Head to Head Comparison: BRF (NYSE:BRFS) vs. Danone (OTCMKTS:DANOY)

BRF (NYSE:BRFS) and Danone (OTCMKTS:DANOY) are both consumer staples companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitability, risk and valuation.

Dividends

BRF pays an annual dividend of $0.09 per share and has a dividend yield of 2.4%. Danone pays an annual dividend of $0.34 per share and has a dividend yield of 1.9%. BRF pays out 23.7% of its earnings in the form of a dividend.

Profitability

This table compares BRF and Danone’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BRF	5.84%	20.20%	5.62%
Danone	N/A	N/A	N/A

Institutional and Insider Ownership

4.8% of BRF shares are held by institutional investors. Comparatively, 0.1% of Danone shares are held by institutional investors. 1.0% of BRF shares are held by company insiders. Comparatively, 1.0% of Danone shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares BRF and Danone”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BRF	$11.38 billion	N/A	$595.74 million	$0.38	9.88
Danone	$29.63 billion	2.01	$2.19 billion	N/A	N/A

Danone has higher revenue and earnings than BRF.

Analyst Ratings

This is a summary of recent recommendations for BRF and Danone, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BRF	0	1	0	1	3.00
Danone	1	4	1	0	2.00

BRF currently has a consensus price target of $3.50, indicating a potential downside of 6.79%. Given BRF’s stronger consensus rating and higher possible upside, equities research analysts clearly believe BRF is more favorable than Danone.

Risk and Volatility

BRF has a beta of 1.44, indicating that its share price is 44% more volatile than the S&P 500. Comparatively, Danone has a beta of 0.4, indicating that its share price is 60% less volatile than the S&P 500.

Summary

BRF beats Danone on 9 of the 13 factors compared between the two stocks.

About BRF

BRF S.A. raises, produces, and slaughters poultry and pork for processing, production, and sale of fresh meat, processed products, pasta, margarine, pet food, and other products. The company provides frozen whole and cut chicken, frozen pork, and turkey, and halal products for Islamic markets; processed foods, such as marinated, frozen, seasoned whole, and cut chicken, roosters, sausages, ham products, bologna, frankfurters, salamis, bacons, cold meats, and other smoked products; and hamburgers, steaks, breaded meat products, kibbeh, and meatballs, as well as chicken sausages, hot dogs, and chicken bologna. It produces and sells lasagna, macaroni and cheese, pies, ready-to-eat meals, pizzas, and other frozen foods; plant-based products, such as nuggets, pies, vegetables, and burgers; frozen desserts and cheese bread; margarine, butter, cream cheese, sweet specialties, sandwiches, and pate, as well as soy meal, refined soy flour, animal feed, pet food and hatcheries. The company sells its products under the Sadia, Perdigão, Qualy, Sadia Halal, Chester, BRF Ingredients, Kidelli, Perdix, Borella, Hilal, Balance, Onefoods, Banvit, Deline, Sadia Bio, Sadia Salamitos, Sadia Veg&Tal, Sadia Livre&Lev, Sadia Hot Pocket, Perdigão Ouro, Chester Perdigão, Perdigão NaBrasa, Claybom, Biofresh, Three Dogs, Three Cats, and Gran Plus brands. It serves supermarkets, wholesalers, retail and wholesale stores, restaurants, and other institutional buyers. The company provides consultancy, administrative, marketing, and logistics services; generates and commercializes electric energy; distributes nutrients for animals; veterinary activities; road freight; and imports, exports, industrializes, and commercializes of products, as well as real estate. The company was formerly known as BRF-Brasil Foods S.A. and changed its name to BRF S.A. in April 2013. BRF S.A. was founded in 1934 and is headquartered in São Paulo, Brazil. BRF S.A. operates as a subsidiary of Marfrig Global Foods S.A.

About Danone

Danone S.A. operates in the food and beverage industry in Europe, Ukraine, North America, China, North Asia, the Oceania, Latin America, rest of Asia, Africa, Turkey, the Middle East, and the Commonwealth of Independent States. The company operates through Essential Dairy & Plant-Based, Specialized Nutrition, and Waters segments. It produces and distributes yogurts, dairy products, coffee creamers and drinks, beverages, plant-based products, ice creams, frozen desserts, and cheese products under the Actimel, Activia, Alpro, Aptamil, Danette, Danio, Danonino, evian, Nutricia, Nutrilon, Volvic, Danone, Light & Fit, Oikos, YoPRO, International Delight, SToK, Silk, Follow Your Heart, and So Delicious. The company also provides specialized nutrition, including formulas and complementary feeding for babies and young children; and special medical purposes food for children and adults under the Aptamil, Nutrilon, Gallia, Cow & Gate, Bebelac, and Blédina brands. In addition, it offers tube feeding products under the Nutrison name; and oral nutritional supplements under the Fortimel and NutriDrink names. Further, the company provides mineral waters from natural sources, waters infused with natural fruit extracts, fruit juices, and vitamins under the evian, Volvic, AQUA, Mizone, Bonafont, Salus, Hayat, Sirma, Font Vella, Lanjarón, and Zywiec Zdroj brands. It distributes its products through retail chains and traditional market outlets; convenience stores; hotels, restaurants, and coffee outlets; hospitals, clinics, and pharmacies; and e-commerce channels. The company was formerly known as Groupe Danone and changed its name to Danone S.A. in April 2009. Danone S.A. was incorporated in 1899 and is headquartered in Paris, France.