Financial Review: ConAgra Foods (CAG) and Blue Apron Holdings (APRN)

Blue Apron Holdings (NASDAQ: APRN) and ConAgra Foods (NYSE:CAG) are both non-cyclical consumer goods & services companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, institutional ownership, risk and dividends.

Dividends

ConAgra Foods pays an annual dividend of $0.85 per share and has a dividend yield of 2.4%. Blue Apron Holdings does not pay a dividend. ConAgra Foods pays out 57.8% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares Blue Apron Holdings and ConAgra Foods’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Blue Apron Holdings N/A N/A N/A N/A N/A
ConAgra Foods $7.83 billion 1.86 $1.57 billion $1.47 23.82

ConAgra Foods has higher revenue and earnings than Blue Apron Holdings.

Profitability

This table compares Blue Apron Holdings and ConAgra Foods’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Blue Apron Holdings -13.29% N/A -37.22%
ConAgra Foods 7.43% 20.29% 7.56%

Insider & Institutional Ownership

78.4% of ConAgra Foods shares are held by institutional investors. 0.8% of ConAgra Foods shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations for Blue Apron Holdings and ConAgra Foods, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Blue Apron Holdings 1 10 3 0 2.14
ConAgra Foods 1 2 7 0 2.60

Blue Apron Holdings currently has a consensus price target of $7.67, indicating a potential upside of 26.51%. ConAgra Foods has a consensus price target of $43.90, indicating a potential upside of 25.39%. Given Blue Apron Holdings’ higher possible upside, research analysts clearly believe Blue Apron Holdings is more favorable than ConAgra Foods.

Summary

ConAgra Foods beats Blue Apron Holdings on 9 of the 11 factors compared between the two stocks.

Blue Apron Holdings Company Profile

Blue Apron Holdings, Inc. is a holding company. The Company is focused on providing recipes and fresh ingredients for making home cooking accessible. The Company offers under a novel business model in which it source, process, store and package meal ingredients and ship them directly to consumers. The Company’s core products include Meals and Wine. Meals product, which offers two meal plans, such as two person plan and family plan. Two person plan, which includes three recipes per week (chosen from six options), each of which serves two people and shipping is free. The Company provides original recipes with the pre-portioned ingredients to complement tastes and lifestyles of college graduates, young couples, families, singles, and empty nesters.

ConAgra Foods Company Profile

Conagra Brands, Inc., formerly ConAgra Foods, Inc., operates as a packaged food company. The Company operates through two segments: Consumer Foods and Commercial Foods. The Company sells branded and customized food products, as well as commercially branded foods. It also supplies vegetable, spice and grain products to a range of restaurants, foodservice operators and commercial customers. Conagra Foodservice offers products to restaurants, retailers, commercial customers and other foodservice suppliers. The Company also operates in the countries outside the United States, such as Canada and Mexico. The Company’s brands include Marie Callender’s, Healthy Choice, Slim Jim, Hebrew National, Orville Redenbacher’s, Peter Pan, Reddi-wip, PAM, Snack Pack, Banquet, Chef Boyardee, Egg Beaters, Rosarita, Fleischmann’s and Hunt’s. The Company sells its products in grocery, convenience, mass merchandise and club stores.

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