Critical Survey: Sysco (NYSE:SYY) vs. Above Food Ingredients (NASDAQ:ABVE)

Sysco (NYSE:SYY) and Above Food Ingredients (NASDAQ:ABVE) are both consumer staples companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, valuation, risk and profitability.

Profitability

This table compares Sysco and Above Food Ingredients’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sysco	2.17%	109.21%	8.24%
Above Food Ingredients	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent ratings and target prices for Sysco and Above Food Ingredients, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sysco	0	6	9	0	2.60
Above Food Ingredients	0	0	0	0	0.00

Sysco currently has a consensus price target of $87.85, indicating a potential upside of 14.70%. Given Sysco’s stronger consensus rating and higher possible upside, analysts clearly believe Sysco is more favorable than Above Food Ingredients.

Volatility and Risk

Sysco has a beta of 0.69, suggesting that its share price is 31% less volatile than the S&P 500. Comparatively, Above Food Ingredients has a beta of 0.12, suggesting that its share price is 88% less volatile than the S&P 500.

Earnings & Valuation

This table compares Sysco and Above Food Ingredients”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sysco	$81.37 billion	0.45	$1.83 billion	$3.72	20.59
Above Food Ingredients	$273.06 million	0.10	-$39.49 million	N/A	N/A

Sysco has higher revenue and earnings than Above Food Ingredients.

Insider & Institutional Ownership

83.4% of Sysco shares are held by institutional investors. Comparatively, 28.8% of Above Food Ingredients shares are held by institutional investors. 0.6% of Sysco shares are held by company insiders. Comparatively, 64.5% of Above Food Ingredients shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Sysco beats Above Food Ingredients on 11 of the 12 factors compared between the two stocks.

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.

About Above Food Ingredients

Above Food Ingredients Inc., a regenerative ingredient company, produces vertically integrated supply chain products in Canada, the United States, Mexico, China, France, Turkey, and internationally. It operates through two segments: Disruptive Agriculture and Rudimentary Ingredients, and Consumer Packaged Goods. The Disruptive Agriculture and Rudimentary Ingredients segment engages in the provisioning of discrete genetics, origination, purchasing, grading, processing, and sale of regeneratively grown grain; and origination, purchase, and sale of bespoke ingredients products. The Consumer Packaged Goods segment formulates, manufactures, sells, distributes, and markets proprietary consumer product formulations in owned brands; and focuses on manufacturing and distribution for private-labeled retail owned brands. Above Food Ingredients Inc. is based in Regina, Canada.