Analyzing Lamb Weston (NYSE:LW) and GLG Life Tech (OTCMKTS:GLGLF)

Lamb Weston (NYSE:LW) and GLG Life Tech (OTCMKTS:GLGLF) are both consumer staples companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, profitability, analyst recommendations, valuation and risk.

Earnings & Valuation

This table compares Lamb Weston and GLG Life Tech”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lamb Weston	$6.45 billion	1.24	$357.20 million	$2.51	22.92
GLG Life Tech	$10.62 million	0.00	$48.29 million	$1.32	N/A

Lamb Weston has higher revenue and earnings than GLG Life Tech. GLG Life Tech is trading at a lower price-to-earnings ratio than Lamb Weston, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Lamb Weston and GLG Life Tech, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lamb Weston	0	7	3	0	2.30
GLG Life Tech	0	0	0	0	0.00

Lamb Weston presently has a consensus price target of $65.30, indicating a potential upside of 13.49%. Given Lamb Weston’s stronger consensus rating and higher probable upside, research analysts clearly believe Lamb Weston is more favorable than GLG Life Tech.

Volatility & Risk

Lamb Weston has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500. Comparatively, GLG Life Tech has a beta of 1.91, meaning that its share price is 91% more volatile than the S&P 500.

Profitability

This table compares Lamb Weston and GLG Life Tech’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lamb Weston	5.54%	27.99%	6.43%
GLG Life Tech	498.04%	N/A	-76.15%

Institutional and Insider Ownership

89.6% of Lamb Weston shares are owned by institutional investors. 0.3% of Lamb Weston shares are owned by company 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.

Summary

Lamb Weston beats GLG Life Tech on 10 of the 12 factors compared between the two stocks.

About Lamb Weston

Lamb Weston Holdings, Inc. produces, distributes, and markets frozen potato products worldwide. The company operates through four segments: Global, Foodservice, Retail, and Other. It offers frozen potatoes, commercial ingredients, and appetizers under the Lamb Weston brand, as well as under various customer labels. The company also provides its products under its owned or licensed brands, such as Grown in Idaho and Alexia, and other licensed brands, as well as under retailers' own brands. In addition, it engages in the vegetable and dairy businesses. The company sells its products through a network of internal sales personnel and independent brokers, agents, and distributors to chain restaurants, wholesale, grocery, mass merchants, club and specialty retailers, businesses, educational institutions, independent restaurants, regional chain restaurants, and convenience stores. Lamb Weston Holdings, Inc. was incorporated in 1950 and is headquartered in Eagle, Idaho.

About GLG Life Tech

GLG Life Tech Corporation researches for, develops, grows, refines, and produces natural sweeteners extracted from the stevia plant and monk fruit in Canada and internationally. It also offers P-Pro Plus, a pea protein product; REB M GOLD, a bioconverted Rebaudioside M and Rebaudioside D. sweetener; and natural ingredients. It serves in the food and beverage industry. The company was formerly known as GLG Life Tech Limited and changed its name to GLG Life Tech Corporation in March 2007. GLG Life Tech Corporation was incorporated in 1998 and is headquartered in Richmond, Canada.