Reviewing Blue Apron (APRN) and Kellogg (K)

Blue Apron (NYSE: APRN) and Kellogg (NYSE:K) are both consumer staples companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, institutional ownership, valuation and profitability.

Profitability

This table compares Blue Apron and Kellogg’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Blue Apron -21.67% N/A -51.87%
Kellogg 6.15% 73.92% 9.27%

Analyst Ratings

This is a breakdown of current recommendations for Blue Apron and Kellogg, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Blue Apron 2 9 4 0 2.13
Kellogg 2 7 3 0 2.08

Blue Apron presently has a consensus target price of $7.12, indicating a potential upside of 127.33%. Kellogg has a consensus target price of $71.50, indicating a potential upside of 10.12%. Given Blue Apron’s stronger consensus rating and higher possible upside, equities analysts clearly believe Blue Apron is more favorable than Kellogg.

Institutional and Insider Ownership

92.5% of Blue Apron shares are held by institutional investors. Comparatively, 86.9% of Kellogg shares are held by institutional investors. 1.3% of Kellogg shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Blue Apron and Kellogg’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Blue Apron $795.41 million 0.12 -$54.88 million N/A N/A
Kellogg $13.01 billion 1.72 $694.00 million $2.24 28.99

Kellogg has higher revenue and earnings than Blue Apron.

Dividends

Kellogg pays an annual dividend of $2.16 per share and has a dividend yield of 3.3%. Blue Apron does not pay a dividend. Kellogg pays out 96.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kellogg has increased its dividend for 12 consecutive years.

Summary

Kellogg beats Blue Apron on 9 of the 14 factors compared between the two stocks.

About Blue Apron

Blue Apron Holdings, Inc. is a holding company. The Company is focused on providing recipes and fresh ingredients for making home cooking accessible. The Company offers under a novel business model in which it source, process, store and package meal ingredients and ship them directly to consumers. The Company’s core products include Meals and Wine. Meals product, which offers two meal plans, such as two person plan and family plan. Two person plan, which includes three recipes per week (chosen from six options), each of which serves two people and shipping is free. The Company provides original recipes with the pre-portioned ingredients to complement tastes and lifestyles of college graduates, young couples, families, singles, and empty nesters.

About Kellogg

Kellogg Company is a manufacturer and marketer of ready-to-eat cereal and convenience foods. The Company’s principal products are ready-to-eat cereals and convenience foods, such as cookies, crackers, savory snacks, toaster pastries, cereal bars, fruit-flavored snacks, frozen waffles and veggie foods. Its segments include U.S. Morning Foods, which includes cereal, toaster pastries, health and wellness bars, and beverages; U.S. Snacks, which includes cookies, crackers, cereal bars, savory snacks and fruit-flavored snacks; U.S. Specialty, which represents food away from home channels, including food service, convenience, vending, Girl Scouts and food manufacturing; North America Other, which includes the U.S. Frozen, Kashi and Canada operating segments; Europe, which consists of European countries; Latin America, which consists of Central and South America and includes Mexico, and Asia Pacific, which consists of Sub-Saharan Africa, Australia and other Asian and Pacific markets.

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