Dean Foods (NYSE: DF) and Amira Nature Foods (NYSE:ANFI) are both small-cap consumer staples companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, earnings, dividends, analyst recommendations and valuation.

Institutional and Insider Ownership

12.5% of Amira Nature Foods shares are held by institutional investors. 1.2% of Dean Foods shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Dean Foods and Amira Nature Foods’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dean Foods 0.70% 16.63% 3.92%
Amira Nature Foods N/A N/A N/A

Analyst Ratings

This is a summary of current recommendations and price targets for Dean Foods and Amira Nature Foods, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dean Foods 3 7 3 0 2.00
Amira Nature Foods 0 1 1 0 2.50

Dean Foods currently has a consensus target price of $14.67, suggesting a potential upside of 34.06%. Amira Nature Foods has a consensus target price of $13.00, suggesting a potential upside of 134.66%. Given Amira Nature Foods’ stronger consensus rating and higher possible upside, analysts clearly believe Amira Nature Foods is more favorable than Dean Foods.

Volatility and Risk

Dean Foods has a beta of 0.51, meaning that its share price is 49% less volatile than the S&P 500. Comparatively, Amira Nature Foods has a beta of -0.16, meaning that its share price is 116% less volatile than the S&P 500.

Earnings and Valuation

This table compares Dean Foods and Amira Nature Foods’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Dean Foods $7.91 billion 0.13 $376.23 million $0.60 18.23
Amira Nature Foods $551.88 million 0.37 $70.71 million N/A N/A

Dean Foods has higher revenue and earnings than Amira Nature Foods.

Dividends

Dean Foods pays an annual dividend of $0.36 per share and has a dividend yield of 3.3%. Amira Nature Foods does not pay a dividend. Dean Foods pays out 60.0% of its earnings in the form of a dividend.

Summary

Dean Foods beats Amira Nature Foods on 9 of the 14 factors compared between the two stocks.

About Dean Foods

Dean Foods Company is a food and beverage company. The Company processes and distributes fluid milk, and other dairy and dairy case products in the United States. It is engaged in manufacturing, marketing, selling and distributing a range of branded and private label dairy and dairy case products. It offers branded and private label dairy case products, including fluid milk, ice cream, cultured dairy products, creamers, ice cream mix and other dairy products to retailers, distributors, foodservice outlets, educational institutions and governmental entities across the United States. It also offers juices, teas and bottled water. As of December 31, 2016, the Company had over 50 national, regional and local dairy brands, as well as private labels. As of December 31, 2016, the Company’s national, local and regional licensed brands included Alta Dena, Hygeia, PET, Arctic Splash, Jilbert, Pog, Barbers Dairy, Purity, Berkeley Farms, Land-O-Sun & design and ReadyLeaf, Broughton.

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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