Sysco (NYSE:SYY) vs. Marine Harvest ASA (OTCMKTS:MHGVY) Critical Contrast

Marine Harvest ASA (OTCMKTS:MHGVY) and Sysco (NYSE:SYY) are both large-cap consumer staples companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, dividends, analyst recommendations, risk and valuation.

Risk and Volatility

Marine Harvest ASA has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500. Comparatively, Sysco has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500.

Dividends

Marine Harvest ASA pays an annual dividend of $0.43 per share and has a dividend yield of 1.8%. Sysco pays an annual dividend of $2.16 per share and has a dividend yield of 2.9%. Marine Harvest ASA pays out 50.6% of its earnings in the form of a dividend. Sysco pays out 57.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Sysco has raised its dividend for 57 consecutive years. Sysco is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Marine Harvest ASA and Sysco’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Marine Harvest ASA	6.99%	12.66%	5.97%
Sysco	2.21%	112.04%	8.32%

Analyst Ratings

This is a summary of recent ratings and target prices for Marine Harvest ASA and Sysco, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Marine Harvest ASA	0	1	0	3	3.50
Sysco	0	5	8	0	2.62

Sysco has a consensus price target of $85.92, indicating a potential upside of 15.83%. Given Sysco’s higher possible upside, analysts clearly believe Sysco is more favorable than Marine Harvest ASA.

Earnings & Valuation

This table compares Marine Harvest ASA and Sysco”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Marine Harvest ASA	$6.06 billion	2.10	$506.96 million	$0.85	28.41
Sysco	$81.37 billion	0.44	$1.83 billion	$3.73	19.89

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

Institutional & Insider Ownership

83.4% of Sysco shares are owned by institutional investors. 0.6% of Sysco shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Sysco beats Marine Harvest ASA on 11 of the 18 factors compared between the two stocks.

About Marine Harvest ASA

Mowi ASA, a seafood company, farms, produces, and supplies Atlantic salmon products worldwide. It operates through three segments: Feed, Farming, and Sales and Marketing. The company is involved in the salmon feed production, salmon farming and primary processing, and seafood secondary processing activities. It offers whole fish, plain and marinated fillets and steaks, hot- and cold-smoked salmon, burgers and tartars, patties, gravad, sushi, and breaded products under the Ducktrap, MOWI, and Supreme Salmon brands. The company was formerly known as Marine Harvest ASA and changed its name to Mowi ASA in December 2018. Mowi ASA was founded in 1964 and is headquartered in Bergen, Norway.

About Sysco

Sysco Corporation, through its subsidiaries, engages in the marketing and distribution of various food and related products to the foodservice or food-away-from-home industry in the United States, Canada, the United Kingdom, France, and internationally. It operates through U.S. Foodservice Operations, International Foodservice Operations, SYGMA, and Other segments. The company distributes frozen food, such as meat, seafood, fully prepared entrées, fruits, vegetables, and desserts; canned and dry food products; fresh meat and seafood products; dairy products; beverages; imported specialties; and fresh produce products. It also supplies various non-food items, including paper products comprising disposable napkins, plates, and cups; tableware consisting of glassware and silverware; cookware, such as pots, pans, and utensils; restaurant and kitchen equipment and supplies; and cleaning supplies. The company serves restaurants, hospitals and nursing facilities, schools and colleges, hotels and motels, industrial caterers, and other foodservice venues. Sysco Corporation was incorporated in 1969 and is headquartered in Houston, Texas.