Kraft Foods Group (NASDAQ: KRFT) and ConAgra Foods (NYSE:CAG) are both non-cyclical consumer goods & services companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, profitability, analyst recommendations, institutional ownership, earnings, valuation and dividends.

Profitability

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

Net Margins Return on Equity Return on Assets
Kraft Foods Group 9.86% 38.66% 7.47%
ConAgra Foods 7.43% 20.29% 7.56%

Earnings and Valuation

This table compares Kraft Foods Group and ConAgra Foods’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Kraft Foods Group N/A N/A N/A N/A N/A
ConAgra Foods $7.83 billion 1.84 $1.57 billion $1.47 23.47

ConAgra Foods has higher revenue and earnings than Kraft Foods Group.

Dividends

ConAgra Foods pays an annual dividend of $0.85 per share and has a dividend yield of 2.5%. Kraft Foods Group does not pay a dividend. ConAgra Foods pays out 57.8% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of current ratings and recommmendations for Kraft Foods Group and ConAgra Foods, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kraft Foods Group 0 0 0 0 N/A
ConAgra Foods 1 2 7 0 2.60

ConAgra Foods has a consensus price target of $43.90, suggesting a potential upside of 27.23%. Given ConAgra Foods’ higher probable upside, analysts clearly believe ConAgra Foods is more favorable than Kraft Foods Group.

Institutional and Insider Ownership

78.4% of ConAgra Foods shares are owned by institutional investors. 0.8% of ConAgra Foods shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

ConAgra Foods beats Kraft Foods Group on 7 of the 10 factors compared between the two stocks.

About Kraft Foods Group

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.

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.

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