Mondelez International (NASDAQ: MDLZ) and Conagra Brands (NYSE:CAG) are both large-cap non-cyclical consumer goods & services companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.
Volatility and Risk
Mondelez International has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500. Comparatively, Conagra Brands has a beta of 0.37, meaning that its stock price is 63% less volatile than the S&P 500.
Earnings and Valuation
This table compares Mondelez International and Conagra Brands’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Mondelez International||$25.92 billion||2.53||$1.66 billion||$1.44||30.46|
|Conagra Brands||$7.83 billion||1.91||$639.30 million||$1.68||22.18|
Mondelez International has higher revenue and earnings than Conagra Brands. Conagra Brands is trading at a lower price-to-earnings ratio than Mondelez International, indicating that it is currently the more affordable of the two stocks.
This table compares Mondelez International and Conagra Brands’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings for Mondelez International and Conagra Brands, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Mondelez International currently has a consensus price target of $49.58, suggesting a potential upside of 13.05%. Conagra Brands has a consensus price target of $41.56, suggesting a potential upside of 11.53%. Given Mondelez International’s stronger consensus rating and higher probable upside, equities analysts clearly believe Mondelez International is more favorable than Conagra Brands.
Mondelez International pays an annual dividend of $0.88 per share and has a dividend yield of 2.0%. Conagra Brands pays an annual dividend of $0.85 per share and has a dividend yield of 2.3%. Mondelez International pays out 61.1% of its earnings in the form of a dividend. Conagra Brands pays out 50.6% 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. Conagra Brands is clearly the better dividend stock, given its higher yield and lower payout ratio.
Insider & Institutional Ownership
75.8% of Mondelez International shares are owned by institutional investors. Comparatively, 80.4% of Conagra Brands shares are owned by institutional investors. 3.6% of Mondelez International shares are owned by company insiders. Comparatively, 0.8% of Conagra Brands shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Mondelez International beats Conagra Brands on 10 of the 17 factors compared between the two stocks.
About Mondelez International
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.
About Conagra Brands
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.
Receive News & Ratings for Mondelez International Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Mondelez International and related companies with MarketBeat.com's FREE daily email newsletter.