Sysco (NYSE:SYY) & Armanino Foods of Distinction (OTCMKTS:AMNF) Critical Review

Armanino Foods of Distinction (OTCMKTS:AMNF) and Sysco (NYSE:SYY) are both consumer staples companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.

Earnings and Valuation

This table compares Armanino Foods of Distinction and Sysco”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Armanino Foods of Distinction	$76.10 million	4.12	$18.80 million	$0.62	16.52
Sysco	$81.37 billion	0.50	$1.83 billion	$3.61	23.46

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

Risk & Volatility

Armanino Foods of Distinction has a beta of 0.08, indicating that its share price is 92% less volatile than the S&P 500. Comparatively, Sysco has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500.

Dividends

Armanino Foods of Distinction pays an annual dividend of $0.20 per share and has a dividend yield of 2.0%. Sysco pays an annual dividend of $2.16 per share and has a dividend yield of 2.5%. Armanino Foods of Distinction pays out 32.3% of its earnings in the form of a dividend. Sysco pays out 59.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Sysco has raised its dividend for 57 consecutive years. Sysco is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

0.1% of Armanino Foods of Distinction shares are owned by institutional investors. Comparatively, 83.4% of Sysco shares are owned by institutional investors. 30.2% of Armanino Foods of Distinction shares are owned by insiders. Comparatively, 0.6% of Sysco shares are owned 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 Ratings

This is a breakdown of recent ratings and price targets for Armanino Foods of Distinction and Sysco, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Armanino Foods of Distinction	0	1	1	1	3.00
Sysco	0	7	9	0	2.56

Armanino Foods of Distinction currently has a consensus price target of $15.00, suggesting a potential upside of 46.48%. Sysco has a consensus price target of $88.15, suggesting a potential upside of 4.07%. Given Armanino Foods of Distinction’s stronger consensus rating and higher possible upside, analysts plainly believe Armanino Foods of Distinction is more favorable than Sysco.

Profitability

This table compares Armanino Foods of Distinction and Sysco’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Armanino Foods of Distinction	25.06%	47.01%	35.12%
Sysco	2.08%	103.57%	8.06%

Summary

Sysco beats Armanino Foods of Distinction on 10 of the 18 factors compared between the two stocks.

About Armanino Foods of Distinction

Armanino Foods of Distinction, Inc. produces and markets frozen food products in the United States. The company offers gourmet beef, Italian style beef and pork, and smoked turkey meatballs; grated parmesan and 3 cheese blend cheese; and various pesto, such as basil, artichoke, cilantro, dried tomato and garlic, roasted garlic, roasted red bell pepper, and southwest chipotle. It also provides frozen pasta, which includes beef cannelloni, cheese manicotti, cheese stuffed shells, cheese tortellini; pasta sheets, potato gnocchi, and tricolor cheese tortellini, as well as beef, butternut squash, four cheese, cheese and spinach, and wild mushroom ravioli; and various sauces, comprising creamy garlic, alfresco, Bolognese, chimichurri, harissa, and romesco. The company offers its products under the Armanino brand. It markets its products through a network of food brokers and sells to retail and foodservice distributors, club-type stores, and industrial accounts. The company was founded in 1978 and is based in Hayward, California.

About Sysco

Sysco Corporation, through its subsidiaries, engages in the marketing and distribution of various food and related products to the foodservice or food-away-from-home industry in the United States, Canada, the United Kingdom, France, and internationally. It operates through U.S. Foodservice Operations, International Foodservice Operations, SYGMA, and Other segments. The company distributes frozen food, such as meat, seafood, fully prepared entrées, fruits, vegetables, and desserts; canned and dry food products; fresh meat and seafood products; dairy products; beverages; imported specialties; and fresh produce products. It also supplies various non-food items, including paper products comprising disposable napkins, plates, and cups; tableware consisting of glassware and silverware; cookware, such as pots, pans, and utensils; restaurant and kitchen equipment and supplies; and cleaning supplies. The company serves restaurants, hospitals and nursing facilities, schools and colleges, hotels and motels, industrial caterers, and other foodservice venues. Sysco Corporation was incorporated in 1969 and is headquartered in Houston, Texas.