Financial Contrast: Campbell Soup (CPB) versus MGP Ingredients (MGPI)
Campbell Soup (NYSE: CPB) and MGP Ingredients (NASDAQ:MGPI) are both non-cyclical consumer goods & services companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, analyst recommendations, earnings, valuation and risk.
This table compares Campbell Soup and MGP Ingredients’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
Campbell Soup has a beta of 0.4, indicating that its stock price is 60% less volatile than the S&P 500. Comparatively, MGP Ingredients has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500.
Earnings & Valuation
This table compares Campbell Soup and MGP Ingredients’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Campbell Soup||$7.89 billion||1.84||$887.00 million||$2.86||16.88|
|MGP Ingredients||$328.08 million||3.79||$31.18 million||$2.18||34.05|
Campbell Soup has higher revenue and earnings than MGP Ingredients. Campbell Soup is trading at a lower price-to-earnings ratio than MGP Ingredients, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and price targets for Campbell Soup and MGP Ingredients, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Campbell Soup presently has a consensus price target of $50.64, indicating a potential upside of 4.86%. MGP Ingredients has a consensus price target of $68.33, indicating a potential downside of 7.94%. Given Campbell Soup’s higher probable upside, equities analysts clearly believe Campbell Soup is more favorable than MGP Ingredients.
Institutional & Insider Ownership
46.0% of Campbell Soup shares are held by institutional investors. 37.2% of Campbell Soup shares are held by company insiders. Comparatively, 23.5% of MGP Ingredients shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Campbell Soup pays an annual dividend of $1.40 per share and has a dividend yield of 2.9%. MGP Ingredients pays an annual dividend of $0.16 per share and has a dividend yield of 0.2%. Campbell Soup pays out 49.0% of its earnings in the form of a dividend. MGP Ingredients pays out 7.3% 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.
Campbell Soup beats MGP Ingredients on 9 of the 16 factors compared between the two stocks.
About Campbell Soup
Campbell Soup Company is a food company, which manufactures and markets food products. The Company’s segments include Americas Simple Meals and Beverages; Global Biscuits and Snacks, and Campbell Fresh. The Americas Simple Meals and Beverages segment includes the retail and food service channel businesses. The segment includes the products, such as Campbell’s condensed and ready-to-serve soups; Swanson broth and stocks; Prego pasta sauces; Pace Mexican sauces; Campbell’s gravies, pasta, beans and dinner sauces; Plum food and snacks; V8 juices and beverages, and Campbell’s tomato juice. The Global Biscuits and Snacks segment includes Pepperidge Farm cookies, crackers, bakery and frozen products; Arnott’s biscuits, and Kelsen cookies. The Campbell Fresh segment includes Bolthouse Farms fresh carrots, carrot ingredients, refrigerated beverages and refrigerated salad dressings; Garden Fresh Gourmet salsa, hummus, dips and tortilla chips, and the United States refrigerated soup business.
About MGP Ingredients
MGP Ingredients, Inc. is a producer and supplier of distilled spirits, and specialty wheat protein and starch food ingredients. The Company’s distilled spirits include bourbon and rye whiskeys, and grain neutral spirits, including vodka and gin. The Company’s segments include distillery products and ingredient solutions. The distillery products segment consists of food grade alcohol and distillery co-products, such as distillers feed and fuel grade alcohol. The ingredient solutions segment consists of specialty starches and proteins, commodity starches and commodity proteins. The distillery products segment also includes warehouse services, including barrel put away, barrel storage, and barrel retrieval services. It is also a producer of industrial alcohol for use in both food and non-food applications. The Company’s distillery products are derived from corn and other grains (including rye, barley, wheat, barley malt and milo), and its ingredient products are derived from wheat flour.
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