AdvancePierre Foods Holdings (NASDAQ: APFH) and Ingredion (NYSE:INGR) are both non-cyclical consumer goods & services companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, risk, analyst recommendations, earnings and institutional ownership.

Institutional and Insider Ownership

84.3% of Ingredion shares are held by institutional investors. 1.9% of Ingredion shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
AdvancePierre Foods Holdings 7.00% N/A 8.96%
Ingredion 8.35% 20.84% 9.53%

Dividends

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

Analyst Recommendations

This is a summary of recent recommendations and price targets for AdvancePierre Foods Holdings and Ingredion, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AdvancePierre Foods Holdings 0 3 0 0 2.00
Ingredion 0 2 2 0 2.50

AdvancePierre Foods Holdings currently has a consensus target price of $37.67, indicating a potential downside of 6.42%. Ingredion has a consensus target price of $141.67, indicating a potential upside of 13.48%. Given Ingredion’s stronger consensus rating and higher probable upside, analysts plainly believe Ingredion is more favorable than AdvancePierre Foods Holdings.

Valuation and Earnings

This table compares AdvancePierre Foods Holdings and Ingredion’s top-line revenue, earnings per share (EPS) and valuation.

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

Ingredion has higher revenue and earnings than AdvancePierre Foods Holdings.

Summary

Ingredion beats AdvancePierre Foods Holdings on 10 of the 12 factors compared between the two stocks.

AdvancePierre Foods Holdings Company Profile

AdvancePierre Foods Holdings, Inc. is a producer and distributor of ready-to-eat sandwiches, sandwich components and other entrees and snacks. The Company operates through four segments. The Foodservice segment’s portfolio of products includes breakfast sandwiches, peanut butter and jelly sandwiches, Philly steaks, fully cooked hamburger-patties, country-fried steak, stuffed entrees and chicken tenders. The Retail segment sells both branded and private label ready-to-eat sandwiches, such as grilled chicken sandwiches and stuffed pockets; sandwich components, such as chicken patties, and other entrees and snacks, such as stuffed chicken breasts. The Convenience segment sells customized ready-to-eat sandwiches, such as breakfast sandwiches and burgers; sandwich components, such as chicken patties, and other entrees and snacks, such as cinnamon dough bites. The Industrial segment supplies other food producers, such as packaged food companies under short-term co-manufacturing agreements.

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.

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