Reviewing Danone (OTCMKTS:DANOY) and Associated British Foods (OTCMKTS:ASBFY)

Danone (OTCMKTS:DANOY) and Associated British Foods (OTCMKTS:ASBFY) are both large-cap consumer staples companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, analyst recommendations, risk, valuation, dividends and institutional ownership.

Dividends

Danone pays an annual dividend of $0.34 per share and has a dividend yield of 2.0%. Associated British Foods pays an annual dividend of $0.46 per share and has a dividend yield of 1.7%.

Valuation & Earnings

This table compares Danone and Associated British Foods”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Danone	$29.63 billion	1.97	$2.19 billion	N/A	N/A
Associated British Foods	$26.11 billion	0.74	$1.85 billion	N/A	N/A

Danone has higher revenue and earnings than Associated British Foods.

Institutional and Insider Ownership

0.1% of Danone shares are held by institutional investors. 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 will outperform the market over the long term.

Volatility & Risk

Danone has a beta of 0.4, suggesting that its share price is 60% less volatile than the S&P 500. Comparatively, Associated British Foods has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500.

Profitability

This table compares Danone and Associated British Foods’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Danone	N/A	N/A	N/A
Associated British Foods	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent recommendations for Danone and Associated British Foods, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Danone	0	4	2	0	2.33
Associated British Foods	1	1	0	0	1.50

Summary

Danone beats Associated British Foods on 8 of the 9 factors compared between the two stocks.

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.

About Associated British Foods

Associated British Foods plc operates as a diversified food, ingredients, and retail company worldwide. It operates through five segments: Grocery, Ingredients, Agriculture, Sugar, and Retail. The Grocery segment manufactures and sells grocery products, including hot beverages, sugar and sweeteners, vegetable oils, balsamic vinegars, bread and baked goods, cereals, ethnic foods, and meat products to retail, wholesale, and foodservice businesses. The Ingredients segment manufactures bakers' yeast, bakery ingredients, enzymes, lipids, yeast extracts, and cereal specialties. The Agriculture segment manufactures and sells animal feeds; and provides other products and services for the agriculture sector. The Sugar segment is involved in growing, processing, and selling sugar beet and sugar cane to industrial users. The Retail segment is involved in buying and merchandising clothing and accessories through the Primark and Penneys retail chains, which offer women's, men's, and kids wear, as well as beauty, homeware, and accessories. The company was incorporated in 1934 and is headquartered in London, the United Kingdom. Associated British Foods plc operates as a subsidiary of Wittington Investments Limited.