Analyzing Marzetti (NASDAQ:MZTI) and Bunzl (OTCMKTS:BZLFY)

Bunzl (OTCMKTS:BZLFY) and Marzetti (NASDAQ:MZTI) 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 dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.

Risk & Volatility

Bunzl has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500. Comparatively, Marzetti has a beta of 0.39, suggesting that its stock price is 61% less volatile than the S&P 500.

Valuation and Earnings

This table compares Bunzl and Marzetti”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bunzl	$15.05 billion	0.63	$640.23 million	N/A	N/A
Marzetti	$1.94 billion	2.33	$167.35 million	$6.53	25.26

Bunzl has higher revenue and earnings than Marzetti.

Profitability

This table compares Bunzl and Marzetti’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bunzl	N/A	N/A	N/A
Marzetti	9.25%	18.55%	14.39%

Dividends

Bunzl pays an annual dividend of $0.25 per share and has a dividend yield of 1.7%. Marzetti pays an annual dividend of $4.00 per share and has a dividend yield of 2.4%. Marzetti pays out 61.3% of its earnings in the form of a dividend. Marzetti has increased its dividend for 62 consecutive years. Marzetti is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

0.1% of Bunzl shares are held by institutional investors. Comparatively, 66.4% of Marzetti shares are held by institutional investors. 1.0% of Bunzl shares are held by company insiders. Comparatively, 29.1% of Marzetti shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Bunzl and Marzetti, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bunzl	0	5	1	2	2.63
Marzetti	0	3	1	0	2.25

Marzetti has a consensus target price of $188.00, indicating a potential upside of 13.97%. Given Marzetti’s higher probable upside, analysts clearly believe Marzetti is more favorable than Bunzl.

Summary

Marzetti beats Bunzl on 9 of the 15 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 Marzetti

Lancaster Colony Corporation engages in the manufacturing and marketing of specialty food products for the retail and foodservice channels in the United States. It operates in two segments, Retail and Foodservice. The company offers frozen garlic bread under the New York BRAND Bakery; frozen Parkerhouse style yeast and dinner rolls under the Sister Schubert's brand; salad dressings under the Marzetti, Simply Dressed, Cardini's, and Girard's brands; vegetable and fruit dips under the Marzetti brand; croutons and salad toppings under the New York BRAND Bakery, Chatham Village, and Marzetti brands; and frozen pasta under the Marzetti Frozen Pasta brand. It also manufactures and sells other products to brand license agreements, including Olive Garden dressings, Buffalo Wild Wings sauces, and Chick-fil-A sauces. The company sells its products through sales personnel, food brokers, and distributors to retailers and restaurants. Lancaster Colony Corporation was incorporated in 1961 and is based in Westerville, Ohio.