Reviewing Mondelez International (MDLZ) & Campbell Soup (CPB)
Mondelez International (NASDAQ: MDLZ) and Campbell Soup (NYSE:CPB) are both large-cap consumer staples companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, risk, valuation, profitability and earnings.
Risk and Volatility
Mondelez International has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500. Comparatively, Campbell Soup has a beta of 0.36, suggesting that its share price is 64% less volatile than the S&P 500.
Earnings and Valuation
This table compares Mondelez International and Campbell Soup’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Mondelez International||$25.57 billion||2.47||$4.37 billion||$1.14||36.68|
|Campbell Soup||$7.89 billion||1.75||$2.00 billion||$2.89||15.91|
Mondelez International has higher revenue and earnings than Campbell Soup. Campbell Soup is trading at a lower price-to-earnings ratio than Mondelez International, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
75.8% of Mondelez International shares are owned by institutional investors. Comparatively, 44.7% of Campbell Soup shares are owned by institutional investors. 3.6% of Mondelez International shares are owned by company insiders. Comparatively, 37.3% of Campbell Soup shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This table compares Mondelez International and Campbell Soup’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Mondelez International pays an annual dividend of $0.88 per share and has a dividend yield of 2.1%. Campbell Soup pays an annual dividend of $1.40 per share and has a dividend yield of 3.0%. Mondelez International pays out 77.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Campbell Soup pays out 48.4% of its earnings in the form of a dividend. Campbell Soup is clearly the better dividend stock, given its higher yield and lower payout ratio.
This is a breakdown of recent recommendations and price targets for Mondelez International and Campbell Soup, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Mondelez International presently has a consensus price target of $50.91, suggesting a potential upside of 21.76%. Campbell Soup has a consensus price target of $51.50, suggesting a potential upside of 11.98%. Given Mondelez International’s stronger consensus rating and higher possible upside, research analysts plainly believe Mondelez International is more favorable than Campbell Soup.
Mondelez International beats Campbell Soup on 10 of the 17 factors compared between the two stocks.
About Mondelez International
Mondelez International, Inc. is a snack company. The Company manufactures and markets snack food and beverage products for consumers. It operates through four segments: Latin America, Asia, Middle East, and Africa (AMEA), Europe and North America. As of December 31, 2016, its brands spanned five product categories: Biscuits (including cookies, crackers and salted snacks); Chocolate; Gum and candy; Beverages (including coffee and powdered beverages), and Cheese and grocery. Itsportfolio includes various snack brands, including Nabisco, Oreo, LU and belVita biscuits; Cadbury, Milka, Cadbury Dairy Milk and Toblerone chocolate; Trident gum; Halls candy, and Tang powdered beverages. The Company sells its products to supermarket chains, wholesalers, supercenters, club stores, mass merchandisers, distributors, convenience stores, gasoline stations, drug stores, value stores and retail food outlets. As of December 31, 2016, it sold its products to consumers in approximately 165 countries.
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.
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