Head-To-Head Analysis: Sysco (NYSE:SYY) and Bunzl (OTCMKTS:BZLFY)

Sysco (NYSE:SYY) and Bunzl (OTCMKTS:BZLFY) are both large-cap consumer staples companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, institutional ownership, valuation, profitability, analyst recommendations, earnings and dividends.

Volatility & Risk

Sysco has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500. Comparatively, Bunzl has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500.

Insider & Institutional Ownership

83.4% of Sysco shares are held by institutional investors. Comparatively, 0.1% of Bunzl shares are held by institutional investors. 0.6% of Sysco shares are held by insiders. Comparatively, 1.0% of Bunzl shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

Sysco pays an annual dividend of $2.16 per share and has a dividend yield of 2.7%. Bunzl pays an annual dividend of $0.69 per share and has a dividend yield of 4.0%. Sysco pays out 59.8% of its earnings in the form of a dividend. Sysco has raised its dividend for 57 consecutive years.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Sysco and Bunzl, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sysco	0	7	9	0	2.56
Bunzl	0	4	1	0	2.20

Sysco currently has a consensus target price of $88.15, indicating a potential upside of 11.39%. Given Sysco’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Sysco is more favorable than Bunzl.

Profitability

This table compares Sysco and Bunzl’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sysco	2.08%	103.57%	8.06%
Bunzl	N/A	N/A	N/A

Earnings and Valuation

This table compares Sysco and Bunzl”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sysco	$81.37 billion	0.47	$1.83 billion	$3.61	21.92
Bunzl	$15.62 billion	0.71	$605.55 million	N/A	N/A

Sysco has higher revenue and earnings than Bunzl.

Summary

Sysco beats Bunzl on 10 of the 15 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 Bunzl

Bunzl plc operates as a distribution and services company in the North America, Continental Europe, the United Kingdom, Ireland, and internationally. The company offers food packaging, films, labels, cleaning and hygiene supplies, and personal protection equipment to grocery stores, supermarkets, and convenience stores. It also provides food packaging, disposable tableware, guest amenities, catering equipment, agricultural supplies, cleaning and hygiene products, and safety items to hotels, restaurants, contract caterers, food processors, commercial growers, and the leisure sector; and gloves, boots, hard hats, ear and eye protection, and other workwear, as well as cleaning and hygiene supplies, and asset protection products to industrial and construction, and ecommerce sectors. In addition, the company offers chemicals and hygiene paper to cleaning and facilities management companies, and industrial and public sector customers; gloves, masks, swabs, gowns, bandages, and other healthcare related equipment; and healthcare devices to hospitals, care homes, and other facilities serving the healthcare sector. Further, it provides packaging and other store supplies to retail chains, boutiques, department stores, home improvement chains, office supply companies, and related e-commerce sales channels. Bunzl plc was founded in 1854 and is headquartered in London, the United Kingdom.