Financial Review: Universal (UVV) & CHS Inc 8% Preferred Shares (CHSCP)
Universal (NYSE:UVV) and CHS Inc 8% Preferred Shares (NASDAQ:CHSCP) are both consumer staples companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, institutional ownership, profitability, dividends, analyst recommendations and valuation.
Earnings and Valuation
This table compares Universal and CHS Inc 8% Preferred Shares’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Universal||$2.03 billion||0.82||$105.66 million||N/A||N/A|
|CHS Inc 8% Preferred Shares||$31.93 billion||N/A||$127.85 million||N/A||N/A|
Volatility and Risk
Universal has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500. Comparatively, CHS Inc 8% Preferred Shares has a beta of 0.21, indicating that its stock price is 79% less volatile than the S&P 500.
This is a summary of recent ratings and target prices for Universal and CHS Inc 8% Preferred Shares, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|CHS Inc 8% Preferred Shares||0||0||0||0||N/A|
This table compares Universal and CHS Inc 8% Preferred Shares’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|CHS Inc 8% Preferred Shares||1.65%||9.12%||3.14%|
Universal pays an annual dividend of $3.00 per share and has a dividend yield of 4.5%. CHS Inc 8% Preferred Shares pays an annual dividend of $1.00 per share and has a dividend yield of 3.6%. Universal has increased its dividend for 46 consecutive years. Universal is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Insider & Institutional Ownership
88.0% of Universal shares are held by institutional investors. 2.5% of Universal shares are held by company insiders. Comparatively, 2.3% of CHS Inc 8% Preferred Shares shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Universal beats CHS Inc 8% Preferred Shares on 7 of the 10 factors compared between the two stocks.
Universal Corporation engages in the supply of leaf tobacco products worldwide. The company operates through North America, South America, Africa, Europe, Asia, Dark Air-Cured, Oriental, and Special Services segments. It is involved in procuring, financing, processing, packing, storing, and shipping leaf tobacco for sale to manufacturers of consumer tobacco products. The company contracts, purchases, processes, and sells flue-cured, burley, and oriental tobaccos that are primarily used in the manufacture of cigarettes; and dark air-cured tobaccos principally used in the manufacture of cigars, pipe tobacco, and smokeless tobacco products. It also provides value-added services, including blending, chemical, and physical testing of tobacco; service cutting for various manufacturers; manufacturing reconstituted leaf tobacco; just-in-time inventory management services; electronic nicotine delivery systems; e-liquid testing services; and smoke testing services for customers. In addition, the company offers testing services for crop protection agents and tobacco constituents in seed, leaf, and finished products, including e-cigarette liquids and vapors; and analytical services that include chemical compound testing in finished tobacco products and mainstream smoke, as well as engages in the research and development growth trials with various partners for non-tobacco agriproducts production, such as vanilla and stevia. Further, it produces and sells dehydrated and juiced fruit and vegetable products, as well as provides water pipe style leaf tobacco; and recycles waste materials from tobacco production. The company was founded in 1886 and is headquartered in Richmond, Virginia.
About CHS Inc 8% Preferred Shares
CHS Inc., an integrated agricultural company, provides grains, foods, and energy resources to businesses and consumers worldwide. The company operates through four segments: Energy, Ag, Nitrogen Production, and Foods. It engages in the operation of petroleum refineries and pipelines; supply, marketing, and distribution of refined fuels, including gasoline, diesel fuel, and other energy products; blending, sale, and distribution of lubricants; and the supply of propane and other natural gas liquids. The company also processes and sells crude oil into refined petroleum products under the Cenex brand name to member cooperatives and other independent retailers through a network of approximately 1,500 sites; and provides transportation services. In addition, it is involved in the purchase or resale of grains and oilseeds; and manufacture and sale of seeds, crop nutrients, crop protection products, animal feed, animal health products, refined fuels, and propane, as well as refined oils, meal, soy flour, and processed sunflower products. Further, the company produces and sells nitrogen-based products, including methanol, UAN and urea, and related products; and manufactures, packages, and distributes vegetable oil-based products, such as packaged frying oils, margarine, mayonnaise, salad dressings, sauces, and other food products. Additionally, it offers open account financing services; cooperative associations with various loans that meet commercial agriculture needs; loans to individual producers; commodity risk management services to agricultural producers and commercial agribusinesses; and property and casualty insurance products, surety bonds, safety resources, employment services, and group benefits to agribusiness, construction, energy, and processing industries. The company also engages in the wheat milling activities. CHS Inc. is headquartered in Inver Grove Heights, Minnesota.
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