Critical Review: Bunzl (OTCMKTS:BZLFY) vs. US Foods (NYSE:USFD)

Bunzl (OTCMKTS:BZLFY) and US Foods (NYSE:USFD) are both large-cap consumer staples companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, earnings, dividends, institutional ownership, valuation, profitability and analyst recommendations.

Earnings & Valuation

This table compares Bunzl and US Foods”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bunzl	$15.62 billion	0.68	$605.55 million	N/A	N/A
US Foods	$39.42 billion	0.52	$676.00 million	$2.94	31.57

US Foods has higher revenue and earnings than Bunzl.

Volatility & Risk

Bunzl has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500. Comparatively, US Foods has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Bunzl and US Foods, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bunzl	0	6	0	0	2.00
US Foods	0	3	10	0	2.77

US Foods has a consensus price target of $107.33, indicating a potential upside of 15.66%. Given US Foods’ stronger consensus rating and higher probable upside, analysts plainly believe US Foods is more favorable than Bunzl.

Profitability

This table compares Bunzl and US Foods’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bunzl	N/A	N/A	N/A
US Foods	1.71%	18.74%	6.09%

Institutional & Insider Ownership

0.1% of Bunzl shares are owned by institutional investors. Comparatively, 98.8% of US Foods shares are owned by institutional investors. 1.0% of Bunzl shares are owned by insiders. Comparatively, 0.7% of US Foods shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

US Foods beats Bunzl on 10 of the 12 factors compared between the two stocks.

About Bunzl

Bunzl plc operates as a distribution and services company in the North America, Continental Europe, the United Kingdom, Ireland, and internationally. The company offers food packaging, films, labels, cleaning and hygiene supplies, and personal protection equipment to grocery stores, supermarkets, and convenience stores. It also provides food packaging, disposable tableware, guest amenities, catering equipment, agricultural supplies, cleaning and hygiene products, and safety items to hotels, restaurants, contract caterers, food processors, commercial growers, and the leisure sector; and gloves, boots, hard hats, ear and eye protection, and other workwear, as well as cleaning and hygiene supplies, and asset protection products to industrial and construction, and ecommerce sectors. In addition, the company offers chemicals and hygiene paper to cleaning and facilities management companies, and industrial and public sector customers; gloves, masks, swabs, gowns, bandages, and other healthcare related equipment; and healthcare devices to hospitals, care homes, and other facilities serving the healthcare sector. Further, it provides packaging and other store supplies to retail chains, boutiques, department stores, home improvement chains, office supply companies, and related e-commerce sales channels. Bunzl plc was founded in 1854 and is headquartered in London, the United Kingdom.

About US Foods

US Foods Holding Corp., together with its subsidiaries, engages in marketing, sale, and distribution of fresh, frozen, and dry food and non-food products to foodservice customers in the United States. The company's customers include independently owned single and multi-unit restaurants, regional concepts, national restaurant chains, hospitals, nursing homes, hotels and motels, country clubs, government and military organizations, colleges and universities, and retail locations. The company was formerly known as USF Holding Corp. and changed its name to US Foods Holding Corp. in February 2016. US Foods Holding Corp. was incorporated in 2007 and is headquartered in Rosemont, Illinois.