ConAgra Foods (NYSE: CAG) and Amira Nature Foods (NYSE:ANFI) are both consumer staples companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, earnings, risk, dividends and profitability.

Institutional & Insider Ownership

78.4% of ConAgra Foods shares are owned by institutional investors. Comparatively, 12.5% of Amira Nature Foods shares are owned by institutional investors. 0.8% of ConAgra Foods shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares ConAgra Foods and Amira Nature Foods’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ConAgra Foods 7.43% 20.29% 7.56%
Amira Nature Foods N/A N/A N/A

Volatility and Risk

ConAgra Foods has a beta of 0.33, indicating that its share price is 67% less volatile than the S&P 500. Comparatively, Amira Nature Foods has a beta of -0.16, indicating that its share price is 116% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for ConAgra Foods and Amira Nature Foods, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ConAgra Foods 1 2 7 0 2.60
Amira Nature Foods 0 1 1 0 2.50

ConAgra Foods presently has a consensus price target of $43.90, suggesting a potential upside of 25.82%. Amira Nature Foods has a consensus price target of $13.00, suggesting a potential upside of 125.69%. Given Amira Nature Foods’ higher probable upside, analysts plainly believe Amira Nature Foods is more favorable than ConAgra Foods.

Dividends

ConAgra Foods pays an annual dividend of $0.85 per share and has a dividend yield of 2.4%. Amira Nature Foods does not pay a dividend. ConAgra Foods pays out 57.8% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares ConAgra Foods and Amira Nature Foods’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
ConAgra Foods $7.83 billion 1.86 $1.57 billion $1.47 23.73
Amira Nature Foods $551.88 million 0.38 $70.71 million N/A N/A

ConAgra Foods has higher revenue and earnings than Amira Nature Foods.

Summary

ConAgra Foods beats Amira Nature Foods on 12 of the 14 factors compared between the two stocks.

About ConAgra Foods

Conagra Brands, Inc., formerly ConAgra Foods, Inc., operates as a packaged food company. The Company operates through two segments: Consumer Foods and Commercial Foods. The Company sells branded and customized food products, as well as commercially branded foods. It also supplies vegetable, spice and grain products to a range of restaurants, foodservice operators and commercial customers. Conagra Foodservice offers products to restaurants, retailers, commercial customers and other foodservice suppliers. The Company also operates in the countries outside the United States, such as Canada and Mexico. The Company’s brands include Marie Callender’s, Healthy Choice, Slim Jim, Hebrew National, Orville Redenbacher’s, Peter Pan, Reddi-wip, PAM, Snack Pack, Banquet, Chef Boyardee, Egg Beaters, Rosarita, Fleischmann’s and Hunt’s. The Company sells its products in grocery, convenience, mass merchandise and club stores.

About Amira Nature Foods

Amira Nature Foods Ltd is primarily engaged in the business of processing and selling packaged Indian specialty rice, primarily basmati rice and other food products. The Company sells Basmati rice and other specialty rice, under its Amira brand, as well as under other third-party brands. It also sells non-basmati rice. It has developed a line of Amira branded products to complement its packaged rice offerings, including edible oil, snacks, ready-to-heat meals and a line of organic product offerings. It is engaged in the institutional sale of bulk commodities to international and regional trading firms, which includes wheat, barley, legume, maize, sugar, soybean meal, onion, potato, millet and others. Its Amira branded product line includes Amira Pure Basmati Rice, Amira Indian Basmati Rice, Smoked Basmati Rice, Amira Khichdi Rice, Amira Navratan Mix and others. The Company’s third-party branded rice products include Euricom Brown Basmati Rice, Bonne Chance Long Grain Rice and others.

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