KHC vs. LW, BRBR, FRPT, LANC, UTZ, THS, VITL, OTLY, BYND, and FREE
Should you be buying Kraft Heinz stock or one of its competitors? The main competitors of Kraft Heinz include Lamb Weston (LW), BellRing Brands (BRBR), Freshpet (FRPT), Lancaster Colony (LANC), Utz Brands (UTZ), TreeHouse Foods (THS), Vital Farms (VITL), Oatly Group (OTLY), Beyond Meat (BYND), and Whole Earth Brands (FREE).
Kraft Heinz (NASDAQ:KHC) and Lamb Weston (NYSE:LW) are both consumer staples companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, earnings, community ranking, profitability, media sentiment, analyst recommendations, risk and institutional ownership.
Kraft Heinz has higher revenue and earnings than Lamb Weston. Lamb Weston is trading at a lower price-to-earnings ratio than Kraft Heinz, indicating that it is currently the more affordable of the two stocks.
78.2% of Kraft Heinz shares are owned by institutional investors. Comparatively, 89.6% of Lamb Weston shares are owned by institutional investors. 0.3% of Kraft Heinz shares are owned by company insiders. Comparatively, 1.7% of Lamb Weston shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Kraft Heinz currently has a consensus price target of $38.83, indicating a potential upside of 16.41%. Lamb Weston has a consensus price target of $87.70, indicating a potential upside of 54.65%. Given Lamb Weston's stronger consensus rating and higher probable upside, analysts clearly believe Lamb Weston is more favorable than Kraft Heinz.
Lamb Weston has a net margin of 11.22% compared to Kraft Heinz's net margin of 10.62%. Lamb Weston's return on equity of 44.06% beat Kraft Heinz's return on equity.
Kraft Heinz pays an annual dividend of $1.60 per share and has a dividend yield of 4.8%. Lamb Weston pays an annual dividend of $1.44 per share and has a dividend yield of 2.5%. Kraft Heinz pays out 69.9% of its earnings in the form of a dividend. Lamb Weston pays out 19.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
In the previous week, Lamb Weston had 55 more articles in the media than Kraft Heinz. MarketBeat recorded 72 mentions for Lamb Weston and 17 mentions for Kraft Heinz. Kraft Heinz's average media sentiment score of 0.33 beat Lamb Weston's score of -0.11 indicating that Kraft Heinz is being referred to more favorably in the media.
Kraft Heinz received 290 more outperform votes than Lamb Weston when rated by MarketBeat users. Likewise, 65.28% of users gave Kraft Heinz an outperform vote while only 64.39% of users gave Lamb Weston an outperform vote.
Kraft Heinz has a beta of 0.53, meaning that its share price is 47% less volatile than the S&P 500. Comparatively, Lamb Weston has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500.
Summary
Lamb Weston beats Kraft Heinz on 12 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding KHC and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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