Head-To-Head Survey: BellRing Brands (NYSE:BRBR) and Lamb Weston (NYSE:LW)

BellRing Brands (NYSE:BRBR) and Lamb Weston (NYSE:LW) are both mid-cap consumer staples companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, dividends, analyst recommendations, valuation, profitability and earnings.

Earnings & Valuation

This table compares BellRing Brands and Lamb Weston”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BellRing Brands	$2.00 billion	1.91	$246.50 million	$1.75	17.33
Lamb Weston	$6.45 billion	1.34	$357.20 million	$2.09	29.64

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

Institutional and Insider Ownership

95.0% of BellRing Brands shares are owned by institutional investors. Comparatively, 89.6% of Lamb Weston shares are owned by institutional investors. 1.1% of BellRing Brands shares are owned by insiders. Comparatively, 0.3% of Lamb Weston shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and target prices for BellRing Brands and Lamb Weston, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BellRing Brands	1	3	14	0	2.72
Lamb Weston	1	8	4	1	2.36

BellRing Brands currently has a consensus price target of $61.56, indicating a potential upside of 102.94%. Lamb Weston has a consensus price target of $65.70, indicating a potential upside of 6.06%. Given BellRing Brands’ stronger consensus rating and higher probable upside, analysts clearly believe BellRing Brands is more favorable than Lamb Weston.

Risk & Volatility

BellRing Brands has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500. Comparatively, Lamb Weston has a beta of 0.51, indicating that its share price is 49% less volatile than the S&P 500.

Profitability

This table compares BellRing Brands and Lamb Weston’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BellRing Brands	10.26%	-123.43%	30.88%
Lamb Weston	4.56%	28.08%	6.47%

Summary

BellRing Brands beats Lamb Weston on 9 of the 15 factors compared between the two stocks.

About BellRing Brands

BellRing Brands, Inc., together with its subsidiaries, provides various nutrition products in the United States. The company offers ready-to-drink (RTD) protein shakes, other RTD beverages, powders, nutrition bars, and other products primarily under the Premier Protein and Dymatize brands. It distributes its products through club, food, drug, mass, eCommerce, specialty, and convenience channels. BellRing Brands, Inc. was incorporated in 2019 and is headquartered in Saint Louis, Missouri.

About Lamb Weston

Lamb Weston Holdings, Inc. produces, distributes, and markets frozen potato products worldwide. The company operates through four segments: Global, Foodservice, Retail, and Other. It offers frozen potatoes, commercial ingredients, and appetizers under the Lamb Weston brand, as well as under various customer labels. The company also provides its products under its owned or licensed brands, such as Grown in Idaho and Alexia, and other licensed brands, as well as under retailers' own brands. In addition, it engages in the vegetable and dairy businesses. The company sells its products through a network of internal sales personnel and independent brokers, agents, and distributors to chain restaurants, wholesale, grocery, mass merchants, club and specialty retailers, businesses, educational institutions, independent restaurants, regional chain restaurants, and convenience stores. Lamb Weston Holdings, Inc. was incorporated in 1950 and is headquartered in Eagle, Idaho.