Reviewing Utz Brands (NYSE:UTZ) & Campbell’s (NASDAQ:CPB)

Campbell’s (NASDAQ:CPB) and Utz Brands (NYSE:UTZ) are both consumer staples companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, analyst recommendations, risk, valuation, dividends and institutional ownership.

Institutional and Insider Ownership

52.4% of Campbell’s shares are held by institutional investors. Comparatively, 96.0% of Utz Brands shares are held by institutional investors. 19.8% of Campbell’s shares are held by company insiders. Comparatively, 12.7% of Utz Brands shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

Campbell’s pays an annual dividend of $1.56 per share and has a dividend yield of 7.4%. Utz Brands pays an annual dividend of $0.25 per share and has a dividend yield of 3.4%. Campbell’s pays out 85.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Utz Brands pays out -250.0% of its earnings in the form of a dividend. Utz Brands has raised its dividend for 3 consecutive years.

Profitability

This table compares Campbell’s and Utz Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Campbell’s	5.48%	19.96%	5.21%
Utz Brands	-0.58%	8.61%	4.17%

Volatility & Risk

Campbell’s has a beta of 0.01, suggesting that its share price is 99% less volatile than the S&P 500. Comparatively, Utz Brands has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500.

Valuation and Earnings

This table compares Campbell’s and Utz Brands”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Campbell’s	$10.25 billion	0.61	$602.00 million	$1.83	11.54
Utz Brands	$1.44 billion	0.73	$800,000.00	($0.10)	-73.33

Campbell’s has higher revenue and earnings than Utz Brands. Utz Brands is trading at a lower price-to-earnings ratio than Campbell’s, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations for Campbell’s and Utz Brands, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Campbell’s	7	13	1	0	1.71
Utz Brands	1	3	4	0	2.38

Campbell’s currently has a consensus target price of $24.59, indicating a potential upside of 16.48%. Utz Brands has a consensus target price of $12.06, indicating a potential upside of 64.40%. Given Utz Brands’ stronger consensus rating and higher probable upside, analysts clearly believe Utz Brands is more favorable than Campbell’s.

Summary

Campbell’s beats Utz Brands on 9 of the 17 factors compared between the two stocks.

About Campbell’s

The Campbell’s Company, formerly known as Campbell Soup Company, together with its subsidiaries, manufactures and markets food and beverage products in the United States and internationally. The company operates through Meals & Beverages and Snacks segments. The Meals & Beverages segment engages in the retail and foodservice businesses in the United States and Canada. This segment provides Campbell’s condensed and ready-to-serve soups; Swanson broth and stocks; Pacific Foods broth, soups, and non-dairy beverages; Prego pasta sauces; Pace Mexican sauces; Campbell’s gravies, pasta, beans, and dinner sauces; Swanson canned poultry; V8 juices and beverages; Campbell’s tomato juice; and snacking products in foodservice in Canada. The Snacks segment retails Pepperidge Farm cookies, crackers, fresh bakery, and frozen products, which include Goldfish crackers, Snyder’s of Hanover pretzels, Lance sandwich crackers, Cape Cod and Kettle Brand potato chips, Late July snacks, Snack Factory pretzel crisps, Pop Secret popcorn, and other snacking products. This segment is also involved in the retail business in Latin America. It sells its products through retail food chains, mass discounters and merchandisers, club stores, convenience stores, drug stores, and dollar stores, as well as e-commerce and other retail, commercial, and non-commercial establishments, and independent contractor distributors. The company was founded in 1869 and is headquartered in Camden, New Jersey.

About Utz Brands

Utz Brands, Inc. engages in manufacture, marketing, and distribution of snack foods. It offers a range of salty snacks, including salty snacks, including potato chips, tortilla chips, pretzels, cheese snacks, pork skins, veggie snacks, pub/party mixes, tortilla chips, salsa and dips, ready-to-eat popcorn, and other snacks under the Utz, Zapp’s, ON THE BORDER, Golden Flake, Boulder Canyon, Hawaiian, TORTIYAHS!, etc. The company sells its products to wholesale and other distributors, grocery stores, convenience and drug stores, discount stores, mass merchandisers, membership club stores, hard discounters, and specialty and e-commerce retailers. Utz Brands, Inc. was founded in 1921 and is headquartered in Hanover, Pennsylvania.