Contrasting WhiteWave Foods (WWAV) and Conagra Brands (CAG)

WhiteWave Foods (NYSE: WWAV) and Conagra Brands (NYSE:CAG) are both non-cyclical consumer goods & services companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Profitability

This table compares WhiteWave Foods and Conagra Brands’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
WhiteWave Foods 6.21% 17.51% 5.92%
Conagra Brands 9.04% 19.58% 7.62%

Institutional and Insider Ownership

80.6% of WhiteWave Foods shares are owned by institutional investors. Comparatively, 80.2% of Conagra Brands shares are owned by institutional investors. 6.2% of WhiteWave Foods shares are owned by insiders. Comparatively, 0.8% of Conagra Brands shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares WhiteWave Foods and Conagra Brands’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
WhiteWave Foods N/A N/A N/A $1.19 N/A
Conagra Brands $7.83 billion 1.97 $639.30 million $1.67 23.05

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

Analyst Recommendations

This is a summary of current ratings and target prices for WhiteWave Foods and Conagra Brands, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WhiteWave Foods 0 1 0 0 2.00
Conagra Brands 0 2 7 0 2.78

WhiteWave Foods presently has a consensus target price of $56.00, suggesting a potential upside of Infinity. Conagra Brands has a consensus target price of $41.56, suggesting a potential upside of 7.94%. Given WhiteWave Foods’ higher probable upside, analysts clearly believe WhiteWave Foods is more favorable than Conagra Brands.

Dividends

Conagra Brands pays an annual dividend of $0.85 per share and has a dividend yield of 2.2%. WhiteWave Foods does not pay a dividend. Conagra Brands pays out 50.9% of its earnings in the form of a dividend.

Summary

Conagra Brands beats WhiteWave Foods on 8 of the 13 factors compared between the two stocks.

WhiteWave Foods Company Profile

The WhiteWave Foods Company is a consumer packaged food and beverage company. The Company manufactures, markets, distributes and sells branded plant-based foods and beverages, coffee creamers and beverages, dairy products and organic produce. It operates through two segments: Americas Foods & Beverages and Europe Foods & Beverages. The Americas Foods & Beverages segment includes plant-based foods and beverages, including its Silk and So Delicious branded beverages, such as soymilk, almondmilk, coconutmilk and cashewmilk, ice cream and frozen products, and plant-based yogurts, and Vega plant-based products. The Europe Foods & Beverages segment includes plant-based foods and beverages, such as its Alpro and Provamel brand beverages using soy, almond, coconut, hazelnut, rice and oat and other plant-based ingredients, and plant-based alternatives to yogurt, culinary creams, desserts and margarine. It sells products primarily in North America, Europe and through a joint venture in China.

Conagra Brands Company Profile

Conagra Brands, Inc., formerly ConAgra Foods, Inc., operates as a packaged food company. The Company operates through two segments: Consumer Foods and Commercial Foods. The Company sells branded and customized food products, as well as commercially branded foods. It also supplies vegetable, spice and grain products to a range of restaurants, foodservice operators and commercial customers. Conagra Foodservice offers products to restaurants, retailers, commercial customers and other foodservice suppliers. The Company also operates in the countries outside the United States, such as Canada and Mexico. The Company’s brands include Marie Callender’s, Healthy Choice, Slim Jim, Hebrew National, Orville Redenbacher’s, Peter Pan, Reddi-wip, PAM, Snack Pack, Banquet, Chef Boyardee, Egg Beaters, Rosarita, Fleischmann’s and Hunt’s. The Company sells its products in grocery, convenience, mass merchandise and club stores.

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