Financial Comparison: General Mills (GIS) and Penford Corp (PENX)
General Mills (NYSE: GIS) and Penford Corp (NASDAQ:PENX) are both consumer staples companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, profitability, earnings, institutional ownership and valuation.
This is a summary of recent ratings and target prices for General Mills and Penford Corp, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
General Mills currently has a consensus price target of $56.27, indicating a potential upside of 8.18%. Given General Mills’ higher possible upside, research analysts clearly believe General Mills is more favorable than Penford Corp.
This table compares General Mills and Penford Corp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares General Mills and Penford Corp’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|General Mills||$15.48 billion||1.91||$3.32 billion||$2.79||18.64|
General Mills has higher revenue and earnings than Penford Corp.
General Mills pays an annual dividend of $1.96 per share and has a dividend yield of 3.8%. Penford Corp does not pay a dividend. General Mills pays out 70.3% of its earnings in the form of a dividend. General Mills has raised its dividend for 13 consecutive years.
Institutional & Insider Ownership
70.5% of General Mills shares are owned by institutional investors. 1.4% of General Mills 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.
General Mills beats Penford Corp on 10 of the 11 factors compared between the two stocks.
General Mills Company Profile
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.
Penford Corp Company Profile
Penford Corporation (Penford) is a developer, manufacturer and marketer of natural-based ingredient systems for food and industrial applications, including fuel grade ethanol. The Company has research and development capabilities, which are used in understanding the complex chemistry of carbohydrate-based materials and in developing applications to address customer needs. Penford operates in two business segments: Industrial Ingredients and Food Ingredients. Industrial Ingredients segment is a supplier of chemically modified starches to the paper and packaging industries. Industrial Ingredients also produces food grade corn starch for sale by the Company’s Food Ingredients business. Food Ingredients segment is a developer and manufacturer of specialty starches and dextrins to the food manufacturing and food service industries. This business is engaged is in leveraging the inherent characteristics from potato, corn, tapioca and rice to help improve its customers’ product performance.
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