United Natural Foods (NYSE:UNFI) versus Conagra Brands (NYSE:CAG) Head to Head Comparison

United Natural Foods (NYSE:UNFI) and Conagra Brands (NYSE:CAG) are both consumer staples companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, institutional ownership, earnings and dividends.

Volatility and Risk

United Natural Foods has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500. Comparatively, Conagra Brands has a beta of 0.08, suggesting that its stock price is 92% less volatile than the S&P 500.

Profitability

This table compares United Natural Foods and Conagra Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
United Natural Foods	-0.21%	3.13%	0.66%
Conagra Brands	9.92%	12.52%	5.25%

Institutional and Insider Ownership

87.6% of United Natural Foods shares are held by institutional investors. Comparatively, 83.8% of Conagra Brands shares are held by institutional investors. 2.1% of United Natural Foods shares are held by insiders. Comparatively, 0.6% of Conagra Brands 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.

Earnings and Valuation

This table compares United Natural Foods and Conagra Brands”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
United Natural Foods	$32.24 billion	0.05	-$112.00 million	($1.15)	-22.93
Conagra Brands	$11.61 billion	0.79	$1.15 billion	$2.39	8.02

Conagra Brands has lower revenue, but higher earnings than United Natural Foods. United Natural Foods is trading at a lower price-to-earnings ratio than Conagra Brands, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and target prices for United Natural Foods and Conagra Brands, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United Natural Foods	0	7	2	0	2.22
Conagra Brands	2	9	1	1	2.08

United Natural Foods presently has a consensus price target of $28.1250, suggesting a potential upside of 6.66%. Conagra Brands has a consensus price target of $22.5833, suggesting a potential upside of 17.87%. Given Conagra Brands’ higher probable upside, analysts plainly believe Conagra Brands is more favorable than United Natural Foods.

Summary

Conagra Brands beats United Natural Foods on 9 of the 15 factors compared between the two stocks.

About United Natural Foods

United Natural Foods, Inc., together with its subsidiaries, distributes natural, organic, specialty, produce, and conventional grocery and non-food products in the United States and Canada. It operates in two segments, Wholesale and Retail. The company offers grocery and general merchandise, produce, perishables and frozen foods, wellness and personal care items, and bulk and foodservice products. It also provides nuts, dried fruit, seeds, trail mixes, granola, natural and organic snack items, and confections under the Woodstock Farms Manufacturing name; organic, non-GMO project verified, and specialty food and non-food items under the Blue Marble brand name; pet food under the WILD HARVEST brand name; and various products under the ESSENTIAL EVERYDAY, SHOPPERS VALUE, Field Day, EQUALINE, CULINARY CIRCLE, and STONE RIDGE CREAMERY brand names. In addition, the company provides home, health and beauty care, and pharmacy products, as well as private label products through a network of Cub Foods and Shoppers retail grocery stores; and retail store support, pricing strategy, shelf and planogram management, advertising, couponing, ecommerce, consumer convenience, store design, equipment sourcing, electronic payments processing, network and data hosting, point-of-sale hardware and software, automation tools, sustainability, and administrative back-office solution services. Further, it offers consumer and trade marketing programs, and programs to support suppliers in understanding its markets. The company serves chains, independent retailers, and supernatural chains, as well as foodservice, ecommerce, conventional military business, and other sales customers. United Natural Foods, Inc. was founded in 1976 and is headquartered in Providence, Rhode Island.

About Conagra Brands

Conagra Brands, Inc., together with its subsidiaries, operates as a consumer packaged goods food company primarily in the United States. The company operates through Grocery & Snacks, Refrigerated & Frozen, International, and Foodservice segments. The Grocery & Snacks segment primarily offers shelf stable food products through various retail channels. The Refrigerated & Frozen segment provides temperature-controlled food products through various retail channels. The International segment offers food products in various temperature states through retail and foodservice channels outside of the United States. The Foodservice segment offers branded and customized food products, including meals, entrees, sauces, and various custom-manufactured culinary products packaged for restaurants and other foodservice establishments. The company sells its products under the Birds Eye, Marie Callender's, Duncan Hines, Healthy Choice, Slim Jim, Reddi-wip, Angie's, BOOMCHICKAPOP, Duke's, Earth Balance, Gardein, and Frontera brands. The company was incorporated in 1919 and is headquartered in Chicago, Illinois.