Head-To-Head Survey: Armanino Foods of Distinction (OTCMKTS:AMNF) versus Tyson Foods (NYSE:TSN)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Armanino Foods of Distinction	23.74%	46.28%	35.01%
Tyson Foods	1.03%	7.77%	3.94%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Armanino Foods of Distinction	$76.10 million	5.00	$18.80 million	$0.63	19.67
Tyson Foods	$54.44 billion	0.38	$474.00 million	$1.62	36.59

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

Institutional and Insider Ownership

0.1% of Armanino Foods of Distinction shares are owned by institutional investors. Comparatively, 67.0% of Tyson Foods shares are owned by institutional investors. 30.2% of Armanino Foods of Distinction shares are owned by company insiders. Comparatively, 2.1% of Tyson Foods shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

Armanino Foods of Distinction pays an annual dividend of $0.20 per share and has a dividend yield of 1.6%. Tyson Foods pays an annual dividend of $2.04 per share and has a dividend yield of 3.4%. Armanino Foods of Distinction pays out 31.7% of its earnings in the form of a dividend. Tyson Foods pays out 125.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Tyson Foods has increased its dividend for 13 consecutive years. Tyson Foods is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Armanino Foods of Distinction and Tyson Foods, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Armanino Foods of Distinction	0	1	1	1	3.00
Tyson Foods	1	6	5	0	2.33

Armanino Foods of Distinction presently has a consensus price target of $15.00, suggesting a potential upside of 21.07%. Tyson Foods has a consensus price target of $66.78, suggesting a potential upside of 12.66%. Given Armanino Foods of Distinction’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Armanino Foods of Distinction is more favorable than Tyson Foods.

Volatility and Risk

Armanino Foods of Distinction has a beta of 0.09, indicating that its share price is 91% less volatile than the S&P 500. Comparatively, Tyson Foods has a beta of 0.38, indicating that its share price is 62% less volatile than the S&P 500.

About Armanino Foods of Distinction

Armanino Foods of Distinction, Inc. produces and markets specialty Italian foods, with a focus on frozen products for retail, foodservice and industrial customers. Its offerings include pesto, filled pasta, sauces, meatballs and other Italian-inspired foods. The company sells its products through distributors and serves customers in the United States and international markets. Its business traces back to its establishment in 1986.

About Tyson Foods

Tyson Foods, Inc. is a food company focused on protein production and prepared foods. Its businesses include chicken, beef and pork products, as well as ready-to-eat and other prepared foods sold to retail customers, food-service operators and industrial buyers. The company’s products are marketed under brands including Tyson, Jimmy Dean, Hillshire Farm, Ball Park and Wright. Offerings range from fresh and frozen meat to deli products, sausages, bacon and prepared meals. Founded in 1935 by John W. Tyson, the company is headquartered in Springdale, Arkansas.