The J.M. Smucker (NYSE: SJM) and Landec (NASDAQ:LNDC) are both consumer staples companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, profitability, dividends and earnings.
This table compares The J.M. Smucker and Landec’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|The J.M. Smucker||17.16%||12.46%||5.72%|
This is a summary of current recommendations and price targets for The J.M. Smucker and Landec, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|The J.M. Smucker||4||5||6||0||2.13|
The J.M. Smucker currently has a consensus target price of $130.17, suggesting a potential upside of 7.98%. Landec has a consensus target price of $15.50, suggesting a potential upside of 10.71%. Given Landec’s stronger consensus rating and higher possible upside, analysts plainly believe Landec is more favorable than The J.M. Smucker.
Earnings and Valuation
This table compares The J.M. Smucker and Landec’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|The J.M. Smucker||$7.39 billion||1.85||$592.30 million||$7.72||15.62|
|Landec||$532.26 million||0.72||$10.59 million||$0.38||36.84|
The J.M. Smucker has higher revenue and earnings than Landec. The J.M. Smucker is trading at a lower price-to-earnings ratio than Landec, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
The J.M. Smucker has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500. Comparatively, Landec has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500.
Insider & Institutional Ownership
77.6% of The J.M. Smucker shares are held by institutional investors. Comparatively, 93.8% of Landec shares are held by institutional investors. 3.5% of The J.M. Smucker shares are held by company insiders. Comparatively, 4.6% of Landec 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.
The J.M. Smucker pays an annual dividend of $3.12 per share and has a dividend yield of 2.6%. Landec does not pay a dividend. The J.M. Smucker pays out 40.4% of its earnings in the form of a dividend. The J.M. Smucker has raised its dividend for 16 consecutive years.
The J.M. Smucker beats Landec on 10 of the 17 factors compared between the two stocks.
About The J.M. Smucker
The J. M. Smucker Company manufactures and markets branded food and beverage products worldwide. It operates through U.S. Retail Coffee, U.S. Retail Consumer Foods, U.S. Retail Pet Foods, and International and Foodservice segments. The company primarily offers coffee, pet food products, pet snacks, peanut butter, fruit spreads, shortening and oils, baking mixes and ready-to-spread frostings, frozen sandwiches, flour and baking ingredients, juices and beverages, and portion control products. It also provides pet premium products, dog snacks, ice cream toppings, pickles, and canned milk. The company offers its products primarily under the Folgers, Dunkin' Donuts, Café Bustelo, Folgers Gourmet Selections, Jif, Smucker's, Crisco, Pillsbury, Meow Mix, Milk-Bone, Natural Balance, Kibbles ?n Bits, 9Lives, Pup-Peroni, Nature's Recipe, Robin Hood, Five Roses, and Douwe Egberts brands. It sells its products through direct sales and brokers to food retailers, food wholesalers, drug stores, club stores, mass merchandisers, discount and dollar stores, military commissaries, natural foods stores and distributors, pet specialty stores, and online retailers; and through retail channels, and foodservice distributors and operators. The company was founded in 1897 and is headquartered in Orrville, Ohio.
Landec Corporation, together with its subsidiaries, designs, develops, manufactures, and sells differentiated health and wellness products for food and biomaterials markets. It operates through three segments: Packaged Fresh Vegetables, Food Export, and Biomaterials. The Packaged Fresh Vegetables segment markets and packs specialty packaged whole and fresh-cut fruits and vegetables utilizing the BreatheWay specialty packaging technology for the retail grocery, club store, and food service industries under the Eat Smart and GreenLine brands, as well as private label brands; and sells BreatheWay packaging technology to partners for fruit and vegetable products. The Food Export segment purchases and sells whole commodity fruit and vegetable products primarily to Asian markets. The Biomaterials segment sells products utilizing sodium hyaluronate (HA), a naturally occurring polysaccharide that is distributed in the extracellular matrix of connective tissues in animals and humans, and non-HA products for medical use primarily in the ophthalmic, orthopedic, and other markets, as well as supplies HA to customers pursuing other medical applications, such as aesthetic surgery, medical device coatings, tissue engineering, and pharmaceuticals. It also operates as a contract development and manufacturing organization, which specializes in fermentation and aseptic formulation, filling, and packaging services. The company also researches, develops, and licenses Landec's Intelimer polymers for agricultural products, personal care products, and other industrial products. Landec Corporation sells its products in the United States, Canada, Taiwan, Belgium, China, Indonesia, Japan, and other countries. The company was founded in 1986 and is headquartered in Menlo Park, California.
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