Pilgrim's Pride (NASDAQ:PPC) and SunOpta (NASDAQ:STKL) are both consumer staples companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, institutional ownership, earnings and risk.
Risk and Volatility
Pilgrim's Pride has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500. Comparatively, SunOpta has a beta of 2.02, suggesting that its share price is 102% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current recommendations for Pilgrim's Pride and SunOpta, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Pilgrim's Pride | 0 | 1 | 3 | 0 | 2.75 |
SunOpta | 0 | 0 | 4 | 0 | 3.00 |
Pilgrim's Pride presently has a consensus target price of $23.00, suggesting a potential downside of 5.85%. SunOpta has a consensus target price of $17.75, suggesting a potential upside of 20.26%. Given SunOpta's stronger consensus rating and higher possible upside, analysts plainly believe SunOpta is more favorable than Pilgrim's Pride.
Earnings & Valuation
This table compares Pilgrim's Pride and SunOpta's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Pilgrim's Pride | $11.41 billion | 0.52 | $455.92 million | $1.62 | 15.08 |
SunOpta | $1.19 billion | 1.29 | $-760,000.00 | ($0.37) | -39.89 |
Pilgrim's Pride has higher revenue and earnings than SunOpta. SunOpta is trading at a lower price-to-earnings ratio than Pilgrim's Pride, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
16.1% of Pilgrim's Pride shares are owned by institutional investors. Comparatively, 65.4% of SunOpta shares are owned by institutional investors. 78.7% of Pilgrim's Pride shares are owned by company insiders. Comparatively, 3.5% of SunOpta shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Profitability
This table compares Pilgrim's Pride and SunOpta's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Pilgrim's Pride | 1.55% | 9.83% | 3.33% |
SunOpta | -0.09% | 1.66% | 0.24% |
Summary
Pilgrim's Pride beats SunOpta on 8 of the 14 factors compared between the two stocks.