Sysco (NYSE:SYY) & Cuisine Solutions (OTCMKTS:CUSI) Critical Comparison

Cuisine Solutions (OTCMKTS:CUSI) and Sysco (NYSE:SYY) are both consumer staples companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, profitability, earnings and risk.

Insider & Institutional Ownership

83.4% of Sysco shares are owned by institutional investors. 61.1% of Cuisine Solutions shares are owned by insiders. Comparatively, 0.6% of Sysco 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.

Profitability

This table compares Cuisine Solutions and Sysco’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cuisine Solutions	N/A	N/A	N/A
Sysco	2.17%	109.21%	8.24%

Earnings and Valuation

This table compares Cuisine Solutions and Sysco”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cuisine Solutions	N/A	N/A	N/A	N/A	N/A
Sysco	$81.37 billion	0.51	$1.83 billion	$3.72	23.26

Sysco has higher revenue and earnings than Cuisine Solutions.

Risk & Volatility

Cuisine Solutions has a beta of -0.35, suggesting that its share price is 135% less volatile than the S&P 500. Comparatively, Sysco has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Cuisine Solutions and Sysco, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cuisine Solutions	0	0	0	0	0.00
Sysco	0	6	9	0	2.60

Sysco has a consensus target price of $89.38, indicating a potential upside of 3.31%. Given Sysco’s stronger consensus rating and higher possible upside, analysts plainly believe Sysco is more favorable than Cuisine Solutions.

Summary

Sysco beats Cuisine Solutions on 9 of the 10 factors compared between the two stocks.

About Cuisine Solutions

Cuisine Solutions, Inc. produces and markets various food products in the United States. Its products include beef, lamb, pork and veal, pastas, poultry, sauces, seafood, and vegetarian meals. The company offers its products to foodservice, on board services, retail, military, and national restaurant chain industries. Cuisine Solutions, Inc. was founded in 1972 and is based in Sterling, Virginia.

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.