Head-To-Head Review: Conagra Brands (NYSE:CAG) and Kerry Group (OTCMKTS:KRYAY)

Conagra Brands (NYSE:CAG) and Kerry Group (OTCMKTS:KRYAY) are both consumer staples companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, earnings, dividends, analyst recommendations, institutional ownership, risk and valuation.

Valuation and Earnings

This table compares Conagra Brands and Kerry Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Conagra Brands	$11.61 billion	0.70	$1.15 billion	($0.22)	-77.09
Kerry Group	$7.50 billion	1.86	$728.69 million	N/A	N/A

Conagra Brands has higher revenue and earnings than Kerry Group.

Profitability

This table compares Conagra Brands and Kerry Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Conagra Brands	-0.87%	10.59%	4.46%
Kerry Group	N/A	N/A	N/A

Dividends

Conagra Brands pays an annual dividend of $1.40 per share and has a dividend yield of 8.3%. Kerry Group pays an annual dividend of $0.68 per share and has a dividend yield of 0.8%. Conagra Brands pays out -636.4% of its earnings in the form of a dividend. Conagra Brands has raised its dividend for 5 consecutive years. Conagra Brands is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk & Volatility

Conagra Brands has a beta of -0.01, suggesting that its stock price is 101% less volatile than the S&P 500. Comparatively, Kerry Group has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500.

Insider and Institutional Ownership

83.8% of Conagra Brands shares are owned by institutional investors. Comparatively, 0.2% of Kerry Group shares are owned by institutional investors. 0.6% of Conagra Brands shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Conagra Brands and Kerry Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Conagra Brands	4	12	1	0	1.82
Kerry Group	0	1	2	0	2.67

Conagra Brands currently has a consensus price target of $18.71, suggesting a potential upside of 10.34%. Given Conagra Brands’ higher probable upside, equities analysts clearly believe Conagra Brands is more favorable than Kerry Group.

Summary

Conagra Brands beats Kerry Group on 10 of the 15 factors compared between the two stocks.

About Conagra Brands

Conagra Brands, Inc., together with its subsidiaries, operates as a consumer packaged goods food company primarily in the United States. The company operates through Grocery & Snacks, Refrigerated & Frozen, International, and Foodservice segments. The Grocery & Snacks segment primarily offers shelf stable food products through various retail channels. The Refrigerated & Frozen segment provides temperature-controlled food products through various retail channels. The International segment offers food products in various temperature states through retail and foodservice channels outside of the United States. The Foodservice segment offers branded and customized food products, including meals, entrees, sauces, and various custom-manufactured culinary products packaged for restaurants and other foodservice establishments. The company sells its products under the Birds Eye, Marie Callender's, Duncan Hines, Healthy Choice, Slim Jim, Reddi-wip, Angie's, BOOMCHICKAPOP, Duke's, Earth Balance, Gardein, and Frontera brands. The company was incorporated in 1919 and is headquartered in Chicago, Illinois.

About Kerry Group

Kerry Group plc, together with its subsidiaries, provides taste and nutrition solutions. The company operates in two segments, Taste & Nutrition, and Dairy Ireland. The Taste & Nutrition segment offers taste and nutrition solutions for the food, beverage, and pharmaceutical markets. The Dairy Ireland segment provides value-add dairy ingredients and consumer products, including functional proteins and nutritional bases. It operates in Ireland, rest of Europe, the Americas, the Asia Pacific, the Middle East, and Africa. Kerry Group plc was founded in 1972 and is headquartered in Tralee, Ireland.