Critical Comparison: Want Want China (OTCMKTS:WWNTY) versus TreeHouse Foods (NYSE:THS)

TreeHouse Foods (NYSE:THS) and Want Want China (OTCMKTS:WWNTY) are both consumer staples companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, analyst recommendations, earnings, valuation and profitability.

Insider and Institutional Ownership

99.8% of TreeHouse Foods shares are owned by institutional investors. 11.1% of TreeHouse Foods shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares TreeHouse Foods and Want Want China”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TreeHouse Foods	$3.35 billion	0.37	$26.90 million	($4.80)	-5.09
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 TreeHouse Foods.

Risk & Volatility

TreeHouse Foods has a beta of 0.18, meaning that its stock price is 82% 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TreeHouse Foods	-7.25%	5.52%	2.06%
Want Want China	N/A	N/A	N/A

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TreeHouse Foods	1	7	0	0	1.88
Want Want China	0	0	0	0	0.00

TreeHouse Foods currently has a consensus price target of $23.40, suggesting a potential downside of 4.22%. Given TreeHouse Foods’ stronger consensus rating and higher possible upside, equities research analysts plainly believe TreeHouse Foods is more favorable than Want Want China.

Summary

TreeHouse Foods beats Want Want China on 8 of the 11 factors compared between the two stocks.

About TreeHouse Foods

TreeHouse Foods, Inc. manufactures and distributes private brands snacks and beverages in the United States and internationally. The company provides snacking products, such as crackers, pretzels, in-store bakery items, frozen griddle items, cookies, and candies; and beverage and drink mixes, including non-dairy creamer, coffee, broths/stocks, powdered beverages and other blends, tea, and ready-to-drink-beverages. It also offers groceries comprising pickles, refrigerated dough, hot cereal, and cheese and puddings, as well as natural, organic, and gluten-free products. The company sells its products through various distribution channels, including retailers, foodservice distributors, food-away-from-home customers, refrigerated and frozen formats, and co-manufacturers, as well as industrial and export, which includes food manufacturers and repackagers of foodservice products. TreeHouse Foods, Inc. was founded in 1862 and is based in Oak Brook, Illinois.

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.