George Weston (OTCMKTS:WNGRF – Get Free Report) and Associated British Foods (OTCMKTS:ASBFY – Get Free Report) are both large-cap consumer staples companies, but which is the better investment? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, earnings, profitability and institutional ownership.
Dividends
George Weston pays an annual dividend of $0.85 per share and has a dividend yield of 1.2%. Associated British Foods pays an annual dividend of $0.96 per share and has a dividend yield of 3.4%. George Weston pays out 31.4% of its earnings in the form of a dividend.
Profitability
This table compares George Weston and Associated British Foods’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| George Weston | 2.37% | 13.21% | 3.33% |
| Associated British Foods | N/A | N/A | N/A |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| George Weston | 0 | 2 | 4 | 0 | 2.67 |
| Associated British Foods | 3 | 1 | 0 | 1 | 1.80 |
Institutional & Insider Ownership
0.0% of George Weston shares are held by institutional investors. 53.6% of George Weston 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.
Valuation and Earnings
This table compares George Weston 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 | |
| George Weston | $44.97 billion | 0.58 | $991.80 million | $2.71 | 25.35 |
| Associated British Foods | $25.41 billion | 0.80 | $1.34 billion | N/A | N/A |
Associated British Foods has lower revenue, but higher earnings than George Weston.
Volatility & Risk
George Weston has a beta of 0.55, indicating that its stock price is 45% less volatile than the S&P 500. Comparatively, Associated British Foods has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500.
Summary
George Weston beats Associated British Foods on 8 of the 14 factors compared between the two stocks.
About George Weston
George Weston Limited provides food and drug retailing, and financial services in Canada. The company operates through two segments, Loblaw Companies Limited (Loblaw) and Choice Properties Real Estate Investment Trust (Choice Properties). The Loblaw segment provides grocery, pharmacy and healthcare services, health and beauty products, apparel, general merchandise, and financial services. This segment also offers credit card and other banking services, insurance brokerage services, guaranteed investment certificates, and wireless mobile products and services. The Choice Properties segment owns, operates, manages, and develops retail commercial and residential properties, leased to necessity-based tenants, industrial, and mixed-use and residential assets. It markets its products under the Shoppers Drug Mart, Joe Fresh, President’s Choice Bank, no name, Farmer’s Market, T&T, Life Brand, and PC Optimum brands. The company was founded in 1882 and is based in Toronto, Canada. George Weston Limited operates as a subsidiary of Wittington Investments, Limited.
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.
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