Head-To-Head Contrast: Kellanova (NYSE:K) vs. Traeger (NYSE:COOK)

Kellanova (NYSE:K) and Traeger (NYSE:COOK) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.

Insider and Institutional Ownership

83.9% of Kellanova shares are held by institutional investors. Comparatively, 46.8% of Traeger shares are held by institutional investors. 1.8% of Kellanova shares are held by company insiders. Comparatively, 14.7% of Traeger shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Kellanova and Traeger, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kellanova	0	4	0	0	2.00
Traeger	2	5	1	0	1.88

Kellanova currently has a consensus target price of $83.50, indicating a potential upside of 0.04%. Traeger has a consensus target price of $2.09, indicating a potential upside of 128.58%. Given Traeger’s higher possible upside, analysts clearly believe Traeger is more favorable than Kellanova.

Volatility and Risk

Kellanova has a beta of 0.23, indicating that its stock price is 77% less volatile than the S&P 500. Comparatively, Traeger has a beta of 1.41, indicating that its stock price is 41% more volatile than the S&P 500.

Valuation & Earnings

This table compares Kellanova and Traeger”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kellanova	$12.75 billion	2.28	$1.34 billion	$3.64	22.93
Traeger	$604.07 million	0.21	-$34.01 million	($0.79)	-1.16

Kellanova has higher revenue and earnings than Traeger. Traeger is trading at a lower price-to-earnings ratio than Kellanova, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Kellanova and Traeger’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kellanova	10.08%	31.73%	8.32%
Traeger	-18.01%	-11.31%	-3.68%

Summary

Kellanova beats Traeger on 10 of the 14 factors compared between the two stocks.

About Kellanova

Kellanova, together with its subsidiaries, manufactures and markets snacks and convenience foods in North America, Europe, Latin America, the Asia Pacific, the Middle East, Australia, and Africa. Its principal products include crackers, crisps, savory snacks, toaster pastries, cereal bars, granola bars and bites, ready-to-eat cereals, frozen waffles, veggie foods, and noodles. The company offers its products under the Kellogg’s, Cheez-It, Pringles, Austin, Parati, RXBAR, Eggo, Morningstar Farms, Bisco, Club, Luxe, Minueto, Special K, Toasteds, Town House, Zesta, Zoo Cartoon, Choco Krispis, Crunchy Nut, Kashi, Nutri-Grain, Squares, Zucaritas, Rice Krispies Treats, Sucrilhos, Pop-Tarts, K-Time, Sunibrite, Split Stix, LCMs, Coco Pops, Krave, Frosties, Rice Krispies Squares, Incogmeato, Veggitizers, Gardenburger, Trink, Carr’s, Kellogg’s Extra, Müsli, Fruit n Fibre, Kellogg’s Crunchy Nut, Country Store, Smacks, Honey Bsss, Zimmy’s, Toppas, Tresor, Froot Ring, Chocos, Chex, Guardian, Just Right, Sultana Bran, Rice Bubbles, Sustain, and Choco Krispies brand names. It sells its products to retailers through direct sales forces, as well as brokers and distributors. The company was formerly known as Kellogg Company and changed its name to Kellanova in October 2023. Kellanova was founded in 1906 and is headquartered in Chicago, Illinois.

About Traeger

Traeger, Inc., together with its subsidiaries, designs, sources, sells, and supports wood pellet fueled barbecue grills for retailers, distributors, and direct to consumers in the United States. Its wood pellet grills are internet of things devices that allow owners to program, monitor, and control their grill through its Traeger app. The company also produces a library of digital content, including instructional recipes and videos that demonstrate tips, tricks, and cooking techniques that empower Traeger owners to progress their cooking skills; and short- and long-form branded content highlighting stories, community members, and lifestyle content from the Traegerhood. In addition, it provides wood pellets that are used to fire the grills; rubs, spices, and sauces; accessories, such as pop-and-lock accessory rail covers, drip trays, bucket liners, storage bins, and shelves; tools to aid in meal prep, cooking, and cleanup, including pellet storage systems, cleaning solutions, barbecue tools, and MEATER smart thermometer; replacement parts; and apparel and merchandise, including t-shirts, hooded sweatshirts, and baseball hats. Traeger, Inc. was founded in 1987 and is headquartered in Salt Lake City, Utah.