Financial Review: Bunzl (OTCMKTS:BZLFY) and Sysco (NYSE:SYY)

Bunzl (OTCMKTS:BZLFY) and Sysco (NYSE:SYY) are both large-cap consumer staples companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, profitability, analyst recommendations, institutional ownership and valuation.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bunzl	$15.62 billion	0.70	$605.55 million	N/A	N/A
Sysco	$81.37 billion	0.45	$1.83 billion	$3.61	21.16

Sysco has higher revenue and earnings than Bunzl.

Insider & Institutional Ownership

0.1% of Bunzl shares are held by institutional investors. Comparatively, 83.4% of Sysco shares are held by institutional investors. 1.0% of Bunzl shares are held by insiders. Comparatively, 0.6% of Sysco shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

Bunzl pays an annual dividend of $0.69 per share and has a dividend yield of 4.1%. Sysco pays an annual dividend of $2.16 per share and has a dividend yield of 2.8%. Sysco pays out 59.8% of its earnings in the form of a dividend. Sysco has raised its dividend for 57 consecutive years.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Bunzl and Sysco, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bunzl	0	5	0	0	2.00
Sysco	0	7	9	0	2.56

Sysco has a consensus price target of $88.15, suggesting a potential upside of 15.38%. Given Sysco’s stronger consensus rating and higher possible upside, analysts plainly believe Sysco is more favorable than Bunzl.

Volatility & Risk

Bunzl has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500. Comparatively, Sysco has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500.

Profitability

This table compares Bunzl and Sysco’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bunzl	N/A	N/A	N/A
Sysco	2.08%	103.57%	8.06%

Summary

Sysco beats Bunzl on 10 of the 15 factors compared between the two stocks.

About Bunzl

Bunzl plc operates as a distribution and services company in the North America, Continental Europe, the United Kingdom, Ireland, and internationally. The company offers food packaging, films, labels, cleaning and hygiene supplies, and personal protection equipment to grocery stores, supermarkets, and convenience stores. It also provides food packaging, disposable tableware, guest amenities, catering equipment, agricultural supplies, cleaning and hygiene products, and safety items to hotels, restaurants, contract caterers, food processors, commercial growers, and the leisure sector; and gloves, boots, hard hats, ear and eye protection, and other workwear, as well as cleaning and hygiene supplies, and asset protection products to industrial and construction, and ecommerce sectors. In addition, the company offers chemicals and hygiene paper to cleaning and facilities management companies, and industrial and public sector customers; gloves, masks, swabs, gowns, bandages, and other healthcare related equipment; and healthcare devices to hospitals, care homes, and other facilities serving the healthcare sector. Further, it provides packaging and other store supplies to retail chains, boutiques, department stores, home improvement chains, office supply companies, and related e-commerce sales channels. Bunzl plc was founded in 1854 and is headquartered in London, the United Kingdom.

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.