Reviewing Conagra Brands (NYSE:CAG) & Bunzl (OTCMKTS:BZLFY)

Conagra Brands (NYSE:CAG) and Bunzl (OTCMKTS:BZLFY) are both mid-cap consumer staples companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.

Insider & Institutional Ownership

83.8% of Conagra Brands shares are owned by institutional investors. Comparatively, 0.1% of Bunzl shares are owned by institutional investors. 0.6% of Conagra Brands shares are owned by company insiders. Comparatively, 1.0% of Bunzl shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Conagra Brands and Bunzl’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Conagra Brands	7.42%	11.72%	4.95%
Bunzl	N/A	N/A	N/A

Earnings and Valuation

This table compares Conagra Brands and Bunzl”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Conagra Brands	$11.45 billion	0.75	$1.15 billion	$1.76	10.17
Bunzl	$15.05 billion	0.62	$640.23 million	N/A	N/A

Conagra Brands has higher earnings, but lower revenue than Bunzl.

Volatility & Risk

Conagra Brands has a beta of 0.03, suggesting that its share price is 97% less volatile than the S&P 500. Comparatively, Bunzl has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500.

Dividends

Conagra Brands pays an annual dividend of $1.40 per share and has a dividend yield of 7.8%. Bunzl pays an annual dividend of $0.25 per share and has a dividend yield of 1.8%. Conagra Brands pays out 79.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Conagra Brands has increased its dividend for 5 consecutive years. Conagra Brands is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of current ratings and target prices for Conagra Brands and Bunzl, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Conagra Brands	3	10	1	0	1.86
Bunzl	0	5	1	3	2.78

Conagra Brands presently has a consensus price target of $21.50, indicating a potential upside of 20.11%. Given Conagra Brands’ higher probable upside, equities analysts clearly believe Conagra Brands is more favorable than Bunzl.

Summary

Conagra Brands beats Bunzl on 9 of the 15 factors compared between the two stocks.

About Conagra Brands

Conagra Brands, Inc., together with its subsidiaries, operates as a consumer packaged goods food company primarily in the United States. The company operates through Grocery & Snacks, Refrigerated & Frozen, International, and Foodservice segments. The Grocery & Snacks segment primarily offers shelf stable food products through various retail channels. The Refrigerated & Frozen segment provides temperature-controlled food products through various retail channels. The International segment offers food products in various temperature states through retail and foodservice channels outside of the United States. The Foodservice segment offers branded and customized food products, including meals, entrees, sauces, and various custom-manufactured culinary products packaged for restaurants and other foodservice establishments. The company sells its products under the Birds Eye, Marie Callender's, Duncan Hines, Healthy Choice, Slim Jim, Reddi-wip, Angie's, BOOMCHICKAPOP, Duke's, Earth Balance, Gardein, and Frontera brands. The company was incorporated in 1919 and is headquartered in Chicago, Illinois.

About Bunzl

Bunzl plc operates as a distribution and services company in the North America, Continental Europe, the United Kingdom, Ireland, and internationally. The company offers food packaging, films, labels, cleaning and hygiene supplies, and personal protection equipment to grocery stores, supermarkets, and convenience stores. It also provides food packaging, disposable tableware, guest amenities, catering equipment, agricultural supplies, cleaning and hygiene products, and safety items to hotels, restaurants, contract caterers, food processors, commercial growers, and the leisure sector; and gloves, boots, hard hats, ear and eye protection, and other workwear, as well as cleaning and hygiene supplies, and asset protection products to industrial and construction, and ecommerce sectors. In addition, the company offers chemicals and hygiene paper to cleaning and facilities management companies, and industrial and public sector customers; gloves, masks, swabs, gowns, bandages, and other healthcare related equipment; and healthcare devices to hospitals, care homes, and other facilities serving the healthcare sector. Further, it provides packaging and other store supplies to retail chains, boutiques, department stores, home improvement chains, office supply companies, and related e-commerce sales channels. Bunzl plc was founded in 1854 and is headquartered in London, the United Kingdom.