Financial Analysis: SYSCO (NYSE:SYY) & HF Foods Group (NYSE:HFFG)
SYSCO (NYSE:SYY) and HF Foods Group (NASDAQ:HFFG) are both consumer staples companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, valuation, analyst recommendations and dividends.
Valuation & Earnings
This table compares SYSCO and HF Foods Group’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|SYSCO||$60.11 billion||0.67||$1.67 billion||$3.55||22.01|
|HF Foods Group||$291.01 million||1.44||$6.35 million||N/A||N/A|
Insider and Institutional Ownership
78.2% of SYSCO shares are owned by institutional investors. Comparatively, 4.4% of HF Foods Group shares are owned by institutional investors. 7.9% of SYSCO shares are owned by insiders. Comparatively, 30.3% of HF Foods Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
SYSCO pays an annual dividend of $1.56 per share and has a dividend yield of 2.0%. HF Foods Group does not pay a dividend. SYSCO pays out 43.9% of its earnings in the form of a dividend. SYSCO has raised its dividend for 48 consecutive years.
This is a breakdown of recent ratings for SYSCO and HF Foods Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|HF Foods Group||0||0||0||0||N/A|
SYSCO currently has a consensus price target of $73.48, indicating a potential downside of 5.94%. Given SYSCO’s higher possible upside, analysts plainly believe SYSCO is more favorable than HF Foods Group.
Risk & Volatility
SYSCO has a beta of 0.48, indicating that its stock price is 52% less volatile than the S&P 500. Comparatively, HF Foods Group has a beta of 2.2, indicating that its stock price is 120% more volatile than the S&P 500.
This table compares SYSCO and HF Foods Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|HF Foods Group||2.25%||18.91%||7.62%|
SYSCO beats HF Foods Group on 10 of the 15 factors compared between the two stocks.
SYSCO Company Profile
Sysco Corporation, through its subsidiaries, markets and distributes a range of food and related products primarily to the foodservice or food-away-from-home industry. It operates through three segments: U.S. Foodservice Operations, International Foodservice Operations, and SYGMA. The company distributes a line of frozen foods, such as meats, seafood, fully prepared entrees, fruits, vegetables, and desserts; a line of canned and dry foods; fresh meats and seafood; dairy products; beverage products; imported specialties; and fresh produce. It also supplies various non-food items, including paper products comprising disposable napkins, plates, and cups; tableware consisting of China and silverware; cookware, which include pots, pans, and utensils; restaurant and kitchen equipment and supplies; and cleaning supplies. The company serves restaurants, hospitals and nursing homes, schools and colleges, hotels and motels, industrial caterers, and other foodservice venues. As of February 25, 2019, it operated 330 distribution facilities worldwide. Sysco Corporation was founded in 1969 and is headquartered in Houston, Texas.
HF Foods Group Company Profile
HF Foods Group Inc. markets and distributes fresh produces, frozen and dry food products, and non-food products primarily to Asian/Chinese restaurants and other food service customers in the Southeast region of the United States. It also offers design and printing, and trucking services, as well as Chinese herb supplements. In addition, the company operates as a real estate holding company. HF Foods Group Inc. is headquartered in Greensboro, North Carolina.
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