Head-To-Head Review: Mondelez International (NASDAQ:MDLZ) vs. US Foods (NYSE:USFD)

Mondelez International (NASDAQ:MDLZ) and US Foods (NYSE:USFD) are both large-cap consumer staples companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, valuation, earnings and dividends.

Insider & Institutional Ownership

78.3% of Mondelez International shares are held by institutional investors. Comparatively, 98.8% of US Foods shares are held by institutional investors. 0.4% of Mondelez International shares are held by company insiders. Comparatively, 0.7% of US Foods shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Mondelez International and US Foods”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mondelez International	$39.30 billion	1.98	$2.45 billion	$2.01	30.11
US Foods	$39.42 billion	0.54	$676.00 million	$2.97	32.72

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

Analyst Recommendations

This is a summary of current ratings and price targets for Mondelez International and US Foods, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mondelez International	0	10	12	1	2.61
US Foods	1	3	11	0	2.67

Mondelez International currently has a consensus price target of $66.44, indicating a potential upside of 9.79%. US Foods has a consensus price target of $107.00, indicating a potential upside of 10.12%. Given US Foods’ stronger consensus rating and higher possible upside, analysts clearly believe US Foods is more favorable than Mondelez International.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Mondelez International	6.64%	14.14%	5.17%
US Foods	1.71%	19.37%	6.14%

Volatility & Risk

Mondelez International has a beta of 0.39, meaning that its stock price is 61% less volatile than the S&P 500. Comparatively, US Foods has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500.

Summary

US Foods beats Mondelez International on 10 of the 15 factors compared between the two stocks.

About Mondelez International

Mondelez International, Inc., through its subsidiaries, manufactures, markets, and sells snack food and beverage products in the Latin America, North America, Asia, the Middle East, Africa, and Europe. It provides biscuits and baked snacks, including cookies, crackers, salted snacks, snack bars, and cakes and pastries; chocolates; and gums and candies, as well as various cheese and grocery, and powdered beverage products. The company's brand portfolio includes Oreo, Ritz, LU, CLIF Bar, and Tate's Bake Shop biscuits and baked snacks, as well as Cadbury Dairy Milk, Milka, and Toblerone chocolate. It serves supermarket chains, wholesalers, supercenters, club stores, mass merchandisers, distributors, convenience stores, gasoline stations, drug stores, value stores, and other retail food outlets through direct store delivery, company-owned and satellite warehouses, distribution centers, third party distributors, and other facilities, as well as through independent sales offices and agents. The company also sells products directly to businesses and consumers through e-retail platforms, retailer digital platforms, as well as through its direct-to-consumer websites and social media platforms. Mondelez International, Inc. was formerly known as Kraft Foods Inc. and changed its name to Mondelez International, Inc. in October 2012. The company was incorporated in 2000 and is headquartered in Chicago, Illinois.

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.