Financial Review: Kraft Heinz Foods (HNZ) and Campbell Soup (CPB)
Kraft Heinz Foods (NYSE: HNZ) and Campbell Soup (NYSE:CPB) are both large-cap non-cyclical consumer goods & services companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, profitability, analyst recommendations, institutional ownership and valuation.
Insider & Institutional Ownership
46.0% of Campbell Soup shares are held by institutional investors. 37.2% of Campbell Soup shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This is a breakdown of current recommendations and price targets for Kraft Heinz Foods and Campbell Soup, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Kraft Heinz Foods||0||2||1||0||2.33|
Kraft Heinz Foods currently has a consensus price target of $17.65, suggesting a potential downside of 5.56%. Campbell Soup has a consensus price target of $50.64, suggesting a potential upside of 6.85%. Given Campbell Soup’s higher possible upside, analysts plainly believe Campbell Soup is more favorable than Kraft Heinz Foods.
Valuation and Earnings
This table compares Kraft Heinz Foods and Campbell Soup’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Kraft Heinz Foods||N/A||N/A||N/A||$3.26||5.73|
|Campbell Soup||$7.89 billion||1.81||$887.00 million||$2.86||16.57|
Campbell Soup has higher revenue and earnings than Kraft Heinz Foods. Kraft Heinz Foods is trading at a lower price-to-earnings ratio than Campbell Soup, indicating that it is currently the more affordable of the two stocks.
This table compares Kraft Heinz Foods and Campbell Soup’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Kraft Heinz Foods||N/A||N/A||N/A|
Campbell Soup pays an annual dividend of $1.40 per share and has a dividend yield of 3.0%. Kraft Heinz Foods does not pay a dividend. Campbell Soup pays out 49.0% of its earnings in the form of a dividend.
Campbell Soup beats Kraft Heinz Foods on 9 of the 13 factors compared between the two stocks.
Kraft Heinz Foods Company Profile
H. J. Heinz Company, together with its subsidiaries, is engaged in manufacturing and marketing a range of food products throughout the world. The Company’s principal products include ketchup, condiments and sauces, frozen food, soups, beans and pasta meals, infant nutrition and other food products. The Company’s products are manufactured and packaged to provide wholesome foods for consumers, as well as foodservice and institutional customers. The Company manufactures and contracts for the manufacture of its products from a variety of raw food materials. The Company operates in five segments: North American Consumer Products, Europe, Asia/Pacific, U.S. Foodservice and Rest of World. The Company owns or leases office space, warehouses, distribution centers and research and other facilities throughout the world.
Campbell Soup Company Profile
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.
Receive News & Ratings for Kraft Heinz Foods Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Kraft Heinz Foods and related companies with MarketBeat.com's FREE daily email newsletter.