Analyzing General Mills (NYSE:GIS) and Inventure Foods (SNAK)
General Mills (NYSE: GIS) and Inventure Foods (NASDAQ:SNAK) are both consumer staples companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, analyst recommendations, profitabiliy, institutional ownership, dividends and earnings.
Earnings & Valuation
This table compares General Mills and Inventure Foods’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|General Mills||$15.62 billion||2.01||$3.41 billion||$2.77||19.62|
|Inventure Foods||$261.45 million||0.28||$3.98 million||($2.20)||-1.72|
General Mills has higher revenue and earnings than Inventure Foods. Inventure Foods is trading at a lower price-to-earnings ratio than General Mills, indicating that it is currently the more affordable of the two stocks.
General Mills pays an annual dividend of $1.96 per share and has a dividend yield of 3.6%. Inventure Foods does not pay a dividend. General Mills pays out 70.8% of its earnings in the form of a dividend. General Mills has increased its dividend for 13 consecutive years.
This is a summary of current ratings and recommmendations for General Mills and Inventure Foods, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
General Mills presently has a consensus price target of $59.15, suggesting a potential upside of 8.84%. Inventure Foods has a consensus price target of $8.00, suggesting a potential upside of 111.64%. Given Inventure Foods’ stronger consensus rating and higher probable upside, analysts clearly believe Inventure Foods is more favorable than General Mills.
Risk and Volatility
General Mills has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500. Comparatively, Inventure Foods has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500.
This table compares General Mills and Inventure Foods’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
70.4% of General Mills shares are owned by institutional investors. Comparatively, 83.2% of Inventure Foods shares are owned by institutional investors. 1.3% of General Mills shares are owned by insiders. Comparatively, 6.4% of Inventure Foods shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
General Mills beats Inventure Foods on 10 of the 16 factors compared between the two stocks.
About General Mills
General Mills, Inc. is a manufacturer and marketer of branded consumer foods sold through retail stores. The Company is a supplier of branded and unbranded food products to the North American foodservice and commercial baking industries. The Company has three segments: U.S. Retail, International, and Convenience Stores and Foodservice. Its products are marketed under various brands, which include Annie’s and Betty Crocker. The Company’s U.S. Retail segment reflects business with a range of grocery stores, mass merchandisers, membership stores, natural food chains, drug, dollar and discount chains, and e-commerce grocery providers operating throughout the United States. The International segment consists of retail and foodservice businesses outside of the United States. The Convenience Stores and Foodservice segment’s product categories include ready-to-eat cereals, snacks, refrigerated yogurt, frozen meals, unbaked and fully baked frozen dough products, and baking mixes.
About Inventure Foods
Inventure Foods, Inc. is a marketer and manufacturer of healthy/natural and indulgent specialty snack food brands. The Company operates in two segments: frozen products and snack products. The frozen products segment produces frozen fruits, vegetables, beverages and frozen desserts for sale primarily to groceries, club stores and mass merchandisers. The snack products segment produces potato chips, kettle chips, potato crisps, potato skins, pellet snacks, sheeted dough products and extruded products for sale primarily to snack food distributors and retailers. The products sold under its snack products segment includes products considered part of the indulgent specialty snack food category, as well as products considered part of the healthy/natural food category. Its Frozen Products segment’s brands include Rader Farms and Jamba. Its Snack Products segment’s brands include Boulder Canyon, Nathan’s Famous, T.G.I. Friday’s, Poore Brothers, Bob’s Texas Style and Vidalia.
Receive News & Ratings for General Mills Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for General Mills Inc. and related companies with MarketBeat.com's FREE daily email newsletter.