Head to Head Contrast: Campbell Soup (CPB) and General Mills (GIS)
Campbell Soup (NYSE: CPB) and General Mills (NYSE:GIS) are both large-cap consumer staples companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, earnings, risk, profitability, institutional ownership, dividends and valuation.
Volatility and Risk
Campbell Soup has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500. Comparatively, General Mills has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500.
Earnings and Valuation
This table compares Campbell Soup and General Mills’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Campbell Soup||$7.91 billion||1.83||$1.61 billion||$2.89||16.50|
|General Mills||$15.62 billion||2.04||$3.41 billion||$2.77||19.96|
General Mills has higher revenue and earnings than Campbell Soup. Campbell Soup is trading at a lower price-to-earnings ratio than General Mills, indicating that it is currently the more affordable of the two stocks.
This table compares Campbell Soup and General Mills’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
44.3% of Campbell Soup shares are held by institutional investors. Comparatively, 69.5% of General Mills shares are held by institutional investors. 37.3% of Campbell Soup shares are held by insiders. Comparatively, 1.4% of General Mills shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This is a summary of current recommendations and price targets for Campbell Soup and General Mills, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Campbell Soup currently has a consensus target price of $51.85, indicating a potential upside of 8.73%. General Mills has a consensus target price of $58.62, indicating a potential upside of 6.01%. Given Campbell Soup’s higher possible upside, equities research analysts plainly believe Campbell Soup is more favorable than General Mills.
Campbell Soup pays an annual dividend of $1.40 per share and has a dividend yield of 2.9%. General Mills pays an annual dividend of $1.96 per share and has a dividend yield of 3.5%. Campbell Soup pays out 48.4% of its earnings in the form of a dividend. General Mills pays out 70.8% 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. Campbell Soup has raised its dividend for 13 consecutive years.
General Mills beats Campbell Soup on 9 of the 17 factors compared between the two stocks.
About Campbell Soup
Campbell Soup Company is a food company, which manufactures and markets food products. The Company’s segments include Americas Simple Meals and Beverages; Global Biscuits and Snacks, and Campbell Fresh. The Americas Simple Meals and Beverages segment includes the retail and food service channel businesses. The segment includes the products, such as Campbell’s condensed and ready-to-serve soups; Swanson broth and stocks; Prego pasta sauces; Pace Mexican sauces; Campbell’s gravies, pasta, beans and dinner sauces; Plum food and snacks; V8 juices and beverages, and Campbell’s tomato juice. The Global Biscuits and Snacks segment includes Pepperidge Farm cookies, crackers, bakery and frozen products; Arnott’s biscuits, and Kelsen cookies. The Campbell Fresh segment includes Bolthouse Farms fresh carrots, carrot ingredients, refrigerated beverages and refrigerated salad dressings; Garden Fresh Gourmet salsa, hummus, dips and tortilla chips, and the United States refrigerated soup business.
About General Mills
General Mills, Inc. is a manufacturer and marketer of branded consumer foods sold through retail stores. The Company is a supplier of branded and unbranded food products to the North American foodservice and commercial baking industries. The Company has three segments: U.S. Retail, International, and Convenience Stores and Foodservice. Its products are marketed under various brands, which include Annie’s and Betty Crocker. The Company’s U.S. Retail segment reflects business with a range of grocery stores, mass merchandisers, membership stores, natural food chains, drug, dollar and discount chains, and e-commerce grocery providers operating throughout the United States. The International segment consists of retail and foodservice businesses outside of the United States. The Convenience Stores and Foodservice segment’s product categories include ready-to-eat cereals, snacks, refrigerated yogurt, frozen meals, unbaked and fully baked frozen dough products, and baking mixes.
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