Critical Contrast: Armanino Foods of Distinction (OTCMKTS:AMNF) & Tate & Lyle (OTCMKTS:TATYY)

Tate & Lyle (OTCMKTS:TATYY) and Armanino Foods of Distinction (OTCMKTS:AMNF) are both consumer staples companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, profitability, valuation, dividends, institutional ownership and earnings.

Institutional and Insider Ownership

0.1% of Armanino Foods of Distinction shares are held by institutional investors. 0.2% of Tate & Lyle shares are held by insiders. Comparatively, 30.2% of Armanino Foods of Distinction shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Tate & Lyle and Armanino Foods of Distinction”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tate & Lyle	$2.21 billion	0.98	$182.45 million	N/A	N/A
Armanino Foods of Distinction	$76.10 million	4.29	$18.70 million	$0.59	17.80

Tate & Lyle has higher revenue and earnings than Armanino Foods of Distinction.

Profitability

This table compares Tate & Lyle and Armanino Foods of Distinction’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tate & Lyle	N/A	N/A	N/A
Armanino Foods of Distinction	24.52%	50.33%	35.21%

Dividends

Tate & Lyle pays an annual dividend of $0.64 per share and has a dividend yield of 3.3%. Armanino Foods of Distinction pays an annual dividend of $0.20 per share and has a dividend yield of 1.9%. Armanino Foods of Distinction pays out 33.9% of its earnings in the form of a dividend.

Volatility & Risk

Tate & Lyle has a beta of 0.28, suggesting that its share price is 72% less volatile than the S&P 500. Comparatively, Armanino Foods of Distinction has a beta of 0.09, suggesting that its share price is 91% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Tate & Lyle and Armanino Foods of Distinction, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tate & Lyle	1	3	0	1	2.20
Armanino Foods of Distinction	0	1	2	0	2.67

Armanino Foods of Distinction has a consensus target price of $15.00, suggesting a potential upside of 42.86%. Given Armanino Foods of Distinction’s stronger consensus rating and higher possible upside, analysts clearly believe Armanino Foods of Distinction is more favorable than Tate & Lyle.

Summary

Armanino Foods of Distinction beats Tate & Lyle on 9 of the 15 factors compared between the two stocks.

About Tate & Lyle

Tate & Lyle PLC, together with its subsidiaries, provides ingredients and solutions to the food, beverage, and other industries in the United States, the United Kingdom, other European countries, and internationally. It operates through three segments: Food & Beverage Solutions, Sucralose, and Primary Products. The company offers dairy products, soups, sauces, and dressings; bakery products and snacks; texturants; nutritive sweeteners, such as high fructose corn syrup and dextrose; fibres; and stabilizers and functional systems. It also provides industrial starches; acidulants, such as citric acid; and commodities comprising corn gluten feed, meal, and corn oil. The company was incorporated in 1903 and is headquartered in London, the United Kingdom.

About Armanino Foods of Distinction

Armanino Foods of Distinction, Inc. produces and markets frozen food products in the United States. The company offers gourmet beef, Italian style beef and pork, and smoked turkey meatballs; grated parmesan and 3 cheese blend cheese; and various pesto, such as basil, artichoke, cilantro, dried tomato and garlic, roasted garlic, roasted red bell pepper, and southwest chipotle. It also provides frozen pasta, which includes beef cannelloni, cheese manicotti, cheese stuffed shells, cheese tortellini; pasta sheets, potato gnocchi, and tricolor cheese tortellini, as well as beef, butternut squash, four cheese, cheese and spinach, and wild mushroom ravioli; and various sauces, comprising creamy garlic, alfresco, Bolognese, chimichurri, harissa, and romesco. The company offers its products under the Armanino brand. It markets its products through a network of food brokers and sells to retail and foodservice distributors, club-type stores, and industrial accounts. The company was founded in 1978 and is based in Hayward, California.