Mondelez International (KFT) & Dean Foods (DF) Critical Analysis

Mondelez International (NYSE: KFT) and Dean Foods (NYSE:DF) are both non-cyclical consumer goods & services companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.

Profitability

This table compares Mondelez International and Dean Foods’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mondelez International 7.23% 7.78% 2.78%
Dean Foods 0.70% 16.63% 3.92%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Mondelez International and Dean Foods, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mondelez International 0 0 0 0 N/A
Dean Foods 3 7 3 0 2.00

Dean Foods has a consensus target price of $14.67, suggesting a potential upside of 37.59%. Given Dean Foods’ higher probable upside, analysts plainly believe Dean Foods is more favorable than Mondelez International.

Valuation and Earnings

This table compares Mondelez International and Dean Foods’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Mondelez International N/A N/A N/A N/A N/A
Dean Foods $7.91 billion 0.12 $376.23 million $0.60 17.77

Dean Foods has higher revenue and earnings than Mondelez International.

Dividends

Dean Foods pays an annual dividend of $0.36 per share and has a dividend yield of 3.4%. Mondelez International does not pay a dividend. Dean Foods pays out 60.0% of its earnings in the form of a dividend.

Summary

Dean Foods beats Mondelez International on 6 of the 8 factors compared between the two stocks.

Mondelez International Company Profile

Mondelez International, Inc. is a snack company. The Company manufactures and markets snack food and beverage products for consumers. It operates through four segments: Latin America, Asia, Middle East, and Africa (AMEA), Europe and North America. As of December 31, 2016, its brands spanned five product categories: Biscuits (including cookies, crackers and salted snacks); Chocolate; Gum and candy; Beverages (including coffee and powdered beverages), and Cheese and grocery. Itsportfolio includes various snack brands, including Nabisco, Oreo, LU and belVita biscuits; Cadbury, Milka, Cadbury Dairy Milk and Toblerone chocolate; Trident gum; Halls candy, and Tang powdered beverages. The Company sells its products to supermarket chains, wholesalers, supercenters, club stores, mass merchandisers, distributors, convenience stores, gasoline stations, drug stores, value stores and retail food outlets. As of December 31, 2016, it sold its products to consumers in approximately 165 countries.

Dean Foods Company Profile

Dean Foods Company is a food and beverage company. The Company processes and distributes fluid milk, and other dairy and dairy case products in the United States. It is engaged in manufacturing, marketing, selling and distributing a range of branded and private label dairy and dairy case products. It offers branded and private label dairy case products, including fluid milk, ice cream, cultured dairy products, creamers, ice cream mix and other dairy products to retailers, distributors, foodservice outlets, educational institutions and governmental entities across the United States. It also offers juices, teas and bottled water. As of December 31, 2016, the Company had over 50 national, regional and local dairy brands, as well as private labels. As of December 31, 2016, the Company’s national, local and regional licensed brands included Alta Dena, Hygeia, PET, Arctic Splash, Jilbert, Pog, Barbers Dairy, Purity, Berkeley Farms, Land-O-Sun & design and ReadyLeaf, Broughton.

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