Head to Head Review: Mondelez International (MDLZ) & AdvancePierre Foods (APFH)
Mondelez International (NASDAQ: MDLZ) and AdvancePierre Foods (NYSE:APFH) are both mid-cap non-cyclical consumer goods & services companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, earnings, risk, valuation and dividends.
This table compares Mondelez International and AdvancePierre Foods’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current recommendations and price targets for Mondelez International and AdvancePierre Foods, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Mondelez International presently has a consensus target price of $49.69, suggesting a potential upside of 14.60%. AdvancePierre Foods has a consensus target price of $37.67, suggesting a potential downside of 6.42%. Given Mondelez International’s stronger consensus rating and higher probable upside, analysts plainly believe Mondelez International is more favorable than AdvancePierre Foods.
Mondelez International pays an annual dividend of $0.88 per share and has a dividend yield of 2.0%. AdvancePierre Foods pays an annual dividend of $0.64 per share and has a dividend yield of 1.6%. Mondelez International pays out 61.1% of its earnings in the form of a dividend. AdvancePierre Foods pays out 31.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Institutional and Insider Ownership
75.8% of Mondelez International shares are held by institutional investors. 3.6% of Mondelez International 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.
Valuation and Earnings
This table compares Mondelez International and AdvancePierre Foods’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Mondelez International||$25.92 billion||2.50||$1.66 billion||$1.44||30.11|
Mondelez International has higher revenue and earnings than AdvancePierre Foods. AdvancePierre Foods is trading at a lower price-to-earnings ratio than Mondelez International, indicating that it is currently the more affordable of the two stocks.
Mondelez International beats AdvancePierre Foods on 11 of the 14 factors compared between the two stocks.
Mondelez International Company Profile
Mondelez International, Inc. is a snack company. The Company manufactures and markets snack food and beverage products for consumers. It operates through four segments: Latin America, Asia, Middle East, and Africa (AMEA), Europe and North America. As of December 31, 2016, its brands spanned five product categories: Biscuits (including cookies, crackers and salted snacks); Chocolate; Gum and candy; Beverages (including coffee and powdered beverages), and Cheese and grocery. Itsportfolio includes various snack brands, including Nabisco, Oreo, LU and belVita biscuits; Cadbury, Milka, Cadbury Dairy Milk and Toblerone chocolate; Trident gum; Halls candy, and Tang powdered beverages. The Company sells its products to supermarket chains, wholesalers, supercenters, club stores, mass merchandisers, distributors, convenience stores, gasoline stations, drug stores, value stores and retail food outlets. As of December 31, 2016, it sold its products to consumers in approximately 165 countries.
AdvancePierre Foods Company Profile
AdvancePierre Foods Holdings, Inc. is a producer and distributor of ready-to-eat sandwiches, sandwich components and other entrees and snacks. The Company operates through four segments. The Foodservice segment’s portfolio of products includes breakfast sandwiches, peanut butter and jelly sandwiches, Philly steaks, fully cooked hamburger-patties, country-fried steak, stuffed entrees and chicken tenders. The Retail segment sells both branded and private label ready-to-eat sandwiches, such as grilled chicken sandwiches and stuffed pockets; sandwich components, such as chicken patties, and other entrees and snacks, such as stuffed chicken breasts. The Convenience segment sells customized ready-to-eat sandwiches, such as breakfast sandwiches and burgers; sandwich components, such as chicken patties, and other entrees and snacks, such as cinnamon dough bites. The Industrial segment supplies other food producers, such as packaged food companies under short-term co-manufacturing agreements.
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