Seaboard (NYSE:SEB) and Universal (NYSE:UVV) Financial Analysis

Seaboard (NYSE:SEBGet Rating) and Universal (NYSE:UVVGet Rating) are both consumer staples companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.

Profitability

This table compares Seaboard and Universal’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Seaboard 6.18% 13.47% 7.99%
Universal 4.83% 8.02% 4.43%

Analyst Ratings

This is a summary of current ratings and target prices for Seaboard and Universal, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Seaboard 0 0 0 0 N/A
Universal 0 0 0 0 N/A

Valuation & Earnings

This table compares Seaboard and Universal’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Seaboard $9.23 billion 0.52 $570.00 million $490.36 8.47
Universal $1.98 billion 0.73 $87.41 million $4.02 14.56

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

Dividends

Seaboard pays an annual dividend of $9.00 per share and has a dividend yield of 0.2%. Universal pays an annual dividend of $3.12 per share and has a dividend yield of 5.3%. Seaboard pays out 1.8% of its earnings in the form of a dividend. Universal pays out 77.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Universal has increased its dividend for 51 consecutive years. Universal is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

17.9% of Seaboard shares are held by institutional investors. Comparatively, 80.7% of Universal shares are held by institutional investors. 78.2% of Seaboard shares are held by company insiders. Comparatively, 2.6% of Universal shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Seaboard has a beta of 0.35, indicating that its stock price is 65% less volatile than the S&P 500. Comparatively, Universal has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500.

Summary

Seaboard beats Universal on 8 of the 14 factors compared between the two stocks.

Seaboard Company Profile (Get Rating)

Seaboard Corporation operates as an agribusiness and transportation company worldwide. It operates through six segments: Pork, Commodity Trading and Milling (CT&M), Marine, Sugar and Alcohol, Power, and Turkey. The Pork segment produces and sells fresh and frozen pork products to further processors, foodservice operators, grocery stores, and distributors; hogs; and biodiesel. The CT&M segment sources, transports, and markets wheat, corn, soybeans, soybean meal, and other commodities; and produces wheat flour, maize meal, manufactured feed, and oilseed crush commodities. The Marine segment provides cargo shipping services in the United States, as well as in 26 countries in the Caribbean, and Central and South America; dry, refrigerated, and specialized containers, as well as other related equipment; and operates a terminal and an off-port warehouse for cargo consolidation and temporary storage. As of December 31, 2021, this segment operated through a fleet of 20 chartered and 4 owned vessels. The Sugar and Alcohol segment produces and sells sugar and alcohol; and generates and sells energy through its 51-megawatt cogeneration power plant that is fueled by sugarcane by-products, natural gas, and other biomass. The Power segment operates as an independent power producer that generates electricity for the power grid in the Dominican Republic. The Turkey segment produces and processes organic turkey products to retail stores, foodservice outlets, and industrial entities, as well as exports products to Mexico and internationally. The company also processes and sells jalapeño peppers. Seaboard Corporation was founded in 1918 and is headquartered in Merriam, Kansas.

Universal Company Profile (Get Rating)

Universal Corporation processes and supplies leaf tobacco and plant-based ingredients worldwide. The company operates through two segments, Tobacco Operations and Ingredients Operations. It is involved in procuring, financing, processing, packing, storing, and shipping leaf tobacco for sale to manufacturers of consumer tobacco products. The company contracts, purchases, processes, and sells flue-cured, burley, and oriental tobaccos that are primarily used in the manufacture of cigarettes; and dark air-cured tobaccos principally used in the manufacture of cigars, natural wrapped cigars and cigarillos, smokeless, and pipe tobacco products. It also provides value-added services, including blending, chemical, and physical testing of tobacco; service cutting for various manufacturers; manufacturing reconstituted leaf tobacco; just-in-time inventory management services; electronic nicotine delivery systems; and smoke testing services for customers. In addition, the company offers testing services for crop protection agents and tobacco constituents in seed, leaf, and finished products, including e-cigarette liquids and vapors; and analytical services that include chemical compound testing in finished tobacco products and mainstream smoke. Further, it provides a various value-added manufacturing processes to produce specialty vegetable and fruit-based ingredients for the food and beverage end markets, as well as provides water pipe style leaf tobacco; and recycles waste materials from tobacco production. The company was founded in 1886 and is headquartered in Richmond, Virginia.

Receive News & Ratings for Seaboard Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Seaboard and related companies with MarketBeat.com's FREE daily email newsletter.