Sysco (NYSE:SYY) and Bridgford Foods (NASDAQ:BRID) Financial Review

Sysco (NYSE:SYY) and Bridgford Foods (NASDAQ:BRID) are both consumer staples companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, dividends, profitability and risk.

Profitability

This table compares Sysco and Bridgford Foods’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sysco	2.08%	103.57%	8.06%
Bridgford Foods	-5.60%	-11.02%	-8.77%

Insider & Institutional Ownership

83.4% of Sysco shares are held by institutional investors. Comparatively, 4.7% of Bridgford Foods shares are held by institutional investors. 0.6% of Sysco shares are held by company insiders. Comparatively, 80.7% of Bridgford Foods shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

Sysco has a beta of 0.66, suggesting that its stock price is 34% less volatile than the S&P 500. Comparatively, Bridgford Foods has a beta of -0.23, suggesting that its stock price is 123% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Sysco and Bridgford Foods, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sysco	0	7	9	0	2.56
Bridgford Foods	1	0	0	0	1.00

Sysco presently has a consensus price target of $88.15, indicating a potential upside of 15.54%. Given Sysco’s stronger consensus rating and higher probable upside, equities analysts clearly believe Sysco is more favorable than Bridgford Foods.

Valuation & Earnings

This table compares Sysco and Bridgford Foods”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sysco	$81.37 billion	0.45	$1.83 billion	$3.61	21.14
Bridgford Foods	$230.99 million	0.30	-$13.36 million	($1.44)	-5.36

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

Summary

Sysco beats Bridgford Foods on 13 of the 14 factors compared between the two stocks.

About Sysco

Sysco Corporation, through its subsidiaries, engages in the marketing and distribution of various food and related products to the foodservice or food-away-from-home industry in the United States, Canada, the United Kingdom, France, and internationally. It operates through U.S. Foodservice Operations, International Foodservice Operations, SYGMA, and Other segments. The company distributes frozen food, such as meat, seafood, fully prepared entrées, fruits, vegetables, and desserts; canned and dry food products; fresh meat and seafood products; dairy products; beverages; imported specialties; and fresh produce products. It also supplies various non-food items, including paper products comprising disposable napkins, plates, and cups; tableware consisting of glassware and silverware; cookware, such as pots, pans, and utensils; restaurant and kitchen equipment and supplies; and cleaning supplies. The company serves restaurants, hospitals and nursing facilities, schools and colleges, hotels and motels, industrial caterers, and other foodservice venues. Sysco Corporation was incorporated in 1969 and is headquartered in Houston, Texas.

About Bridgford Foods

Bridgford Foods Corporation, together with its subsidiaries, manufactures, markets, and distributes frozen and snack food products in the United States. It operates in two segments, Frozen Food Products and Snack Food Products. The company offers biscuits, bread dough items, roll dough items, and dry sausage and beef jerky products, as well as ready to eat sandwiches and non-refrigerated snack food products. It provides frozen food products to food service and retail customers through wholesalers, cooperatives, and distributors; and snack food items to supermarkets, mass merchandise, and convenience retail stores through customer-owned distribution centers, as well as a direct store delivery network. The company was founded in 1932 and is headquartered in Dallas, Texas. Bridgford Foods Corporation operates as a subsidiary of Bridgford Industries Incorporated.