Head to Head Comparison: Campbell’s (NASDAQ:CPB) & Premier Foods (OTCMKTS:PRRFY)

Premier Foods (OTCMKTS:PRRFY) and Campbell’s (NASDAQ:CPB) are both mid-cap consumer staples companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, analyst recommendations, earnings and profitability.

Dividends

Premier Foods pays an annual dividend of $0.18 per share and has a dividend yield of 1.3%. Campbell’s pays an annual dividend of $1.56 per share and has a dividend yield of 7.1%. Campbell’s pays out 77.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Risk and Volatility

Premier Foods has a beta of 0.41, suggesting that its stock price is 59% less volatile than the S&P 500. Comparatively, Campbell’s has a beta of 0.02, suggesting that its stock price is 98% less volatile than the S&P 500.

Earnings and Valuation

This table compares Premier Foods and Campbell’s”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Premier Foods	$1.58 billion	1.49	$183.09 million	N/A	N/A
Campbell’s	$10.25 billion	0.64	$602.00 million	$2.02	10.93

Campbell’s has higher revenue and earnings than Premier Foods.

Analyst Ratings

This is a summary of recent ratings for Premier Foods and Campbell’s, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Premier Foods	0	0	0	0	0.00
Campbell’s	8	12	0	0	1.60

Campbell’s has a consensus target price of $21.88, suggesting a potential downside of 0.88%. Given Campbell’s’ stronger consensus rating and higher possible upside, analysts plainly believe Campbell’s is more favorable than Premier Foods.

Profitability

This table compares Premier Foods and Campbell’s’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Premier Foods	N/A	N/A	N/A
Campbell’s	6.12%	18.04%	4.74%

Institutional and Insider Ownership

52.3% of Campbell’s shares are owned by institutional investors. 19.8% of Campbell’s shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Campbell’s beats Premier Foods on 10 of the 13 factors compared between the two stocks.

About Premier Foods

Premier Foods plc, together with its subsidiaries, manufactures and distributes branded and own label food products in the United Kingdom, other European countries, and internationally. The company operates through Grocery, Sweet Treats, and international segments. It offers a portfolio of product categories, including flavorings and seasonings under the Bisto, OXO, Paxo, and Saxa brands; cooking sauces and accompaniments under the Sharwood's, Loyd Grossman, Spice Tailor and Homepride brands; quick meals, snacks, and soups under the Batchelors and Smash brands; ambient desserts under the Ambrosia, Bird's, and Angel Delight brands; and ambient cakes under the Mr Kipling and Cadbury brands. The company also provides dumplings under the Atora brand name; plain flour under the Be-Ro brand; dried milk under the Marvel brand name; plain and self-raising flour under the McDougalls brand; and plant based food under the Plantastic brand name. It offers its products through supermarkets, discounters, convenience stores, and wholesale and food service facilities, as well as through e-commerce channels. The company was founded in 1975 and is headquartered in Saint Albans, the United Kingdom.

About Campbell’s

The Campbell’s Company, formerly known as Campbell Soup Company, together with its subsidiaries, manufactures and markets food and beverage products in the United States and internationally. The company operates through Meals & Beverages and Snacks segments. The Meals & Beverages segment engages in the retail and foodservice businesses in the United States and Canada. This segment provides Campbell’s condensed and ready-to-serve soups; Swanson broth and stocks; Pacific Foods broth, soups, and non-dairy beverages; Prego pasta sauces; Pace Mexican sauces; Campbell’s gravies, pasta, beans, and dinner sauces; Swanson canned poultry; V8 juices and beverages; Campbell’s tomato juice; and snacking products in foodservice in Canada. The Snacks segment retails Pepperidge Farm cookies, crackers, fresh bakery, and frozen products, which include Goldfish crackers, Snyder’s of Hanover pretzels, Lance sandwich crackers, Cape Cod and Kettle Brand potato chips, Late July snacks, Snack Factory pretzel crisps, Pop Secret popcorn, and other snacking products. This segment is also involved in the retail business in Latin America. It sells its products through retail food chains, mass discounters and merchandisers, club stores, convenience stores, drug stores, and dollar stores, as well as e-commerce and other retail, commercial, and non-commercial establishments, and independent contractor distributors. The company was founded in 1869 and is headquartered in Camden, New Jersey.