Tyson Foods (NYSE: TSN) and Industrias Bachoco, S.A. de C.V. (NYSE:IBA) are both mid-cap consumer staples companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, dividends, earnings, profitability and institutional ownership.
Insider and Institutional Ownership
70.9% of Tyson Foods shares are owned by institutional investors. Comparatively, 3.8% of Industrias Bachoco, S.A. de C.V. shares are owned by institutional investors. 2.7% of Tyson Foods shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This is a summary of current ratings and target prices for Tyson Foods and Industrias Bachoco, S.A. de C.V., as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Industrias Bachoco, S.A. de C.V.||0||0||0||0||N/A|
Tyson Foods currently has a consensus price target of $69.20, indicating a potential upside of 3.48%. Given Tyson Foods’ higher probable upside, analysts plainly believe Tyson Foods is more favorable than Industrias Bachoco, S.A. de C.V..
Valuation & Earnings
This table compares Tyson Foods and Industrias Bachoco, S.A. de C.V.’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Tyson Foods||$37.27 billion||0.66||$3.78 billion||$4.75||14.08|
|Industrias Bachoco, S.A. de C.V.||$3.10 billion||1.08||$446.78 million||$4.38||15.31|
Tyson Foods has higher revenue and earnings than Industrias Bachoco, S.A. de C.V.. Tyson Foods is trading at a lower price-to-earnings ratio than Industrias Bachoco, S.A. de C.V., indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Tyson Foods has a beta of 0.26, suggesting that its stock price is 74% less volatile than the S&P 500. Comparatively, Industrias Bachoco, S.A. de C.V. has a beta of 0.37, suggesting that its stock price is 63% less volatile than the S&P 500.
This table compares Tyson Foods and Industrias Bachoco, S.A. de C.V.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Industrias Bachoco, S.A. de C.V.||7.54%||12.91%||9.16%|
Tyson Foods pays an annual dividend of $0.90 per share and has a dividend yield of 1.3%. Industrias Bachoco, S.A. de C.V. pays an annual dividend of $0.82 per share and has a dividend yield of 1.2%. Tyson Foods pays out 18.9% of its earnings in the form of a dividend. Industrias Bachoco, S.A. de C.V. pays out 18.7% 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. Tyson Foods has raised its dividend for 5 consecutive years. Tyson Foods is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Tyson Foods beats Industrias Bachoco, S.A. de C.V. on 10 of the 16 factors compared between the two stocks.
Tyson Foods Company Profile
Tyson Foods, Inc. is a food company, which is engaged in offering chicken, beef and pork, as well as prepared foods. The Company offers food products under Tyson, Jimmy Dean, Hillshire Farm, Sara Lee, Ball Park, Wright, Aidells and State Fair brands. The Company operates through four segments: Chicken, Beef, Pork and Prepared Foods. It operates a vertically integrated chicken production process, which consists of breeding stock, contract growers, feed production, processing, further-processing, marketing and transportation of chicken and related allied products, including animal and pet food ingredients. Through its subsidiary, Cobb-Vantress, Inc. (Cobb), the Company is engaged in supplying poultry breeding stock across the world. It produces a range of fresh, frozen and refrigerated food products. Its products are marketed and sold by its sales staff to grocery retailers, grocery wholesalers, meat distributors, warehouse club stores and military commissaries, among others.
Industrias Bachoco, S.A. de C.V. Company Profile
Industrias Bachoco, S.A.B. de C.V. (Bachoco) is a holding company. The Company owns and manages over 1,000 facilities, organized in approximately 10 production complexes and over 60 distribution centers in Mexico, and a production complex in the United States. Bachoco operates through two segments: poultry and others. The poultry segment consists of chicken and egg operations. The others segment includes the operations of pigs, balanced feed for animal consumption and other by-products. The Company participates in the food industry in Mexico and in the United States, mainly in the poultry industry. In Mexico, the Company’s core business is poultry (chicken and egg products). It also produces and sells a range of other products, which it refers to as other business lines, which include the production and selling of balanced feed, live swine, beef and turkey products, as well as a laboratory that produces vaccines for the poultry industry and other similar industries.
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