Sysco Corporation (SYY) & Boulder Brands (SMBL) Critical Comparison

Sysco Corporation (NYSE: SYY) and Boulder Brands (NASDAQ:SMBL) are both consumer staples companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, profitability, dividends, valuation, analyst recommendations and earnings.

Insider & Institutional Ownership

79.9% of Sysco Corporation shares are owned by institutional investors. 8.8% of Sysco Corporation shares are owned 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.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Sysco Corporation and Boulder Brands, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sysco Corporation 0 7 6 0 2.46
Boulder Brands 0 0 0 0 N/A

Sysco Corporation presently has a consensus price target of $56.09, suggesting a potential upside of 4.01%. Given Sysco Corporation’s higher possible upside, research analysts plainly believe Sysco Corporation is more favorable than Boulder Brands.

Dividends

Sysco Corporation pays an annual dividend of $1.32 per share and has a dividend yield of 2.4%. Boulder Brands does not pay a dividend. Sysco Corporation pays out 63.2% of its earnings in the form of a dividend. Boulder Brands has increased its dividend for 46 consecutive years.

Valuation & Earnings

This table compares Sysco Corporation and Boulder Brands’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Sysco Corporation $55.37 billion 0.51 $3.03 billion $2.09 25.80
Boulder Brands N/A N/A N/A N/A N/A

Sysco Corporation has higher revenue and earnings than Boulder Brands.

Profitability

This table compares Sysco Corporation and Boulder Brands’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sysco Corporation 2.06% 53.25% 7.62%
Boulder Brands 0.61% 0.59% 0.50%

Summary

Sysco Corporation beats Boulder Brands on 9 of the 11 factors compared between the two stocks.

Sysco Corporation Company Profile

Sysco Corporation (Sysco) is a distributor of food and related products primarily to the foodservice or food-away-from-home industry. The Company’s segments include Broadline, SYGMA and Other. The Broadline segment includes its Broadline operations located in the Bahamas, Canada, Costa Rica, Ireland, Mexico and the United States. Broadline operating companies distribute a full line of food products and a range of non-food products to both traditional and chain restaurant customers, hospitals, schools, hotels, industrial caterers and other venues where foodservice products are served. SYGMA operating companies distribute a full line of food products and a range of non-food products to certain chain restaurant customer locations. The Other segment includes the Company’s specialty produce; custom-cut meat operations; lodging industry segments; a company that distributes specialty imported products; a company that distributes to international customers, and Sysco Ventures platform.

Boulder Brands Company Profile

Boulder Brands, Inc. is a natural consumer packaged food company. The Company’s health and wellness platform consists of brands that target specific health trends: the Glutino Food Group and Udi’s Healthy Foods, LLC’s Gluten Free brands for gluten free diets; the Earth Balance brand for plant-based diets; the Level Life brand for diabetic diets; EVOL Food branded foods for consumers seeking convenient foods made with pure and simple ingredients, and the Smart Balance brand for heart healthier diets. The Company distributes its products in all retail channels, including natural, grocery, club and mass merchandise. The Company also has a presence in the foodservice and industrial channels. The Company operates in two segments: Natural and Balance. The Natural segment consists of Udi’s, Glutino and EVOL branded products. The Balance segment consists of Smart Balance, Earth Balance and Level Life branded products.

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