Annies (NYSE: BNNY) and MGP Ingredients (NASDAQ:MGPI) are both small-cap food processing – nec companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, risk, earnings and dividends.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Annies and MGP Ingredients, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Annies 0 0 0 0 N/A
MGP Ingredients 0 1 2 0 2.67

MGP Ingredients has a consensus price target of $66.00, suggesting a potential downside of 11.42%. Given MGP Ingredients’ higher possible upside, analysts clearly believe MGP Ingredients is more favorable than Annies.

Dividends

MGP Ingredients pays an annual dividend of $0.16 per share and has a dividend yield of 0.2%. Annies does not pay a dividend. MGP Ingredients pays out 7.4% of its earnings in the form of a dividend.

Profitability

This table compares Annies and MGP Ingredients’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Annies N/A N/A N/A
MGP Ingredients 10.56% 18.70% 12.39%

Valuation and Earnings

This table compares Annies and MGP Ingredients’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Annies N/A N/A N/A $0.68 67.60
MGP Ingredients $328.08 million 3.80 $31.18 million $2.17 34.34

MGP Ingredients has higher revenue and earnings than Annies. MGP Ingredients is trading at a lower price-to-earnings ratio than Annies, indicating that it is currently the more affordable of the two stocks.

Summary

MGP Ingredients beats Annies on 8 of the 9 factors compared between the two stocks.

Annies Company Profile

Annie’s, Inc. is a natural and organic food company. The Company’s product lines include natural products, products made with organic ingredients and certified organic products. The Company sells its products in three primary product categories: meals, snacks, and dressings, condiments and other. Its products appeal to health-conscious consumers who seek to avoid artificial flavors, synthetic colors and preservatives that are used in many conventional packaged foods. The Company offers over 145 products and these products are present in over 35,000 retail locations in the United States and Canada. Products under the Company’s meals category include Macaroni and Cheese, Canned Meals, Pasta Meals, Skillet Meals, Frozen Pizza and Frozen Entrees. Its snack products include Cheddar Bunnies, Bunny Grahams, Fruit Snacks, Snack Mix, Pretzels, Granola Bars and Graham Crackers.

MGP Ingredients Company Profile

MGP Ingredients, Inc. is a producer and supplier of distilled spirits, and specialty wheat protein and starch food ingredients. The Company’s distilled spirits include bourbon and rye whiskeys, and grain neutral spirits, including vodka and gin. The Company’s segments include distillery products and ingredient solutions. The distillery products segment consists of food grade alcohol and distillery co-products, such as distillers feed and fuel grade alcohol. The ingredient solutions segment consists of specialty starches and proteins, commodity starches and commodity proteins. The distillery products segment also includes warehouse services, including barrel put away, barrel storage, and barrel retrieval services. It is also a producer of industrial alcohol for use in both food and non-food applications. The Company’s distillery products are derived from corn and other grains (including rye, barley, wheat, barley malt and milo), and its ingredient products are derived from wheat flour.

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