Analyzing WhiteWave Foods (WWAV) and Kellogg Company (K)
Kellogg Company (NYSE: K) and WhiteWave Foods (NYSE:WWAV) are both consumer staples companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, earnings, institutional ownership, profitabiliy, risk, dividends and analyst recommendations.
Earnings and Valuation
This table compares Kellogg Company and WhiteWave Foods’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Kellogg Company||$12.87 billion||1.92||$2.26 billion||$2.20||32.07|
Kellogg Company has higher revenue and earnings than WhiteWave Foods. Kellogg Company is trading at a lower price-to-earnings ratio than WhiteWave Foods, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and recommmendations for Kellogg Company and WhiteWave Foods, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Kellogg Company currently has a consensus target price of $81.33, suggesting a potential upside of 15.27%. WhiteWave Foods has a consensus target price of $56.61, suggesting a potential upside of 0.66%. Given Kellogg Company’s stronger consensus rating and higher possible upside, equities analysts clearly believe Kellogg Company is more favorable than WhiteWave Foods.
Insider & Institutional Ownership
83.7% of Kellogg Company shares are owned by institutional investors. Comparatively, 80.6% of WhiteWave Foods shares are owned by institutional investors. 1.3% of Kellogg Company shares are owned by company insiders. Comparatively, 6.2% of WhiteWave Foods shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This table compares Kellogg Company and WhiteWave Foods’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Kellogg Company pays an annual dividend of $2.08 per share and has a dividend yield of 2.9%. WhiteWave Foods does not pay a dividend. Kellogg Company pays out 94.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. WhiteWave Foods has raised its dividend for 12 consecutive years.
Volatility & Risk
Kellogg Company has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500. Comparatively, WhiteWave Foods has a beta of 1.46, suggesting that its share price is 46% more volatile than the S&P 500.
Kellogg Company beats WhiteWave Foods on 9 of the 14 factors compared between the two stocks.
About Kellogg Company
Kellogg Company is a manufacturer and marketer of ready-to-eat cereal and convenience foods. The Company’s principal products are ready-to-eat cereals and convenience foods, such as cookies, crackers, savory snacks, toaster pastries, cereal bars, fruit-flavored snacks, frozen waffles and veggie foods. Its segments include U.S. Morning Foods, which includes cereal, toaster pastries, health and wellness bars, and beverages; U.S. Snacks, which includes cookies, crackers, cereal bars, savory snacks and fruit-flavored snacks; U.S. Specialty, which represents food away from home channels, including food service, convenience, vending, Girl Scouts and food manufacturing; North America Other, which includes the U.S. Frozen, Kashi and Canada operating segments; Europe, which consists of European countries; Latin America, which consists of Central and South America and includes Mexico, and Asia Pacific, which consists of Sub-Saharan Africa, Australia and other Asian and Pacific markets.
About WhiteWave Foods
The WhiteWave Foods Company is a consumer packaged food and beverage company. The Company manufactures, markets, distributes and sells branded plant-based foods and beverages, coffee creamers and beverages, dairy products and organic produce. It operates through two segments: Americas Foods & Beverages and Europe Foods & Beverages. The Americas Foods & Beverages segment includes plant-based foods and beverages, including its Silk and So Delicious branded beverages, such as soymilk, almondmilk, coconutmilk and cashewmilk, ice cream and frozen products, and plant-based yogurts, and Vega plant-based products. The Europe Foods & Beverages segment includes plant-based foods and beverages, such as its Alpro and Provamel brand beverages using soy, almond, coconut, hazelnut, rice and oat and other plant-based ingredients, and plant-based alternatives to yogurt, culinary creams, desserts and margarine. It sells products primarily in North America, Europe and through a joint venture in China.
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