Critical Comparison: Pilgrim’s Pride (NASDAQ:PPC) and Kewpie (OTCMKTS:KWPCY)

Pilgrim’s Pride (NASDAQ:PPC) and Kewpie (OTCMKTS:KWPCY) are both consumer staples companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, risk and valuation.

Earnings and Valuation

This table compares Pilgrim’s Pride and Kewpie”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pilgrim’s Pride	$18.50 billion	0.42	$1.08 billion	$2.30	14.02
Kewpie	N/A	N/A	N/A	N/A	N/A

Pilgrim’s Pride has higher revenue and earnings than Kewpie.

Insider & Institutional Ownership

16.6% of Pilgrim’s Pride shares are held by institutional investors. 82.2% of Pilgrim’s Pride shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Pilgrim’s Pride and Kewpie’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pilgrim’s Pride	2.96%	21.70%	7.90%
Kewpie	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Pilgrim’s Pride and Kewpie, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pilgrim’s Pride	1	5	2	0	2.12
Kewpie	0	0	0	0	0.00

Pilgrim’s Pride presently has a consensus target price of $36.50, indicating a potential upside of 13.18%. Given Pilgrim’s Pride’s stronger consensus rating and higher possible upside, analysts plainly believe Pilgrim’s Pride is more favorable than Kewpie.

Summary

Pilgrim’s Pride beats Kewpie on 9 of the 9 factors compared between the two stocks.

About Pilgrim’s Pride

Pilgrim’s Pride Corp. engages in the production, processing, marketing, and distribution of fresh, frozen and value-added chicken and pork products to retailers, distributors, and foodservice operators. It operates through the following segments: U.S., U.K. and Europe, and Mexico. The company was founded by Lonnie A. Pilgrim and Aubrey Pilgrim on October 2, 1946, and is headquartered in Greeley, CO.

About Kewpie

Kewpie Corporation, through its subsidiaries, engages in the manufacturing, wholesaling, transporting, and warehousing of food products in Japan and internationally. It offers condiments, including mayonnaise and dressings, and vinegar; egg products, such as liquid eggs, frozen eggs, dried eggs, egg spreads, and thick omelets; and delicatessen products comprising salads and delicatessen foods, and packaged salads. The company also provides processed foods consisting of bottled and/or canned foods, such as jams, fruit, pasta sauces, baby foods, and nursing care foods; and fine chemical products, including hyaluronic acid and others. In addition, it produces and sells fresh vegetables, dried meat, and machinery and equipment; provides consigned clerical work; engages in transportation and warehousing of food products, and sells equipment for cars, as well as is involved in the mail-order business. Further, the company offers advertising, publicity, and exhibitions services, as well as financial and business management services. The company was founded in 1919 and is headquartered in Tokyo, Japan.