Financial Analysis: BellRing Brands (NYSE:BRBR) vs. Associated British Foods (OTCMKTS:ASBFY)

Associated British Foods (OTCMKTS:ASBFY) and BellRing Brands (NYSE:BRBR) are both consumer staples companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, profitability, earnings, analyst recommendations, institutional ownership and dividends.

Institutional and Insider Ownership

95.0% of BellRing Brands shares are held by institutional investors. 1.1% of BellRing Brands shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Associated British Foods	$26.11 billion	0.78	$1.85 billion	N/A	N/A
BellRing Brands	$2.32 billion	1.68	$216.20 million	$1.68	18.39

Associated British Foods has higher revenue and earnings than BellRing Brands.

Analyst Ratings

This is a breakdown of current recommendations for Associated British Foods and BellRing Brands, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Associated British Foods	2	1	0	1	2.00
BellRing Brands	1	6	11	0	2.56

BellRing Brands has a consensus target price of $42.53, indicating a potential upside of 37.69%. Given BellRing Brands’ stronger consensus rating and higher probable upside, analysts plainly believe BellRing Brands is more favorable than Associated British Foods.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Associated British Foods	N/A	N/A	N/A
BellRing Brands	9.33%	-95.87%	29.63%

Volatility & Risk

Associated British Foods has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500. Comparatively, BellRing Brands has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500.

Summary

BellRing Brands beats Associated British Foods on 8 of the 13 factors compared between the two stocks.

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.

About BellRing Brands

BellRing Brands, Inc., together with its subsidiaries, provides various nutrition products in the United States. The company offers ready-to-drink (RTD) protein shakes, other RTD beverages, powders, nutrition bars, and other products primarily under the Premier Protein and Dymatize brands. It distributes its products through club, food, drug, mass, eCommerce, specialty, and convenience channels. BellRing Brands, Inc. was incorporated in 2019 and is headquartered in Saint Louis, Missouri.