MGP Ingredients (NASDAQ: MGPI) and B&G Foods (NYSE:BGS) are both consumer staples companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, analyst recommendations, earnings and profitability.
This table compares MGP Ingredients and B&G Foods’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
97.7% of MGP Ingredients shares are owned by institutional investors. Comparatively, 88.7% of B&G Foods shares are owned by institutional investors. 23.5% of MGP Ingredients shares are owned by company insiders. Comparatively, 2.2% of B&G Foods shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
MGP Ingredients pays an annual dividend of $0.16 per share and has a dividend yield of 0.3%. B&G Foods pays an annual dividend of $1.86 per share and has a dividend yield of 5.7%. MGP Ingredients pays out 8.4% of its earnings in the form of a dividend. B&G Foods pays out 122.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. B&G Foods has raised its dividend for 6 consecutive years. B&G Foods is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings and Valuation
This table compares MGP Ingredients and B&G Foods’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|MGP Ingredients||$333.96 million||2.96||$51.47 million||$1.90||31.14|
|B&G Foods||$1.52 billion||1.43||$317.39 million||$1.52||21.45|
B&G Foods has higher revenue and earnings than MGP Ingredients. B&G Foods is trading at a lower price-to-earnings ratio than MGP Ingredients, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
MGP Ingredients has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500. Comparatively, B&G Foods has a beta of 0.09, suggesting that its stock price is 91% less volatile than the S&P 500.
This is a summary of recent ratings for MGP Ingredients and B&G Foods, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
MGP Ingredients currently has a consensus target price of $66.00, suggesting a potential upside of 11.54%. B&G Foods has a consensus target price of $42.31, suggesting a potential upside of 29.79%. Given B&G Foods’ higher possible upside, analysts plainly believe B&G Foods is more favorable than MGP Ingredients.
MGP Ingredients beats B&G Foods on 11 of the 17 factors compared between the two stocks.
About MGP Ingredients
MGP Ingredients, Inc. is a producer and supplier of distilled spirits, and specialty wheat protein and starch food ingredients. The Company’s distilled spirits include bourbon and rye whiskeys, and grain neutral spirits, including vodka and gin. The Company’s segments include distillery products and ingredient solutions. The distillery products segment consists of food grade alcohol and distillery co-products, such as distillers feed and fuel grade alcohol. The ingredient solutions segment consists of specialty starches and proteins, commodity starches and commodity proteins. The distillery products segment also includes warehouse services, including barrel put away, barrel storage, and barrel retrieval services. It is also a producer of industrial alcohol for use in both food and non-food applications. The Company’s distillery products are derived from corn and other grains (including rye, barley, wheat, barley malt and milo), and its ingredient products are derived from wheat flour.
About B&G Foods
B&G Foods, Inc. (B&G Foods) is a holding company. The Company manufactures, sells and distributes a portfolio of shelf-stable and frozen foods across the United States, Canada and Puerto Rico. Its products include frozen and canned vegetables, hot cereals, fruit spreads, canned meats and beans, bagel chips, spices, seasonings, hot sauces, wine vinegar, maple syrup, molasses, salad dressings, pizza crusts, Mexican-style sauces, dry soups, taco shells and kits, salsas, pickles, peppers, tomato-based products, puffed corn and rice snacks, nut clusters and other specialty products. Its products are marketed under various brands, including Ac’cent, B&G, B&M, Baker’s Joy, Bear Creek Country Kitchens, Brer Rabbit, Canoleo, Cary’s, Cream of Rice, Cream of Wheat, Devonsheer, Don Pepino, Durkee, New York Style, Old London, Original Tings, Ortega, Spice Islands, Spring Tree, Static Guard, Sugar Twin, Tone’s, Trappey’s, TrueNorth, Underwood, Vermont Maid, Victoria, Weber and Wright’s.
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