Dean Foods (NYSE: DF) and Inventure Foods (NASDAQ:SNAK) are both small-cap consumer staples companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, profitability, analyst recommendations, earnings and risk.
Dean Foods pays an annual dividend of $0.36 per share and has a dividend yield of 3.8%. Inventure Foods does not pay a dividend. Dean Foods pays out 78.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This table compares Dean Foods and Inventure Foods’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Dean Foods||$7.71 billion||0.11||$119.92 million||$0.46||20.76|
|Inventure Foods||$269.01 million||0.29||-$30.24 million||($1.93)||-2.07|
Dean Foods has higher revenue and earnings than Inventure Foods. Inventure Foods is trading at a lower price-to-earnings ratio than Dean Foods, indicating that it is currently the more affordable of the two stocks.
This is a summary of current recommendations and price targets for Dean Foods and Inventure Foods, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Dean Foods currently has a consensus price target of $13.06, indicating a potential upside of 36.71%. Given Dean Foods’ stronger consensus rating and higher probable upside, analysts plainly believe Dean Foods is more favorable than Inventure Foods.
Institutional & Insider Ownership
94.5% of Dean Foods shares are owned by institutional investors. Comparatively, 69.3% of Inventure Foods shares are owned by institutional investors. 1.2% of Dean Foods shares are owned by company insiders. Comparatively, 6.4% of Inventure Foods shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This table compares Dean Foods and Inventure Foods’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
Dean Foods has a beta of 0.39, meaning that its share price is 61% less volatile than the S&P 500. Comparatively, Inventure Foods has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500.
Dean Foods beats Inventure Foods on 12 of the 16 factors compared between the two stocks.
Dean Foods Company Profile
Dean Foods Company is a food and beverage company. The Company processes and distributes fluid milk, and other dairy and dairy case products in the United States. It is engaged in manufacturing, marketing, selling and distributing a range of branded and private label dairy and dairy case products. It offers branded and private label dairy case products, including fluid milk, ice cream, cultured dairy products, creamers, ice cream mix and other dairy products to retailers, distributors, foodservice outlets, educational institutions and governmental entities across the United States. It also offers juices, teas and bottled water. As of December 31, 2016, the Company had over 50 national, regional and local dairy brands, as well as private labels. As of December 31, 2016, the Company’s national, local and regional licensed brands included Alta Dena, Hygeia, PET, Arctic Splash, Jilbert, Pog, Barbers Dairy, Purity, Berkeley Farms, Land-O-Sun & design and ReadyLeaf, Broughton.
Inventure Foods Company Profile
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.
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