AdvancePierre Foods Holdings (NASDAQ: APFH) and General Mills (NYSE:GIS) are both non-cyclical consumer goods & services companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, valuation, earnings, analyst recommendations, risk and institutional ownership.

Dividends

General Mills pays an annual dividend of $1.96 per share and has a dividend yield of 3.4%. AdvancePierre Foods Holdings 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.

Institutional & Insider Ownership

71.5% of General Mills shares are held by institutional investors. 1.3% of General Mills shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares AdvancePierre Foods Holdings and General Mills’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AdvancePierre Foods Holdings 7.00% N/A 8.96%
General Mills 10.61% 38.97% 8.47%

Earnings and Valuation

This table compares AdvancePierre Foods Holdings and General Mills’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
AdvancePierre Foods Holdings N/A N/A N/A N/A N/A
General Mills $15.62 billion 2.11 $3.41 billion $2.77 20.63

General Mills has higher revenue and earnings than AdvancePierre Foods Holdings.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for AdvancePierre Foods Holdings and General Mills, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AdvancePierre Foods Holdings 0 3 0 0 2.00
General Mills 4 11 1 0 1.81

AdvancePierre Foods Holdings presently has a consensus target price of $37.67, indicating a potential downside of 6.42%. General Mills has a consensus target price of $59.15, indicating a potential upside of 3.52%. Given General Mills’ higher possible upside, analysts plainly believe General Mills is more favorable than AdvancePierre Foods Holdings.

Summary

General Mills beats AdvancePierre Foods Holdings on 9 of the 12 factors compared between the two stocks.

About AdvancePierre Foods Holdings

AdvancePierre Foods Holdings, Inc. is a producer and distributor of ready-to-eat sandwiches, sandwich components and other entrees and snacks. The Company operates through four segments. The Foodservice segment’s portfolio of products includes breakfast sandwiches, peanut butter and jelly sandwiches, Philly steaks, fully cooked hamburger-patties, country-fried steak, stuffed entrees and chicken tenders. The Retail segment sells both branded and private label ready-to-eat sandwiches, such as grilled chicken sandwiches and stuffed pockets; sandwich components, such as chicken patties, and other entrees and snacks, such as stuffed chicken breasts. The Convenience segment sells customized ready-to-eat sandwiches, such as breakfast sandwiches and burgers; sandwich components, such as chicken patties, and other entrees and snacks, such as cinnamon dough bites. The Industrial segment supplies other food producers, such as packaged food companies under short-term co-manufacturing agreements.

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.

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