Analyzing Tyson Foods (TSN) and BRF (BRFS)
Tyson Foods (NYSE: TSN) and BRF (NYSE:BRFS) are both mid-cap consumer staples companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitabiliy, dividends, earnings and institutional ownership.
Tyson Foods pays an annual dividend of $0.90 per share and has a dividend yield of 1.5%. BRF pays an annual dividend of $0.15 per share and has a dividend yield of 1.2%. Tyson Foods pays out 18.8% of its earnings in the form of a dividend. BRF pays out -57.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. BRF has increased its dividend for 5 consecutive years.
Volatility and Risk
Tyson Foods has a beta of 0.22, meaning that its stock price is 78% less volatile than the S&P 500. Comparatively, BRF has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500.
This table compares Tyson Foods and BRF’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Tyson Foods and BRF’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Tyson Foods||$36.82 billion||0.61||$3.77 billion||$4.79||12.86|
|BRF||$10.26 billion||0.96||$899.04 million||($0.26)||-47.38|
Tyson Foods has higher revenue and earnings than BRF. BRF is trading at a lower price-to-earnings ratio than Tyson Foods, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations and price targets for Tyson Foods and BRF, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Tyson Foods currently has a consensus target price of $67.78, suggesting a potential upside of 10.01%. BRF has a consensus target price of $14.00, suggesting a potential upside of 13.64%. Given BRF’s higher probable upside, analysts plainly believe BRF is more favorable than Tyson Foods.
Insider & Institutional Ownership
71.4% of Tyson Foods shares are held by institutional investors. Comparatively, 9.4% of BRF shares are held by institutional investors. 2.7% of Tyson Foods shares are held by insiders. Comparatively, 1.0% of BRF shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Tyson Foods beats BRF on 11 of the 16 factors compared between the two stocks.
About Tyson Foods
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.
BRF S.A. is a multinational Brazilian company that owns a diverse portfolio of products and is a producer of foods. The Company’s segments include Brazil, Latin America (LATAM), Europe, Middle East and North of Africa (MENA), Asia, Africa and Other Segments. These segments include sales of all distribution channels and operations subdivided in to poultry, pork and other, processed, and other sales. The poultry operations include the production and sale of whole poultry and in-natura cuts. The pork and other operations involve the production and sale of in-natura cuts. The processed operations include the production and sale of processed foods, frozen and processed products derived from poultry, pork and beef, margarine, vegetable and soybean-based products. The other sales operations include the commercialization of flour for food service and others. Other segments include sale of in-natura beef cuts, agricultural products and animal feed.
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