Critical Survey: Tyson Foods (TSN) versus Pilgrim’s Pride Corporation (PPC)
Tyson Foods (NYSE: TSN) and Pilgrim’s Pride Corporation (NASDAQ:PPC) are both mid-cap consumer staples companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, valuation, profitabiliy, institutional ownership, analyst recommendations, dividends and risk.
This is a summary of current ratings for Tyson Foods and Pilgrim’s Pride Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Pilgrim’s Pride Corporation||0||2||3||0||2.60|
Tyson Foods currently has a consensus target price of $67.70, indicating a potential upside of 10.75%. Pilgrim’s Pride Corporation has a consensus target price of $23.33, indicating a potential upside of 3.75%. Given Tyson Foods’ higher possible upside, equities research analysts plainly believe Tyson Foods is more favorable than Pilgrim’s Pride Corporation.
Earnings & Valuation
This table compares Tyson Foods and Pilgrim’s Pride Corporation’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Tyson Foods||$36.82 billion||0.61||$3.77 billion||$4.79||12.76|
|Pilgrim’s Pride Corporation||$7.99 billion||0.70||$862.84 million||$1.65||13.63|
Tyson Foods has higher revenue and earnings than Pilgrim’s Pride Corporation. Tyson Foods is trading at a lower price-to-earnings ratio than Pilgrim’s Pride Corporation, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
71.6% of Tyson Foods shares are owned by institutional investors. Comparatively, 26.6% of Pilgrim’s Pride Corporation shares are owned by institutional investors. 2.7% of Tyson Foods shares are owned by company insiders. Comparatively, 78.8% of Pilgrim’s Pride Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Tyson Foods pays an annual dividend of $0.90 per share and has a dividend yield of 1.5%. Pilgrim’s Pride Corporation does not pay a dividend. Tyson Foods pays out 18.8% of its earnings in the form of a dividend. Tyson Foods has raised its dividend for 5 consecutive years.
This table compares Tyson Foods and Pilgrim’s Pride Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Pilgrim’s Pride Corporation||5.21%||46.08%||13.31%|
Risk & Volatility
Tyson Foods has a beta of 0.25, meaning that its share price is 75% less volatile than the S&P 500. Comparatively, Pilgrim’s Pride Corporation has a beta of 0.16, meaning that its share price is 84% less volatile than the S&P 500.
Tyson Foods beats Pilgrim’s Pride Corporation on 9 of the 17 factors compared between the two stocks.
About Tyson Foods
Tyson Foods, Inc. is a food company, which is engaged in offering chicken, beef and pork, as well as prepared foods. The Company offers food products under Tyson, Jimmy Dean, Hillshire Farm, Sara Lee, Ball Park, Wright, Aidells and State Fair brands. The Company operates through four segments: Chicken, Beef, Pork and Prepared Foods. It operates a vertically integrated chicken production process, which consists of breeding stock, contract growers, feed production, processing, further-processing, marketing and transportation of chicken and related allied products, including animal and pet food ingredients. Through its subsidiary, Cobb-Vantress, Inc. (Cobb), the Company is engaged in supplying poultry breeding stock across the world. It produces a range of fresh, frozen and refrigerated food products. Its products are marketed and sold by its sales staff to grocery retailers, grocery wholesalers, meat distributors, warehouse club stores and military commissaries, among others.
About Pilgrim’s Pride Corporation
Pilgrim’s Pride Corporation is a retail feed store. It is a producer and seller of chicken with operations in the United States, Mexico and Puerto Rico. It is engaged in the production, processing, marketing and distribution of fresh, frozen and value-added chicken products to retailers, distributors and foodservice operators. It offers a range of products to its customers through national and international distribution channels. Its fresh chicken products consist of refrigerated (non-frozen) whole chickens, whole cut-up chickens and selected chicken parts that are either marinated or non-marinated. Its prepared chicken products include ready-to-cook and individually frozen chicken parts, strips, nuggets and patties, some of which are either breaded or non-breaded and either marinated or non-marinated. As of December 25, 2016, the Company marketed its portfolio of fresh, prepared and value-added chicken products across the United States, Mexico and in approximately 80 other countries.
Receive News & Ratings for Tyson Foods Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Tyson Foods Inc. and related companies with MarketBeat.com's FREE daily email newsletter.