Reviewing B&G Foods (BGS) and WhiteWave Foods (NYSE:WWAV)

WhiteWave Foods (NYSE: WWAV) and B&G Foods (NYSE:BGS) are both non-cyclical consumer goods & services companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, institutional ownership, dividends, profitability and risk.

Earnings and Valuation

This table compares WhiteWave Foods and B&G Foods’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
WhiteWave Foods N/A N/A N/A $1.11 50.67
B&G Foods $1.52 billion 1.37 $317.39 million $1.52 20.66

B&G Foods has higher revenue and earnings than WhiteWave Foods. B&G Foods is trading at a lower price-to-earnings ratio than WhiteWave Foods, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

WhiteWave Foods has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500. Comparatively, B&G Foods has a beta of 0.09, meaning that its stock price is 91% less volatile than the S&P 500.

Insider and Institutional Ownership

80.6% of WhiteWave Foods shares are owned by institutional investors. Comparatively, 93.5% of B&G Foods shares are owned by institutional investors. 6.2% of WhiteWave Foods shares are owned by company insiders. Comparatively, 2.2% of B&G Foods shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares WhiteWave Foods and B&G Foods’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
WhiteWave Foods 6.21% 17.51% 5.92%
B&G Foods 6.64% 15.43% 4.05%

Analyst Recommendations

This is a breakdown of recent ratings for WhiteWave Foods and B&G Foods, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WhiteWave Foods 1 3 0 0 1.75
B&G Foods 0 6 3 0 2.33

WhiteWave Foods presently has a consensus target price of $56.08, indicating a potential downside of 0.28%. B&G Foods has a consensus target price of $42.31, indicating a potential upside of 34.75%. Given B&G Foods’ stronger consensus rating and higher possible upside, analysts plainly believe B&G Foods is more favorable than WhiteWave Foods.

Dividends

B&G Foods pays an annual dividend of $1.86 per share and has a dividend yield of 5.9%. WhiteWave Foods does not pay a dividend. B&G Foods pays out 122.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. B&G Foods has raised its dividend for 6 consecutive years.

Summary

B&G Foods beats WhiteWave Foods on 9 of the 14 factors compared between the two stocks.

About WhiteWave Foods

The WhiteWave Foods Company is a consumer packaged food and beverage company. The Company manufactures, markets, distributes and sells branded plant-based foods and beverages, coffee creamers and beverages, dairy products and organic produce. It operates through two segments: Americas Foods & Beverages and Europe Foods & Beverages. The Americas Foods & Beverages segment includes plant-based foods and beverages, including its Silk and So Delicious branded beverages, such as soymilk, almondmilk, coconutmilk and cashewmilk, ice cream and frozen products, and plant-based yogurts, and Vega plant-based products. The Europe Foods & Beverages segment includes plant-based foods and beverages, such as its Alpro and Provamel brand beverages using soy, almond, coconut, hazelnut, rice and oat and other plant-based ingredients, and plant-based alternatives to yogurt, culinary creams, desserts and margarine. It sells products primarily in North America, Europe and through a joint venture in China.

About B&G Foods

B&G Foods, Inc. (B&G Foods) is a holding company. The Company manufactures, sells and distributes a portfolio of shelf-stable and frozen foods across the United States, Canada and Puerto Rico. Its products include frozen and canned vegetables, hot cereals, fruit spreads, canned meats and beans, bagel chips, spices, seasonings, hot sauces, wine vinegar, maple syrup, molasses, salad dressings, pizza crusts, Mexican-style sauces, dry soups, taco shells and kits, salsas, pickles, peppers, tomato-based products, puffed corn and rice snacks, nut clusters and other specialty products. Its products are marketed under various brands, including Ac’cent, B&G, B&M, Baker’s Joy, Bear Creek Country Kitchens, Brer Rabbit, Canoleo, Cary’s, Cream of Rice, Cream of Wheat, Devonsheer, Don Pepino, Durkee, New York Style, Old London, Original Tings, Ortega, Spice Islands, Spring Tree, Static Guard, Sugar Twin, Tone’s, Trappey’s, TrueNorth, Underwood, Vermont Maid, Victoria, Weber and Wright’s.

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