Kraft Heinz (KHC) and Campbell Soup (CPB) Critical Comparison
Campbell Soup (NYSE: CPB) and Kraft Heinz (NASDAQ:KHC) are both large-cap non-cyclical consumer goods & services companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, analyst recommendations, institutional ownership and earnings.
This is a summary of recent recommendations and price targets for Campbell Soup and Kraft Heinz, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Campbell Soup presently has a consensus target price of $50.64, suggesting a potential upside of 11.26%. Kraft Heinz has a consensus target price of $92.54, suggesting a potential upside of 19.64%. Given Kraft Heinz’s stronger consensus rating and higher probable upside, analysts plainly believe Kraft Heinz is more favorable than Campbell Soup.
This table compares Campbell Soup and Kraft Heinz’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Campbell Soup and Kraft Heinz’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Campbell Soup||$7.89 billion||1.73||$887.00 million||$2.86||15.91|
|Kraft Heinz||$26.49 billion||3.56||$3.63 billion||$3.21||24.10|
Kraft Heinz has higher revenue and earnings than Campbell Soup. Campbell Soup is trading at a lower price-to-earnings ratio than Kraft Heinz, indicating that it is currently the more affordable of the two stocks.
Campbell Soup pays an annual dividend of $1.40 per share and has a dividend yield of 3.1%. Kraft Heinz pays an annual dividend of $2.50 per share and has a dividend yield of 3.2%. Campbell Soup pays out 49.0% of its earnings in the form of a dividend. Kraft Heinz pays out 77.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kraft Heinz has increased its dividend for 2 consecutive years. Kraft Heinz is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Insider and Institutional Ownership
46.0% of Campbell Soup shares are held by institutional investors. Comparatively, 62.0% of Kraft Heinz shares are held by institutional investors. 37.2% of Campbell Soup shares are held by company insiders. Comparatively, 26.9% of Kraft Heinz shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Kraft Heinz beats Campbell Soup on 12 of the 16 factors compared between the two stocks.
Campbell Soup Company Profile
Campbell Soup Company is a food company, which manufactures and markets food products. The Company’s segments include Americas Simple Meals and Beverages; Global Biscuits and Snacks, and Campbell Fresh. The Americas Simple Meals and Beverages segment includes the retail and food service channel businesses. The segment includes the products, such as Campbell’s condensed and ready-to-serve soups; Swanson broth and stocks; Prego pasta sauces; Pace Mexican sauces; Campbell’s gravies, pasta, beans and dinner sauces; Plum food and snacks; V8 juices and beverages, and Campbell’s tomato juice. The Global Biscuits and Snacks segment includes Pepperidge Farm cookies, crackers, bakery and frozen products; Arnott’s biscuits, and Kelsen cookies. The Campbell Fresh segment includes Bolthouse Farms fresh carrots, carrot ingredients, refrigerated beverages and refrigerated salad dressings; Garden Fresh Gourmet salsa, hummus, dips and tortilla chips, and the United States refrigerated soup business.
Kraft Heinz Company Profile
The Kraft Heinz Company is a food and beverage company. The Company is engaged in the manufacturing and marketing of food and beverage products, including condiments and sauces, cheese and dairy, meals, meats, refreshment beverages, coffee and other grocery products. The Company’s segments include the United States, Canada and Europe. The Company’s remaining businesses are combined as Rest of World. The Rest of World consists of Latin America and Asia, Middle East and Africa (AMEA). The Company provides products for various occasions whether at home, in restaurants or on the go. The Company’s brands include Heinz, Kraft, Oscar Mayer, Philadelphia, Planters, Velveeta, Lunchables, Maxwell House, Capri Sun, and Ore-Ida. The Company’s products are sold through its own sales organizations and through independent brokers, agents and distributors to chain, wholesale, cooperative and independent grocery accounts, convenience stores, drug stores, value stores, bakeries and pharmacies.
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