Ingredion (NYSE: INGR) and Kraft Foods Group (NASDAQ:KRFTV) are both consumer staples companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, dividends, analyst recommendations, profitability, risk, institutional ownership and valuation.

Insider & Institutional Ownership

84.3% of Ingredion shares are owned by institutional investors. 1.9% of Ingredion 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.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Ingredion and Kraft Foods Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ingredion 0 2 2 0 2.50
Kraft Foods Group 0 0 0 0 N/A

Ingredion currently has a consensus target price of $141.67, indicating a potential upside of 13.48%. Given Ingredion’s higher probable upside, equities research analysts plainly believe Ingredion is more favorable than Kraft Foods Group.

Profitability

This table compares Ingredion and Kraft Foods Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ingredion 8.35% 20.84% 9.53%
Kraft Foods Group 9.86% 38.66% 7.47%

Valuation & Earnings

This table compares Ingredion and Kraft Foods Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Ingredion $5.80 billion 1.54 $1.05 billion $6.65 18.77
Kraft Foods Group N/A N/A N/A N/A N/A

Ingredion has higher revenue and earnings than Kraft Foods Group.

Dividends

Ingredion pays an annual dividend of $2.00 per share and has a dividend yield of 1.6%. Kraft Foods Group does not pay a dividend. Ingredion pays out 30.1% of its earnings in the form of a dividend. Kraft Foods Group has raised its dividend for 4 consecutive years.

Summary

Ingredion beats Kraft Foods Group on 7 of the 11 factors compared between the two stocks.

Ingredion Company Profile

Ingredion Incorporated is an ingredients solutions provider. The Company manufactures and sells sweetener, starches, nutrition ingredients and biomaterial solutions derived from the wet milling and processing of corn and other starch-based materials to a range of industries, both domestically and internationally. It operates through four segments: North America, South America, Asia Pacific, and Europe, Middle East and Africa (EMEA). It turns corn, tapioca, potatoes, and other vegetables and fruits into ingredients and biomaterials for the food, beverage, paper and corrugating, brewing and other industries. Its product line includes animal feed products and edible corn oil. Its sweetener products include glucose syrups, high maltose syrup, high fructose corn syrup (HFCS), caramel color, dextrose, polyols, maltodextrins and glucose and syrup solids. Its starch-based products include both food-grade and industrial starches, and biomaterials. It also offers specialty ingredients.

Kraft Foods Group Company Profile

Kraft Foods Group, Inc. is a consumer packaged food and beverage company. The Company manufactures and markets food and beverage products, including cheese, meats, refreshment beverages, coffee, packaged dinners, refrigerated meals, snack nuts, dressings, and other grocery products, primarily in the United States and Canada. Its product categories span breakfast, lunch and dinner meal occasions. The Company operates in six segments: Cheese, Refrigerated Meals, Beverages, Meals & Desserts, Enhancers & Snack Nuts and Canada. Its brand portfolio consists of various food brands in North America, including Kraft cheeses, dinners and dressings; Oscar Mayer meats; Philadelphia cream cheese, and over 25 other brands. The Company operates around 36 manufacturing and processing facilities, 34 in the United States and two in Canada. It sells products to supermarket chains, wholesalers, supercenters, club stores, distributors and convenience stores, among others.

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