Head to Head Survey: Danone (OTCMKTS:DANOY) and US Foods (NYSE:USFD)

Danone (OTCMKTS:DANOY) and US Foods (NYSE:USFD) are both large-cap consumer staples companies, but which is the better business? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, dividends, valuation, profitability and analyst recommendations.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Danone	$30.86 billion	1.59	$2.06 billion	N/A	N/A
US Foods	$39.42 billion	0.45	$676.00 million	$2.97	27.07

Danone has higher earnings, but lower revenue than US Foods.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Danone and US Foods, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Danone	1	2	2	1	2.50
US Foods	0	3	10	0	2.77

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

Profitability

This table compares Danone and US Foods’ net margins, return on equity and return on assets.

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

Insider and Institutional Ownership

0.1% of Danone shares are held by institutional investors. Comparatively, 98.8% of US Foods shares are held by institutional investors. 1.0% of Danone shares are held by insiders. Comparatively, 0.7% of US Foods shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

Danone has a beta of 0.23, suggesting that its share price is 77% less volatile than the S&P 500. Comparatively, US Foods has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500.

Summary

US Foods beats Danone on 9 of the 13 factors compared between the two stocks.

About Danone

Danone S.A. operates in the food and beverage industry in Europe, Ukraine, North America, China, North Asia, the Oceania, Latin America, rest of Asia, Africa, Turkey, the Middle East, and the Commonwealth of Independent States. The company operates through Essential Dairy & Plant-Based, Specialized Nutrition, and Waters segments. It produces and distributes yogurts, dairy products, coffee creamers and drinks, beverages, plant-based products, ice creams, frozen desserts, and cheese products under the Actimel, Activia, Alpro, Aptamil, Danette, Danio, Danonino, evian, Nutricia, Nutrilon, Volvic, Danone, Light & Fit, Oikos, YoPRO, International Delight, SToK, Silk, Follow Your Heart, and So Delicious. The company also provides specialized nutrition, including formulas and complementary feeding for babies and young children; and special medical purposes food for children and adults under the Aptamil, Nutrilon, Gallia, Cow & Gate, Bebelac, and Blédina brands. In addition, it offers tube feeding products under the Nutrison name; and oral nutritional supplements under the Fortimel and NutriDrink names. Further, the company provides mineral waters from natural sources, waters infused with natural fruit extracts, fruit juices, and vitamins under the evian, Volvic, AQUA, Mizone, Bonafont, Salus, Hayat, Sirma, Font Vella, Lanjarón, and Zywiec Zdroj brands. It distributes its products through retail chains and traditional market outlets; convenience stores; hotels, restaurants, and coffee outlets; hospitals, clinics, and pharmacies; and e-commerce channels. The company was formerly known as Groupe Danone and changed its name to Danone S.A. in April 2009. Danone S.A. was incorporated in 1899 and is headquartered in Paris, France.

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.