Lancaster Colony Corporation (NASDAQ: LANC) and The Hain Celestial Group (NASDAQ:HAIN) are both mid-cap consumer staples companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, earnings and analyst recommendations.
Volatility & Risk
Lancaster Colony Corporation has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500. Comparatively, The Hain Celestial Group has a beta of 1.28, meaning that its stock price is 28% more volatile than the S&P 500.
This table compares Lancaster Colony Corporation and The Hain Celestial Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Lancaster Colony Corporation||9.82%||23.80%||19.01%|
|The Hain Celestial Group||-0.75%||-1.09%||-0.61%|
Valuation and Earnings
This table compares Lancaster Colony Corporation and The Hain Celestial Group’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Lancaster Colony Corporation||$1.20 billion||2.66||$221.45 million||$4.29||27.15|
|The Hain Celestial Group||$2.87 billion||1.53||$265.06 million||N/A||N/A|
The Hain Celestial Group has higher revenue and earnings than Lancaster Colony Corporation.
This is a breakdown of current recommendations and price targets for Lancaster Colony Corporation and The Hain Celestial Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Lancaster Colony Corporation||0||1||4||0||2.80|
|The Hain Celestial Group||0||10||5||0||2.33|
Lancaster Colony Corporation presently has a consensus price target of $154.67, indicating a potential upside of 32.80%. The Hain Celestial Group has a consensus price target of $42.29, indicating a potential downside of 0.26%. Given Lancaster Colony Corporation’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Lancaster Colony Corporation is more favorable than The Hain Celestial Group.
Lancaster Colony Corporation pays an annual dividend of $2.20 per share and has a dividend yield of 1.9%. The Hain Celestial Group does not pay a dividend. Lancaster Colony Corporation pays out 51.3% of its earnings in the form of a dividend. The Hain Celestial Group has increased its dividend for 54 consecutive years.
Insider & Institutional Ownership
49.2% of Lancaster Colony Corporation shares are held by institutional investors. Comparatively, 85.1% of The Hain Celestial Group shares are held by institutional investors. 32.1% of Lancaster Colony Corporation shares are held by insiders. Comparatively, 3.1% of The Hain Celestial Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Lancaster Colony Corporation beats The Hain Celestial Group on 8 of the 15 factors compared between the two stocks.
Lancaster Colony Corporation Company Profile
Lancaster Colony Corporation is a manufacturer and marketer of specialty food products for the retail and foodservice channels. The Company’s food products include Salad dressings and sauces, Vegetable dips and fruit dips, Frozen garlic breads, Frozen Parkerhouse style yeast rolls and dinner rolls, Premium dry egg noodles, Frozen specialty noodles, Croutons and salad toppings, Flatbread wraps and pizza crusts, and Caviar. Its brands include Marzetti, Marzetti Simply Dressed, Cardini’s, Girard’s, Katherine’s Kitchen, New York BRAND Bakery, Mamma Bella’s, Sister Schubert’s, Mary B’s, Inn Maid, Amish Kitchen, Reames, Aunt Vi’s, Flatout and Romanoff. It manufactures and sells other products pursuant to brand license agreements, including Olive Garden dressing, Jack Daniel’s mustards and Hungry Girl flatbreads. A portion of its sales are dressing packets, frozen specialty noodles, pasta and flatbreads sold to industrial customers for use as ingredients or components in their products.
The Hain Celestial Group Company Profile
The Hain Celestial Group, Inc. is an organic and natural products company. The Company and its subsidiaries manufacture, market, distribute and sell organic and natural products under brand names which are sold as better-for-you products. The Company’s segments include United States, United Kingdom, Hain Pure Protein and Rest of World. Its Rest of World segment includes Canada and Europe. The Company’s brand names include Almond Dream, Arrowhead Mills, Bearitos, BluePrint, Celestial Seasonings, Cully & Sully, Danival, DeBoles, Earth’s Best, Ella’s Kitchen, Empire, Europe’s Best, Farmhouse Fare, Frank Cooper’s, FreeBird, Gale’s, Garden of Eatin’, GG UniqueFiber, Hain Pure Foods, Hartley’s, Health Valley, Imagine, Johnson’s Juice Co., Joya, Kosher Valley, Lima, The Greek Gods, Tilda, Walnut Acres, WestSoy, Yves Veggie Cuisine and Yorkshire Provender. Its personal care products are marketed under the Alba Botanica, Avalon Organics, Earth’s Best, JASON, Live Clean and Queen Helene brands.
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