Volatility & Risk
Pilgrim’s Pride Corporation (NASDAQ: PPC) and Tyson Foods (NYSE:TSN) are both mid-cap consumer staples companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitabiliy, analyst recommendations, risk, earnings, valuation, institutional ownership and dividends.
Pilgrim’s Pride Corporation has a beta of 0.19, indicating that its stock price is 81% less volatile than the S&P 500. Comparatively, Tyson Foods has a beta of 0.26, indicating that its stock price is 74% less volatile than the S&P 500.
Valuation and Earnings
This table compares Pilgrim’s Pride Corporation and Tyson Foods’ gross revenue, earnings per share (EPS) and valuation.
Tyson Foods has higher revenue and earnings than Pilgrim’s Pride Corporation. Tyson Foods is trading at a lower price-to-earnings ratio than Pilgrim’s Pride Corporation, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
26.4% of Pilgrim’s Pride Corporation shares are held by institutional investors. Comparatively, 71.8% of Tyson Foods shares are held by institutional investors. 78.8% of Pilgrim’s Pride Corporation shares are held by company insiders. Comparatively, 2.7% of Tyson Foods shares are held 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.
Tyson Foods pays an annual dividend of $0.90 per share and has a dividend yield of 1.4%. Pilgrim’s Pride Corporation does not pay a dividend. Tyson Foods pays out 18.8% of its earnings in the form of a dividend. Pilgrim’s Pride Corporation has raised its dividend for 5 consecutive years.
This is a summary of current recommendations and price targets for Pilgrim’s Pride Corporation and Tyson Foods, as provided by MarketBeat.com.
Pilgrim’s Pride Corporation currently has a consensus price target of $23.33, indicating a potential downside of 3.46%. Tyson Foods has a consensus price target of $67.70, indicating a potential upside of 7.63%. Given Tyson Foods’ higher possible upside, analysts clearly believe Tyson Foods is more favorable than Pilgrim’s Pride Corporation.
This table compares Pilgrim’s Pride Corporation and Tyson Foods’ net margins, return on equity and return on assets.
Pilgrim’s Pride Corporation beats Tyson Foods on 9 of the 17 factors compared between the two stocks.
Pilgrim’s Pride Corporation 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.
Tyson Foods Company Profile
Tyson Foods, Inc. is a food company, which is engaged in offering chicken, beef and pork, as well as prepared foods. The Company offers food products under Tyson, Jimmy Dean, Hillshire Farm, Sara Lee, Ball Park, Wright, Aidells and State Fair brands. The Company operates through four segments: Chicken, Beef, Pork and Prepared Foods. It operates a vertically integrated chicken production process, which consists of breeding stock, contract growers, feed production, processing, further-processing, marketing and transportation of chicken and related allied products, including animal and pet food ingredients. Through its subsidiary, Cobb-Vantress, Inc. (Cobb), the Company is engaged in supplying poultry breeding stock across the world. It produces a range of fresh, frozen and refrigerated food products. Its products are marketed and sold by its sales staff to grocery retailers, grocery wholesalers, meat distributors, warehouse club stores and military commissaries, among others.