Critical Survey: Want Want China (OTCMKTS:WWNTY) vs. US Foods (NYSE:USFD)

US Foods (NYSE:USFD) and Want Want China (OTCMKTS:WWNTY) are both consumer staples companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, risk, profitability and valuation.

Earnings and Valuation

This table compares US Foods and Want Want China”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
US Foods	$39.42 billion	0.45	$676.00 million	$2.97	27.07
Want Want China	$3.23 billion	1.83	$600.91 million	N/A	N/A

US Foods has higher revenue and earnings than Want Want China.

Volatility & Risk

US Foods has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500. Comparatively, Want Want China has a beta of 0.17, meaning that its share price is 83% less volatile than the S&P 500.

Profitability

This table compares US Foods and Want Want China’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
US Foods	1.71%	19.37%	6.14%
Want Want China	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and price targets for US Foods and Want Want China, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
US Foods	0	3	10	0	2.77
Want Want China	0	0	0	0	0.00

US Foods presently has a consensus price target of $106.75, indicating a potential upside of 32.77%. Given US Foods’ stronger consensus rating and higher possible upside, equities analysts plainly believe US Foods is more favorable than Want Want China.

Institutional & Insider Ownership

98.8% of US Foods shares are owned by institutional investors. 0.7% of US Foods shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

US Foods beats Want Want China on 11 of the 12 factors compared between the two stocks.

About US Foods

US Foods Holding Corp., together with its subsidiaries, engages in marketing, sale, and distribution of fresh, frozen, and dry food and non-food products to foodservice customers in the United States. The company's customers include independently owned single and multi-unit restaurants, regional concepts, national restaurant chains, hospitals, nursing homes, hotels and motels, country clubs, government and military organizations, colleges and universities, and retail locations. The company was formerly known as USF Holding Corp. and changed its name to US Foods Holding Corp. in February 2016. US Foods Holding Corp. was incorporated in 2007 and is headquartered in Rosemont, Illinois.

About Want Want China

Want Want China Holdings Limited, an investment holding company, manufactures, distributes, and sells food and beverages. The company operates through four segments: Rice Crackers, Dairy Products and Beverages, Snack Foods, and Other Products. It offers sugar coated crackers, savoury crackers, fried crackers, and gift packs; flavored milk, room temperature yogurt, yogurt drinks, ready-to-drink coffee, juice and sports drinks, herbal tea, and milk powder; candies, popsicles, ball cakes and jellies, beans, nuts, and other snacks; and wine and other food products. The company also trades in food and beverages, and related activities online, as well as raw materials, machineries, etc.; sells chemical materials and plastic films/bags; manufactures and sells machineries and related services; manufactures dehydrating, deoxidating, preservative, and related products; manufactures and sells packaging materials, packing bags, carton boxes, and cans; provides consultancy, information, business, and network technology services; processes and sells rice and oil products; and manufactures and sells rice flour. In addition, it engages in the agricultural planting and management, and livestock and poultry breeding businesses. It serves customers through a sales and distribution network primarily in the People's Republic of China. The company also exports its products to North America, East Asia, South East Asia, and Europe. Want The company was founded in 1962 and is headquartered in Kowloon Bay, Hong Kong.