Critical Contrast: ConAgra Foods (CAG) versus Amira Nature Foods (ANFI)
ConAgra Foods (NYSE: CAG) and Amira Nature Foods (NYSE:ANFI) are both consumer staples companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, profitability, institutional ownership and earnings.
Institutional & Insider Ownership
78.4% of ConAgra Foods shares are owned by institutional investors. Comparatively, 12.5% of Amira Nature Foods shares are owned by institutional investors. 0.8% of ConAgra Foods shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This table compares ConAgra Foods and Amira Nature Foods’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Amira Nature Foods||N/A||N/A||N/A|
Earnings & Valuation
This table compares ConAgra Foods and Amira Nature Foods’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|ConAgra Foods||$7.83 billion||1.84||$1.57 billion||$1.47||23.47|
|Amira Nature Foods||$551.88 million||0.37||$70.71 million||N/A||N/A|
ConAgra Foods has higher revenue and earnings than Amira Nature Foods.
Volatility & Risk
ConAgra Foods has a beta of 0.33, meaning that its stock price is 67% less volatile than the S&P 500. Comparatively, Amira Nature Foods has a beta of -0.16, meaning that its stock price is 116% less volatile than the S&P 500.
ConAgra Foods pays an annual dividend of $0.85 per share and has a dividend yield of 2.5%. Amira Nature Foods does not pay a dividend. ConAgra Foods pays out 57.8% of its earnings in the form of a dividend.
This is a breakdown of recent ratings and price targets for ConAgra Foods and Amira Nature Foods, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Amira Nature Foods||0||1||1||0||2.50|
ConAgra Foods presently has a consensus price target of $43.90, suggesting a potential upside of 27.23%. Amira Nature Foods has a consensus price target of $13.00, suggesting a potential upside of 132.56%. Given Amira Nature Foods’ higher possible upside, analysts clearly believe Amira Nature Foods is more favorable than ConAgra Foods.
ConAgra Foods beats Amira Nature Foods on 13 of the 15 factors compared between the two stocks.
About ConAgra Foods
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.
About Amira Nature Foods
Amira Nature Foods Ltd is primarily engaged in the business of processing and selling packaged Indian specialty rice, primarily basmati rice and other food products. The Company sells Basmati rice and other specialty rice, under its Amira brand, as well as under other third-party brands. It also sells non-basmati rice. It has developed a line of Amira branded products to complement its packaged rice offerings, including edible oil, snacks, ready-to-heat meals and a line of organic product offerings. It is engaged in the institutional sale of bulk commodities to international and regional trading firms, which includes wheat, barley, legume, maize, sugar, soybean meal, onion, potato, millet and others. Its Amira branded product line includes Amira Pure Basmati Rice, Amira Indian Basmati Rice, Smoked Basmati Rice, Amira Khichdi Rice, Amira Navratan Mix and others. The Company’s third-party branded rice products include Euricom Brown Basmati Rice, Bonne Chance Long Grain Rice and others.
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