Ingredion (NYSE: INGR) and MGP Ingredients (NASDAQ:MGPI) are both consumer staples companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, earnings, risk and institutional ownership.
Institutional & Insider Ownership
83.9% of Ingredion shares are held by institutional investors. Comparatively, 98.4% of MGP Ingredients shares are held by institutional investors. 1.9% of Ingredion shares are held by company insiders. Comparatively, 23.5% of MGP Ingredients shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Risk and Volatility
Ingredion has a beta of 0.59, meaning that its stock price is 41% less volatile than the S&P 500. Comparatively, MGP Ingredients has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500.
This is a summary of recent recommendations and price targets for Ingredion and MGP Ingredients, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ingredion presently has a consensus target price of $141.67, suggesting a potential upside of 16.21%. MGP Ingredients has a consensus target price of $66.00, suggesting a potential upside of 5.16%. Given Ingredion’s higher probable upside, equities analysts plainly believe Ingredion is more favorable than MGP Ingredients.
This table compares Ingredion and MGP Ingredients’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Ingredion pays an annual dividend of $2.40 per share and has a dividend yield of 2.0%. MGP Ingredients pays an annual dividend of $0.16 per share and has a dividend yield of 0.3%. Ingredion pays out 36.1% of its earnings in the form of a dividend. MGP Ingredients pays out 8.4% 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. MGP Ingredients has raised its dividend for 4 consecutive years.
Earnings & Valuation
This table compares Ingredion and MGP Ingredients’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Ingredion||$5.80 billion||1.51||$1.05 billion||$6.65||18.33|
|MGP Ingredients||$333.96 million||3.14||$51.47 million||$1.90||33.03|
Ingredion has higher revenue and earnings than MGP Ingredients. Ingredion is trading at a lower price-to-earnings ratio than MGP Ingredients, indicating that it is currently the more affordable of the two stocks.
MGP Ingredients beats Ingredion on 10 of the 16 factors compared between the two stocks.
Ingredion Incorporated is an ingredients solutions provider. The Company manufactures and sells sweetener, starches, nutrition ingredients and biomaterial solutions derived from the wet milling and processing of corn and other starch-based materials to a range of industries, both domestically and internationally. It operates through four segments: North America, South America, Asia Pacific, and Europe, Middle East and Africa (EMEA). It turns corn, tapioca, potatoes, and other vegetables and fruits into ingredients and biomaterials for the food, beverage, paper and corrugating, brewing and other industries. Its product line includes animal feed products and edible corn oil. Its sweetener products include glucose syrups, high maltose syrup, high fructose corn syrup (HFCS), caramel color, dextrose, polyols, maltodextrins and glucose and syrup solids. Its starch-based products include both food-grade and industrial starches, and biomaterials. It also offers specialty ingredients.
About MGP Ingredients
MGP Ingredients, Inc. is a producer and supplier of distilled spirits, and specialty wheat protein and starch food ingredients. The Company’s distilled spirits include bourbon and rye whiskeys, and grain neutral spirits, including vodka and gin. The Company’s segments include distillery products and ingredient solutions. The distillery products segment consists of food grade alcohol and distillery co-products, such as distillers feed and fuel grade alcohol. The ingredient solutions segment consists of specialty starches and proteins, commodity starches and commodity proteins. The distillery products segment also includes warehouse services, including barrel put away, barrel storage, and barrel retrieval services. It is also a producer of industrial alcohol for use in both food and non-food applications. The Company’s distillery products are derived from corn and other grains (including rye, barley, wheat, barley malt and milo), and its ingredient products are derived from wheat flour.
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