Reviewing Lamb Weston (NYSE:LW) and Want Want China (OTCMKTS:WWNTY)

Lamb Weston (NYSE:LW) and Want Want China (OTCMKTS:WWNTY) are both mid-cap consumer staples companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, valuation, earnings, analyst recommendations, risk and institutional ownership.

Dividends

Lamb Weston pays an annual dividend of $1.52 per share and has a dividend yield of 3.1%. Want Want China pays an annual dividend of $0.95 per share and has a dividend yield of 3.2%. Lamb Weston pays out 54.7% of its earnings in the form of a dividend. Lamb Weston has increased its dividend for 7 consecutive years.

Institutional & Insider Ownership

89.6% of Lamb Weston shares are held by institutional investors. 0.3% of Lamb Weston shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Lamb Weston and Want Want China”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lamb Weston	$6.45 billion	1.07	$357.20 million	$2.78	17.92
Want Want China	$3.23 billion	2.19	$600.91 million	N/A	N/A

Want Want China has lower revenue, but higher earnings than Lamb Weston.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Lamb Weston and Want Want China, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lamb Weston	1	9	3	0	2.15
Want Want China	0	0	0	0	0.00

Lamb Weston presently has a consensus target price of $53.00, indicating a potential upside of 6.37%. Given Lamb Weston’s stronger consensus rating and higher possible upside, analysts plainly believe Lamb Weston is more favorable than Want Want China.

Profitability

This table compares Lamb Weston and Want Want China’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lamb Weston	6.06%	27.71%	6.52%
Want Want China	N/A	N/A	N/A

Volatility and Risk

Lamb Weston has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500. Comparatively, Want Want China has a beta of 0.13, meaning that its stock price is 87% less volatile than the S&P 500.

Summary

Lamb Weston beats Want Want China on 11 of the 15 factors compared between the two stocks.

About Lamb Weston

Lamb Weston Holdings, Inc. produces, distributes, and markets frozen potato products worldwide. The company operates through four segments: Global, Foodservice, Retail, and Other. It offers frozen potatoes, commercial ingredients, and appetizers under the Lamb Weston brand, as well as under various customer labels. The company also provides its products under its owned or licensed brands, such as Grown in Idaho and Alexia, and other licensed brands, as well as under retailers' own brands. In addition, it engages in the vegetable and dairy businesses. The company sells its products through a network of internal sales personnel and independent brokers, agents, and distributors to chain restaurants, wholesale, grocery, mass merchants, club and specialty retailers, businesses, educational institutions, independent restaurants, regional chain restaurants, and convenience stores. Lamb Weston Holdings, Inc. was incorporated in 1950 and is headquartered in Eagle, Idaho.

About Want Want China

Want Want China Holdings Limited, an investment holding company, manufactures, distributes, and sells food and beverages. The company operates through four segments: Rice Crackers, Dairy Products and Beverages, Snack Foods, and Other Products. It offers sugar coated crackers, savoury crackers, fried crackers, and gift packs; flavored milk, room temperature yogurt, yogurt drinks, ready-to-drink coffee, juice and sports drinks, herbal tea, and milk powder; candies, popsicles, ball cakes and jellies, beans, nuts, and other snacks; and wine and other food products. The company also trades in food and beverages, and related activities online, as well as raw materials, machineries, etc.; sells chemical materials and plastic films/bags; manufactures and sells machineries and related services; manufactures dehydrating, deoxidating, preservative, and related products; manufactures and sells packaging materials, packing bags, carton boxes, and cans; provides consultancy, information, business, and network technology services; processes and sells rice and oil products; and manufactures and sells rice flour. In addition, it engages in the agricultural planting and management, and livestock and poultry breeding businesses. It serves customers through a sales and distribution network primarily in the People's Republic of China. The company also exports its products to North America, East Asia, South East Asia, and Europe. Want The company was founded in 1962 and is headquartered in Kowloon Bay, Hong Kong.