Financial Comparison: B&G Foods (BGS) and Kraft Heinz Foods (HNZ)

B&G Foods (NYSE: BGS) and Kraft Heinz Foods (NYSE:HNZ) are both mid-cap non-cyclical consumer goods & services companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.

Insider and Institutional Ownership

89.5% of B&G Foods shares are held by institutional investors. 2.1% of B&G Foods shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

B&G Foods pays an annual dividend of $1.86 per share and has a dividend yield of 5.1%. Kraft Heinz Foods does not pay a dividend. B&G Foods pays out 122.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. B&G Foods has increased its dividend for 6 consecutive years.

Profitability

This table compares B&G Foods and Kraft Heinz Foods’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
B&G Foods 6.29% 15.50% 3.92%
Kraft Heinz Foods N/A N/A N/A

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for B&G Foods and Kraft Heinz Foods, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
B&G Foods 0 2 6 0 2.75
Kraft Heinz Foods 0 2 1 0 2.33

B&G Foods currently has a consensus price target of $40.75, indicating a potential upside of 12.41%. Kraft Heinz Foods has a consensus price target of $17.65, indicating a potential downside of 4.95%. Given B&G Foods’ stronger consensus rating and higher possible upside, equities analysts plainly believe B&G Foods is more favorable than Kraft Heinz Foods.

Earnings & Valuation

This table compares B&G Foods and Kraft Heinz Foods’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
B&G Foods $1.39 billion 1.73 $109.42 million $1.52 23.85
Kraft Heinz Foods N/A N/A N/A $3.26 5.70

B&G Foods has higher revenue and earnings than Kraft Heinz Foods. Kraft Heinz Foods is trading at a lower price-to-earnings ratio than B&G Foods, indicating that it is currently the more affordable of the two stocks.

Summary

B&G Foods beats Kraft Heinz Foods on 11 of the 13 factors compared between the two stocks.

About B&G Foods

B&G Foods, Inc. (B&G Foods) is a holding company. The Company manufactures, sells and distributes a portfolio of shelf-stable and frozen foods across the United States, Canada and Puerto Rico. Its products include frozen and canned vegetables, hot cereals, fruit spreads, canned meats and beans, bagel chips, spices, seasonings, hot sauces, wine vinegar, maple syrup, molasses, salad dressings, pizza crusts, Mexican-style sauces, dry soups, taco shells and kits, salsas, pickles, peppers, tomato-based products, puffed corn and rice snacks, nut clusters and other specialty products. Its products are marketed under various brands, including Ac’cent, B&G, B&M, Baker’s Joy, Bear Creek Country Kitchens, Brer Rabbit, Canoleo, Cary’s, Cream of Rice, Cream of Wheat, Devonsheer, Don Pepino, Durkee, New York Style, Old London, Original Tings, Ortega, Spice Islands, Spring Tree, Static Guard, Sugar Twin, Tone’s, Trappey’s, TrueNorth, Underwood, Vermont Maid, Victoria, Weber and Wright’s.

About Kraft Heinz Foods

H. J. Heinz Company, together with its subsidiaries, is engaged in manufacturing and marketing a range of food products throughout the world. The Company’s principal products include ketchup, condiments and sauces, frozen food, soups, beans and pasta meals, infant nutrition and other food products. The Company’s products are manufactured and packaged to provide wholesome foods for consumers, as well as foodservice and institutional customers. The Company manufactures and contracts for the manufacture of its products from a variety of raw food materials. The Company operates in five segments: North American Consumer Products, Europe, Asia/Pacific, U.S. Foodservice and Rest of World. The Company owns or leases office space, warehouses, distribution centers and research and other facilities throughout the world.

Receive News & Ratings for B&G Foods Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for B&G Foods Inc. and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply