Analyzing Advantage Solutions (NASDAQ:ADV) and Kellanova (NYSE:K)

Advantage Solutions (NASDAQ:ADV) and Kellanova (NYSE:K) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, valuation, profitability, risk, analyst recommendations and institutional ownership.

Profitability

This table compares Advantage Solutions and Kellanova’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Advantage Solutions	-10.71%	-33.99%	-8.76%
Kellanova	10.93%	34.80%	8.45%

Institutional and Insider Ownership

49.8% of Advantage Solutions shares are held by institutional investors. Comparatively, 83.9% of Kellanova shares are held by institutional investors. 6.2% of Advantage Solutions shares are held by insiders. Comparatively, 1.8% of Kellanova shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Advantage Solutions and Kellanova”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Advantage Solutions	$3.57 billion	0.14	-$326.96 million	($1.16)	-1.33
Kellanova	$12.75 billion	2.16	$1.34 billion	$3.96	20.06

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Advantage Solutions and Kellanova, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Advantage Solutions	0	0	1	0	3.00
Kellanova	0	13	1	0	2.07

Advantage Solutions currently has a consensus price target of $2.25, suggesting a potential upside of 46.10%. Kellanova has a consensus price target of $79.75, suggesting a potential upside of 0.40%. Given Advantage Solutions’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Advantage Solutions is more favorable than Kellanova.

Volatility & Risk

Advantage Solutions has a beta of 2.04, meaning that its share price is 104% more volatile than the S&P 500. Comparatively, Kellanova has a beta of 0.28, meaning that its share price is 72% less volatile than the S&P 500.

Summary

Kellanova beats Advantage Solutions on 9 of the 13 factors compared between the two stocks.

About Advantage Solutions

Advantage Solutions Inc. provides business solutions to consumer goods manufacturers and retailers in North America and internationally. It operates in two segments, Sales and Marketing. The Sales segment offers brand-centric services, such as headquarter relationship management; analytics, insights, and intelligence; and brand-centric merchandising services. This segment also provides retailer-centric services comprising retailer-centric merchandising and in-store media services. The Marketing segment offers brand-centric services, including shopper and consumer marketing, and brand experiential services; retailer-centric services, such as retail experiential and private label services; and digital marketing, and digital media and advertising services. The company was formerly known as Karman Holding Corp. and changed its name to Advantage Solutions Inc. in March 2016. The company was founded in 1987 and is headquartered in Irvine, California.

About Kellanova

Kellanova, together with its subsidiaries, manufactures and markets snacks and convenience foods in North America, Europe, Latin America, the Asia Pacific, the Middle East, Australia, and Africa. Its principal products include crackers, crisps, savory snacks, toaster pastries, cereal bars, granola bars and bites, ready-to-eat cereals, frozen waffles, veggie foods, and noodles. The company offers its products under the Kellogg’s, Cheez-It, Pringles, Austin, Parati, RXBAR, Eggo, Morningstar Farms, Bisco, Club, Luxe, Minueto, Special K, Toasteds, Town House, Zesta, Zoo Cartoon, Choco Krispis, Crunchy Nut, Kashi, Nutri-Grain, Squares, Zucaritas, Rice Krispies Treats, Sucrilhos, Pop-Tarts, K-Time, Sunibrite, Split Stix, LCMs, Coco Pops, Krave, Frosties, Rice Krispies Squares, Incogmeato, Veggitizers, Gardenburger, Trink, Carr’s, Kellogg’s Extra, Müsli, Fruit n Fibre, Kellogg’s Crunchy Nut, Country Store, Smacks, Honey Bsss, Zimmy’s, Toppas, Tresor, Froot Ring, Chocos, Chex, Guardian, Just Right, Sultana Bran, Rice Bubbles, Sustain, and Choco Krispies brand names. It sells its products to retailers through direct sales forces, as well as brokers and distributors. The company was formerly known as Kellogg Company and changed its name to Kellanova in October 2023. Kellanova was founded in 1906 and is headquartered in Chicago, Illinois.