B&G Foods (NYSE: BGS) and Ralcorp (NYSE:RAH) are both non-cyclical consumer goods & services companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.

Valuation and Earnings

This table compares B&G Foods and Ralcorp’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
B&G Foods $1.39 billion 1.68 $109.42 million $1.52 23.16
Ralcorp N/A N/A N/A $1.03 N/A

B&G Foods has higher revenue and earnings than Ralcorp. Ralcorp is trading at a lower price-to-earnings ratio than B&G Foods, indicating that it is currently the more affordable of the two stocks.

Dividends

B&G Foods pays an annual dividend of $1.86 per share and has a dividend yield of 5.3%. Ralcorp does not pay a dividend. B&G Foods pays out 122.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ralcorp has increased its dividend for 7 consecutive years.

Analyst Ratings

This is a breakdown of current ratings and price targets for B&G Foods and Ralcorp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
B&G Foods 0 2 6 0 2.75
Ralcorp 0 0 0 0 N/A

B&G Foods presently has a consensus target price of $40.75, indicating a potential upside of 15.77%.

Insider and Institutional Ownership

93.9% of B&G Foods shares are held by institutional investors. 2.1% of B&G Foods shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares B&G Foods and Ralcorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
B&G Foods 6.29% 15.50% 3.92%
Ralcorp N/A N/A N/A

Summary

B&G Foods beats Ralcorp on 9 of the 11 factors compared between the two stocks.

B&G Foods Company Profile

B&G Foods, Inc. (B&G Foods) is a holding company. The Company manufactures, sells and distributes a portfolio of shelf-stable and frozen foods across the United States, Canada and Puerto Rico. Its products include frozen and canned vegetables, hot cereals, fruit spreads, canned meats and beans, bagel chips, spices, seasonings, hot sauces, wine vinegar, maple syrup, molasses, salad dressings, pizza crusts, Mexican-style sauces, dry soups, taco shells and kits, salsas, pickles, peppers, tomato-based products, puffed corn and rice snacks, nut clusters and other specialty products. Its products are marketed under various brands, including Ac’cent, B&G, B&M, Baker’s Joy, Bear Creek Country Kitchens, Brer Rabbit, Canoleo, Cary’s, Cream of Rice, Cream of Wheat, Devonsheer, Don Pepino, Durkee, New York Style, Old London, Original Tings, Ortega, Spice Islands, Spring Tree, Static Guard, Sugar Twin, Tone’s, Trappey’s, TrueNorth, Underwood, Vermont Maid, Victoria, Weber and Wright’s.

Ralcorp Company Profile

Ralcorp Holdings, Inc. (Ralcorp) is engaged in manufacturing, distributing and marketing private-brand food products and other regional and value-brand food products in the grocery, mass merchandise, drugstore and foodservice channels. The Company’s products include nutritional bars; snack mixes, corn-based chips and extruded corn snack products; crackers and cookies; snack nuts; chocolate candy; salad dressings; mayonnaise; peanut butter; jams and jellies; syrups; sauces; frozen griddle products, including pancakes, waffles and French toast; frozen biscuits and other frozen pre-baked products, such as breads and rolls; frozen and refrigerated doughs, and dry pasta. In May 2012, the Company acquired Petri Baking Products, Inc. In June 2012, the Company acquired Gelit S.r.l., a producer of frozen ready meals in Italy. In January 2013, ConAgra Foods Inc acquired the Company.

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