Critical Comparison: Inventure Foods (SNAK) versus Kraft Heinz Foods (HNZ)

Inventure Foods (NASDAQ: SNAK) and Kraft Heinz Foods (NYSE:HNZ) are both non-cyclical consumer goods & services companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, analyst recommendations and earnings.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Inventure Foods and Kraft Heinz Foods, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Inventure Foods 0 1 0 0 2.00
Kraft Heinz Foods 0 2 1 0 2.33

Kraft Heinz Foods has a consensus price target of $17.65, suggesting a potential downside of 5.87%. Given Kraft Heinz Foods’ stronger consensus rating and higher possible upside, analysts plainly believe Kraft Heinz Foods is more favorable than Inventure Foods.

Institutional & Insider Ownership

69.3% of Inventure Foods shares are held by institutional investors. 6.4% of Inventure Foods shares are held 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.

Earnings and Valuation

This table compares Inventure Foods and Kraft Heinz Foods’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Inventure Foods $269.01 million 0.29 -$30.24 million ($1.93) -2.07
Kraft Heinz Foods N/A N/A N/A $3.26 5.75

Kraft Heinz Foods has lower revenue, but higher earnings than Inventure Foods. Inventure Foods is trading at a lower price-to-earnings ratio than Kraft Heinz Foods, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Inventure Foods and Kraft Heinz Foods’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Inventure Foods -19.95% N/A -20.97%
Kraft Heinz Foods N/A N/A N/A

Summary

Kraft Heinz Foods beats Inventure Foods on 7 of the 10 factors compared between the two stocks.

About Inventure Foods

Inventure Foods, Inc. is a marketer and manufacturer of healthy/natural and indulgent specialty snack food brands. The Company operates in the snack products segment. The snack products segment produces potato chips, kettle chips, potato crisps, potato skins, pellet snacks, sheeted dough products and extruded products for sale primarily to snack food distributors and retailers. The products sold under its snack products segment includes products considered part of the indulgent specialty snack food category, as well as products considered part of the healthy/natural food category. Its Snack Products segment’s brands include Boulder Canyon, Nathan’s Famous, T.G.I. Friday’s, Poore Brothers, and Bob’s Texas Style.

About Kraft Heinz Foods

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.

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