Dean Foods (NYSE: DF) and Mondelez International (NASDAQ:MDLZ) are both consumer staples companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, risk, valuation, earnings, profitability and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings for Dean Foods and Mondelez International, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dean Foods 3 7 3 0 2.00
Mondelez International 0 2 7 1 2.90

Dean Foods presently has a consensus target price of $14.67, indicating a potential upside of 33.33%. Mondelez International has a consensus target price of $50.50, indicating a potential upside of 24.20%. Given Dean Foods’ higher possible upside, analysts plainly believe Dean Foods is more favorable than Mondelez International.

Profitability

This table compares Dean Foods and Mondelez International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dean Foods 0.70% 16.63% 3.92%
Mondelez International 6.92% 11.96% 5.00%

Volatility and Risk

Dean Foods has a beta of 0.54, indicating that its stock price is 46% less volatile than the S&P 500. Comparatively, Mondelez International has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500.

Valuation & Earnings

This table compares Dean Foods and Mondelez International’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Dean Foods $7.91 billion 0.13 $376.23 million $0.60 18.33
Mondelez International $25.57 billion 2.40 $4.37 billion $1.14 35.67

Mondelez International has higher revenue and earnings than Dean Foods. Dean Foods is trading at a lower price-to-earnings ratio than Mondelez International, indicating that it is currently the more affordable of the two stocks.

Dividends

Dean Foods pays an annual dividend of $0.36 per share and has a dividend yield of 3.3%. Mondelez International pays an annual dividend of $0.76 per share and has a dividend yield of 1.9%. Dean Foods pays out 60.0% of its earnings in the form of a dividend. Mondelez International pays out 66.7% 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. Dean Foods is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

75.9% of Mondelez International shares are held by institutional investors. 1.2% of Dean Foods shares are held by insiders. Comparatively, 3.6% of Mondelez International shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Mondelez International beats Dean Foods on 13 of the 17 factors compared between the two stocks.

Dean Foods Company Profile

Dean Foods Company is a food and beverage company. The Company processes and distributes fluid milk, and other dairy and dairy case products in the United States. It is engaged in manufacturing, marketing, selling and distributing a range of branded and private label dairy and dairy case products. It offers branded and private label dairy case products, including fluid milk, ice cream, cultured dairy products, creamers, ice cream mix and other dairy products to retailers, distributors, foodservice outlets, educational institutions and governmental entities across the United States. It also offers juices, teas and bottled water. As of December 31, 2016, the Company had over 50 national, regional and local dairy brands, as well as private labels. As of December 31, 2016, the Company’s national, local and regional licensed brands included Alta Dena, Hygeia, PET, Arctic Splash, Jilbert, Pog, Barbers Dairy, Purity, Berkeley Farms, Land-O-Sun & design and ReadyLeaf, Broughton.

Mondelez International Company Profile

Mondelez International, Inc. is a snack company. The Company manufactures and markets snack food and beverage products for consumers. It operates through four segments: Latin America, Asia, Middle East, and Africa (AMEA), Europe and North America. As of December 31, 2016, its brands spanned five product categories: Biscuits (including cookies, crackers and salted snacks); Chocolate; Gum and candy; Beverages (including coffee and powdered beverages), and Cheese and grocery. Itsportfolio includes various snack brands, including Nabisco, Oreo, LU and belVita biscuits; Cadbury, Milka, Cadbury Dairy Milk and Toblerone chocolate; Trident gum; Halls candy, and Tang powdered beverages. The Company sells its products to supermarket chains, wholesalers, supercenters, club stores, mass merchandisers, distributors, convenience stores, gasoline stations, drug stores, value stores and retail food outlets. As of December 31, 2016, it sold its products to consumers in approximately 165 countries.

Receive News & Ratings for Dean Foods Company Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Dean Foods Company and related companies with Analyst Ratings Network's FREE daily email newsletter.