Armanino Foods of Distinction (OTCMKTS:AMNF) vs. Conagra Brands (NYSE:CAG) Head to Head Analysis

Conagra Brands (NYSE:CAG) and Armanino Foods of Distinction (OTCMKTS:AMNF) are both consumer staples companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, valuation, profitability, earnings and risk.

Dividends

Conagra Brands pays an annual dividend of $1.40 per share and has a dividend yield of 8.7%. Armanino Foods of Distinction pays an annual dividend of $0.20 per share and has a dividend yield of 1.9%. Conagra Brands pays out -636.4% of its earnings in the form of a dividend. Armanino Foods of Distinction pays out 36.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Conagra Brands has increased its dividend for 5 consecutive years. Conagra Brands is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation and Earnings

This table compares Conagra Brands and Armanino Foods of Distinction”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Conagra Brands	$11.61 billion	0.67	$1.15 billion	($0.22)	-73.55
Armanino Foods of Distinction	$69.40 million	4.74	$14.61 million	$0.55	19.25

Conagra Brands has higher revenue and earnings than Armanino Foods of Distinction. Conagra Brands is trading at a lower price-to-earnings ratio than Armanino Foods of Distinction, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Conagra Brands has a beta of -0.02, indicating that its share price is 102% less volatile than the S&P 500. Comparatively, Armanino Foods of Distinction has a beta of 0.09, indicating that its share price is 91% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Conagra Brands and Armanino Foods of Distinction, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Conagra Brands	4	11	1	0	1.81
Armanino Foods of Distinction	0	1	2	0	2.67

Conagra Brands currently has a consensus target price of $18.71, suggesting a potential upside of 15.66%. Armanino Foods of Distinction has a consensus target price of $15.00, suggesting a potential upside of 41.66%. Given Armanino Foods of Distinction’s stronger consensus rating and higher probable upside, analysts clearly believe Armanino Foods of Distinction is more favorable than Conagra Brands.

Profitability

This table compares Conagra Brands and Armanino Foods of Distinction’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Conagra Brands	-0.87%	10.59%	4.46%
Armanino Foods of Distinction	23.65%	48.19%	33.53%

Insider and Institutional Ownership

83.8% of Conagra Brands shares are held by institutional investors. Comparatively, 0.1% of Armanino Foods of Distinction shares are held by institutional investors. 0.6% of Conagra Brands shares are held by insiders. Comparatively, 30.2% of Armanino Foods of Distinction shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Armanino Foods of Distinction beats Conagra Brands on 11 of the 17 factors compared between the two stocks.

About Conagra Brands

Conagra Brands, Inc., together with its subsidiaries, operates as a consumer packaged goods food company primarily in the United States. The company operates through Grocery & Snacks, Refrigerated & Frozen, International, and Foodservice segments. The Grocery & Snacks segment primarily offers shelf stable food products through various retail channels. The Refrigerated & Frozen segment provides temperature-controlled food products through various retail channels. The International segment offers food products in various temperature states through retail and foodservice channels outside of the United States. The Foodservice segment offers branded and customized food products, including meals, entrees, sauces, and various custom-manufactured culinary products packaged for restaurants and other foodservice establishments. The company sells its products under the Birds Eye, Marie Callender's, Duncan Hines, Healthy Choice, Slim Jim, Reddi-wip, Angie's, BOOMCHICKAPOP, Duke's, Earth Balance, Gardein, and Frontera brands. The company was incorporated in 1919 and is headquartered in Chicago, Illinois.

About Armanino Foods of Distinction

Armanino Foods of Distinction, Inc. produces and markets frozen food products in the United States. The company offers gourmet beef, Italian style beef and pork, and smoked turkey meatballs; grated parmesan and 3 cheese blend cheese; and various pesto, such as basil, artichoke, cilantro, dried tomato and garlic, roasted garlic, roasted red bell pepper, and southwest chipotle. It also provides frozen pasta, which includes beef cannelloni, cheese manicotti, cheese stuffed shells, cheese tortellini; pasta sheets, potato gnocchi, and tricolor cheese tortellini, as well as beef, butternut squash, four cheese, cheese and spinach, and wild mushroom ravioli; and various sauces, comprising creamy garlic, alfresco, Bolognese, chimichurri, harissa, and romesco. The company offers its products under the Armanino brand. It markets its products through a network of food brokers and sells to retail and foodservice distributors, club-type stores, and industrial accounts. The company was founded in 1978 and is based in Hayward, California.