Financial Contrast: Australian Oilseeds (NASDAQ:COOT) and Sysco (NYSE:SYY)

Sysco (NYSE:SYY) and Australian Oilseeds (NASDAQ:COOT) are both consumer staples companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.

Institutional and Insider Ownership

83.4% of Sysco shares are owned by institutional investors. Comparatively, 13.0% of Australian Oilseeds shares are owned by institutional investors. 0.6% of Sysco shares are owned by insiders. Comparatively, 69.1% of Australian Oilseeds shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Sysco has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500. Comparatively, Australian Oilseeds has a beta of -0.11, suggesting that its share price is 111% less volatile than the S&P 500.

Profitability

This table compares Sysco and Australian Oilseeds’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sysco	2.25%	109.52%	8.37%
Australian Oilseeds	-2.98%	-102.42%	-4.13%

Analyst Ratings

This is a summary of recent ratings and price targets for Sysco and Australian Oilseeds, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sysco	0	6	9	0	2.60
Australian Oilseeds	1	0	0	0	1.00

Sysco presently has a consensus target price of $87.00, suggesting a potential upside of 10.76%. Given Sysco’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Sysco is more favorable than Australian Oilseeds.

Valuation and Earnings

This table compares Sysco and Australian Oilseeds”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sysco	$81.37 billion	0.46	$1.83 billion	$3.73	21.06
Australian Oilseeds	$27.01 million	1.78	-$800,000.00	($0.04)	-43.00

Sysco has higher revenue and earnings than Australian Oilseeds. Australian Oilseeds is trading at a lower price-to-earnings ratio than Sysco, indicating that it is currently the more affordable of the two stocks.

Summary

Sysco beats Australian Oilseeds on 12 of the 14 factors compared between the two stocks.

About Sysco

Sysco Corporation, through its subsidiaries, engages in the marketing and distribution of various food and related products to the foodservice or food-away-from-home industry in the United States, Canada, the United Kingdom, France, and internationally. It operates through U.S. Foodservice Operations, International Foodservice Operations, SYGMA, and Other segments. The company distributes frozen food, such as meat, seafood, fully prepared entrées, fruits, vegetables, and desserts; canned and dry food products; fresh meat and seafood products; dairy products; beverages; imported specialties; and fresh produce products. It also supplies various non-food items, including paper products comprising disposable napkins, plates, and cups; tableware consisting of glassware and silverware; cookware, such as pots, pans, and utensils; restaurant and kitchen equipment and supplies; and cleaning supplies. The company serves restaurants, hospitals and nursing facilities, schools and colleges, hotels and motels, industrial caterers, and other foodservice venues. Sysco Corporation was incorporated in 1969 and is headquartered in Houston, Texas.

About Australian Oilseeds

Australian Oilseeds Holdings Ltd. engages in the manufacture and sale oil seeds through its subsidiaries. It focuses on acquiring, engaging in a share exchange, share reconstruction, and amalgamation with, purchasing all or substantially all the assets of, entering contractual arrangements with, or engaging in any other similar business combination with one or more businesses or entities. The company was founded on December 29, 2022 and is headquartered in Cootamundra, Australia.