Contrasting BellRing Brands (NYSE:BRBR) and Kraft Heinz (NASDAQ:KHC)

BellRing Brands (NYSE:BRBR) and Kraft Heinz (NASDAQ:KHC) are both consumer staples companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.

Analyst Ratings

This is a summary of current ratings and price targets for BellRing Brands and Kraft Heinz, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BellRing Brands	2	5	12	0	2.53
Kraft Heinz	6	14	0	1	1.81

BellRing Brands currently has a consensus target price of $38.88, indicating a potential upside of 106.23%. Kraft Heinz has a consensus target price of $24.89, indicating a potential upside of 1.30%. Given BellRing Brands’ stronger consensus rating and higher probable upside, research analysts plainly believe BellRing Brands is more favorable than Kraft Heinz.

Valuation & Earnings

This table compares BellRing Brands and Kraft Heinz”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BellRing Brands	$2.32 billion	0.95	$216.20 million	$1.45	13.00
Kraft Heinz	$24.94 billion	1.17	-$5.85 billion	($4.94)	-4.97

BellRing Brands has higher earnings, but lower revenue than Kraft Heinz. Kraft Heinz is trading at a lower price-to-earnings ratio than BellRing Brands, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

95.0% of BellRing Brands shares are held by institutional investors. Comparatively, 78.2% of Kraft Heinz shares are held by institutional investors. 1.5% of BellRing Brands shares are held by company insiders. Comparatively, 0.4% of Kraft Heinz shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Risk and Volatility

BellRing Brands has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500. Comparatively, Kraft Heinz has a beta of 0.08, meaning that its stock price is 92% less volatile than the S&P 500.

Profitability

This table compares BellRing Brands and Kraft Heinz’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BellRing Brands	7.88%	-64.79%	25.12%
Kraft Heinz	-23.44%	7.07%	3.68%

Summary

BellRing Brands beats Kraft Heinz on 11 of the 15 factors compared between the two stocks.

About BellRing Brands

BellRing Brands, Inc., together with its subsidiaries, provides various nutrition products in the United States. The company offers ready-to-drink (RTD) protein shakes, other RTD beverages, powders, nutrition bars, and other products primarily under the Premier Protein and Dymatize brands. It distributes its products through club, food, drug, mass, eCommerce, specialty, and convenience channels. BellRing Brands, Inc. was incorporated in 2019 and is headquartered in Saint Louis, Missouri.

About Kraft Heinz

The Kraft Heinz Company, together with its subsidiaries, manufactures and markets food and beverage products in North America and internationally. Its products include condiments and sauces, cheese and dairy products, meals, meats, refreshment beverages, coffee, and other grocery products under the Kraft, Oscar Mayer, Heinz, Philadelphia, Lunchables, Velveeta, Ore-Ida, Maxwell House, Kool-Aid, Jell-O, Heinz, ABC, Master, Quero, Kraft, Golden Circle, Wattie's, Pudliszki, and Plasmon brands. It sells its products through its own sales organizations, as well as through independent brokers, agents, and distributors to chain, wholesale, cooperative, and independent grocery accounts; convenience, value, and club stores; pharmacies and drug stores; mass merchants; foodservice distributors; institutions, including hotels, restaurants, bakeries, hospitals, health care facilities, and government agencies; and online through various e-commerce platforms and retailers. The company was formerly known as H.J. Heinz Holding Corporation and changed its name to The Kraft Heinz Company in July 2015. The Kraft Heinz Company was founded in 1869 and is based in Pittsburgh, Pennsylvania.