutional Ownership

59.4% of Cal-Maine Foods shares are owned by institutional investors. Comparatively, 1.8% of Renmin Tianli Group shares are owned by institutional investors. 33.0% of Cal-Maine Foods shares are owned by company insiders. Comparatively, 10.0% of Renmin Tianli Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Cal-Maine Foods pays an annual dividend of $0.34 per share and has a dividend yield of 0.7%. Renmin Tianli Group does not pay a dividend. Cal-Maine Foods pays out 12.0% of its earnings in the form of a dividend. Cal-Maine Foods has raised its dividend for 4 consecutive years.

Profitability

This table compares Cal-Maine Foods and Renmin Tianli Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cal-Maine Foods 9.76% 18.99% 15.26%
Renmin Tianli Group 2.90% 0.88% 0.85%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Cal-Maine Foods and Renmin Tianli Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cal-Maine Foods 0 2 0 0 2.00
Renmin Tianli Group 0 0 0 0 N/A

Cal-Maine Foods presently has a consensus target price of $55.00, indicating a potential upside of 11.54%. Given Cal-Maine Foods’ higher possible upside, analysts clearly believe Cal-Maine Foods is more favorable than Renmin Tianli Group.

Volatility and Risk

Cal-Maine Foods has a beta of 0.43, meaning that its share price is 57% less volatile than the S&P 500. Comparatively, Renmin Tianli Group has a beta of 1.71, meaning that its share price is 71% more volatile than the S&P 500.

Valuation & Earnings

This table compares Cal-Maine Foods and Renmin Tianli Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cal-Maine Foods $1.50 billion 1.60 $125.93 million $2.84 17.36
Renmin Tianli Group $27.00 million 0.47 $1.10 million N/A N/A

Cal-Maine Foods has higher revenue and earnings than Renmin Tianli Group.

Summary

Cal-Maine Foods beats Renmin Tianli Group on 12 of the 14 factors compared between the two stocks.

Cal-Maine Foods Company Profile

Cal-Maine Foods, Inc. produces, grades, packages, markets, and distributes shell eggs. The company offers specialty shell eggs, such as nutritionally enhanced, cage free, organic, and brown eggs under the Egg-Land's Best, Land O' Lakes, Farmhouse, and 4-Grain brand names, as well as under private labels. It sells its products to various customers, including national and regional grocery store chains, club stores, foodservice distributors, and egg product consumers primarily in the southwestern, southeastern, mid-western, and mid-Atlantic regions of the United States. The company was founded in 1957 and is based in Jackson, Mississippi.

Renmin Tianli Group Company Profile

Renmin Tianli Group, Inc., together with its subsidiaries, engages in the business of breeding, raising, and selling hogs in the People's Republic of China. The company operates in two segments, Hog Farming and Retail. The Hog Farming segment offers black market hogs, black breeder hogs, and processed black pork products primarily to hog brokers, hog farmers, and slaughterhouses. The Retail segment sells specialty processed black hog meat products under the Xiduhei name through supermarkets and to restaurants, hotels, and other outlets, as well as direct to consumers through Internet. The company was formerly known as Aoxin Tianli Group, Inc. and changed its name to Renmin Tianli Group, Inc. in October 2017. Renmin Tianli Group, Inc. was incorporated in 2009 and is headquartered in Wuhan, the People's Republic of China.

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