Smithfield Foods (SFD) and Pilgrim's Pride (PPC) Critical Contrast

Smithfield Foods (NYSE: SFD) and Pilgrim's Pride (NASDAQ:PPC) are both non-cyclical consumer goods & services companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, valuation, earnings, analyst recommendations, institutional ownership and profitability.

Valuation & Earnings

This table compares Smithfield Foods and Pilgrim's Pride’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Smithfield Foods N/A N/A N/A ($4,198.95) N/A
Pilgrim's Pride $10.77 billion 0.62 $694.58 million $2.79 9.68

Pilgrim's Pride has higher revenue and earnings than Smithfield Foods. Smithfield Foods is trading at a lower price-to-earnings ratio than Pilgrim's Pride, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

25.1% of Pilgrim's Pride shares are owned by institutional investors. 78.8% of Pilgrim's Pride 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.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Smithfield Foods and Pilgrim's Pride, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Smithfield Foods 0 0 0 0 N/A
Pilgrim's Pride 0 6 0 0 2.00

Pilgrim's Pride has a consensus target price of $31.67, indicating a potential upside of 17.28%.

Profitability

This table compares Smithfield Foods and Pilgrim's Pride’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Smithfield Foods N/A N/A N/A
Pilgrim's Pride 7.08% 55.06% 16.01%

Summary

Pilgrim's Pride beats Smithfield Foods on 8 of the 8 factors compared between the two stocks.

Smithfield Foods Company Profile

Smithfield Foods, Inc. produces and markets a variety of fresh meat and packaged meats products both domestically and internationally. The Company operates in four segments: Pork, Hog Production, International and Corporate, each of which consists of a number of subsidiaries, joint ventures and other investments. The Pork segment consists mainly of its three wholly owned United States fresh pork and packaged meats subsidiaries: The Smithfield Packing Company, Inc. (Smithfield Packing), Farmland Foods, Inc. (Farmland Foods) and John Morrell Food Group (John Morrell). The Hog Production segment consists of the Company’s hog production operations located in the United States. On September 2012 (fiscal 2013), the Company acquired a 70% controlling interest in American Skin Food Group, LLC. Effective September 26, 2013, Shuanghui International Holdings Ltd merged with Smithfield Foods Inc, a producer and wholesaler of pork meat products.

Pilgrim's Pride Company Profile

Pilgrim’s Pride Corporation is a retail feed store. It is a producer and seller of chicken with operations in the United States, Mexico and Puerto Rico. It is engaged in the production, processing, marketing and distribution of fresh, frozen and value-added chicken products to retailers, distributors and foodservice operators. It offers a range of products to its customers through national and international distribution channels. Its fresh chicken products consist of refrigerated (non-frozen) whole chickens, whole cut-up chickens and selected chicken parts that are either marinated or non-marinated. Its prepared chicken products include ready-to-cook and individually frozen chicken parts, strips, nuggets and patties, some of which are either breaded or non-breaded and either marinated or non-marinated. As of December 25, 2016, the Company marketed its portfolio of fresh, prepared and value-added chicken products across the United States, Mexico and in approximately 80 other countries.

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