Analyzing Bridgford Foods (NASDAQ:BRID) & US Foods (NYSE:USFD)

Bridgford Foods (NASDAQ:BRID) and US Foods (NYSE:USFD) are both consumer staples companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, profitability, risk, institutional ownership and earnings.

Analyst Ratings

This is a summary of current recommendations and price targets for Bridgford Foods and US Foods, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bridgford Foods	1	0	0	0	1.00
US Foods	0	3	10	0	2.77

US Foods has a consensus target price of $105.50, suggesting a potential upside of 10.64%. Given US Foods’ stronger consensus rating and higher probable upside, analysts plainly believe US Foods is more favorable than Bridgford Foods.

Risk & Volatility

Bridgford Foods has a beta of -0.2, indicating that its stock price is 120% less volatile than the S&P 500. Comparatively, US Foods has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500.

Insider and Institutional Ownership

4.7% of Bridgford Foods shares are held by institutional investors. Comparatively, 98.8% of US Foods shares are held by institutional investors. 80.7% of Bridgford Foods shares are held by insiders. Comparatively, 0.7% of US Foods shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Bridgford Foods and US Foods”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bridgford Foods	$233.16 million	0.26	-$13.36 million	($1.55)	-4.32
US Foods	$39.42 billion	0.53	$676.00 million	$2.97	32.10

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

Profitability

This table compares Bridgford Foods and US Foods’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bridgford Foods	-6.07%	-12.27%	-9.60%
US Foods	1.71%	19.37%	6.14%

Summary

US Foods beats Bridgford Foods on 13 of the 14 factors compared between the two stocks.

About Bridgford Foods

Bridgford Foods Corporation, together with its subsidiaries, manufactures, markets, and distributes frozen and snack food products in the United States. It operates in two segments, Frozen Food Products and Snack Food Products. The company offers biscuits, bread dough items, roll dough items, and dry sausage and beef jerky products, as well as ready to eat sandwiches and non-refrigerated snack food products. It provides frozen food products to food service and retail customers through wholesalers, cooperatives, and distributors; and snack food items to supermarkets, mass merchandise, and convenience retail stores through customer-owned distribution centers, as well as a direct store delivery network. The company was founded in 1932 and is headquartered in Dallas, Texas. Bridgford Foods Corporation operates as a subsidiary of Bridgford Industries Incorporated.

About US Foods

US Foods Holding Corp., together with its subsidiaries, engages in marketing, sale, and distribution of fresh, frozen, and dry food and non-food products to foodservice customers in the United States. The company's customers include independently owned single and multi-unit restaurants, regional concepts, national restaurant chains, hospitals, nursing homes, hotels and motels, country clubs, government and military organizations, colleges and universities, and retail locations. The company was formerly known as USF Holding Corp. and changed its name to US Foods Holding Corp. in February 2016. US Foods Holding Corp. was incorporated in 2007 and is headquartered in Rosemont, Illinois.