Bunzl (OTCMKTS:BZLFY) versus Marzetti (NASDAQ:MZTI) Head to Head Review

Marzetti (NASDAQ:MZTI) and Bunzl (OTCMKTS:BZLFY) are both mid-cap consumer staples companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, analyst recommendations, institutional ownership, dividends, valuation and profitability.

Insider and Institutional Ownership

66.4% of Marzetti shares are held by institutional investors. Comparatively, 0.1% of Bunzl shares are held by institutional investors. 29.1% of Marzetti shares are held by insiders. Comparatively, 1.0% of Bunzl shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations for Marzetti and Bunzl, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Marzetti	0	3	1	0	2.25
Bunzl	0	5	1	2	2.63

Marzetti presently has a consensus price target of $188.00, indicating a potential upside of 13.97%. Given Marzetti’s higher probable upside, analysts clearly believe Marzetti is more favorable than Bunzl.

Profitability

This table compares Marzetti and Bunzl’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Marzetti	9.25%	18.55%	14.39%
Bunzl	N/A	N/A	N/A

Valuation & Earnings

This table compares Marzetti and Bunzl”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Marzetti	$1.94 billion	2.33	$167.35 million	$6.53	25.26
Bunzl	$15.05 billion	0.63	$640.23 million	N/A	N/A

Bunzl has higher revenue and earnings than Marzetti.

Dividends

Marzetti pays an annual dividend of $4.00 per share and has a dividend yield of 2.4%. Bunzl pays an annual dividend of $0.25 per share and has a dividend yield of 1.7%. Marzetti pays out 61.3% of its earnings in the form of a dividend. Marzetti has raised its dividend for 62 consecutive years. Marzetti is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

Marzetti has a beta of 0.39, meaning that its share price is 61% less volatile than the S&P 500. Comparatively, Bunzl has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500.

Summary

Marzetti beats Bunzl on 9 of the 15 factors compared between the two stocks.

About Marzetti

Lancaster Colony Corporation engages in the manufacturing and marketing of specialty food products for the retail and foodservice channels in the United States. It operates in two segments, Retail and Foodservice. The company offers frozen garlic bread under the New York BRAND Bakery; frozen Parkerhouse style yeast and dinner rolls under the Sister Schubert's brand; salad dressings under the Marzetti, Simply Dressed, Cardini's, and Girard's brands; vegetable and fruit dips under the Marzetti brand; croutons and salad toppings under the New York BRAND Bakery, Chatham Village, and Marzetti brands; and frozen pasta under the Marzetti Frozen Pasta brand. It also manufactures and sells other products to brand license agreements, including Olive Garden dressings, Buffalo Wild Wings sauces, and Chick-fil-A sauces. The company sells its products through sales personnel, food brokers, and distributors to retailers and restaurants. Lancaster Colony Corporation was incorporated in 1961 and is based in Westerville, Ohio.

About Bunzl

Bunzl plc operates as a distribution and services company in the North America, Continental Europe, the United Kingdom, Ireland, and internationally. The company offers food packaging, films, labels, cleaning and hygiene supplies, and personal protection equipment to grocery stores, supermarkets, and convenience stores. It also provides food packaging, disposable tableware, guest amenities, catering equipment, agricultural supplies, cleaning and hygiene products, and safety items to hotels, restaurants, contract caterers, food processors, commercial growers, and the leisure sector; and gloves, boots, hard hats, ear and eye protection, and other workwear, as well as cleaning and hygiene supplies, and asset protection products to industrial and construction, and ecommerce sectors. In addition, the company offers chemicals and hygiene paper to cleaning and facilities management companies, and industrial and public sector customers; gloves, masks, swabs, gowns, bandages, and other healthcare related equipment; and healthcare devices to hospitals, care homes, and other facilities serving the healthcare sector. Further, it provides packaging and other store supplies to retail chains, boutiques, department stores, home improvement chains, office supply companies, and related e-commerce sales channels. Bunzl plc was founded in 1854 and is headquartered in London, the United Kingdom.