Head to Head Contrast: Ingredion (INGR) vs. WhiteWave Foods (WWAV)

WhiteWave Foods (NYSE: WWAV) and Ingredion (NYSE:INGR) are both non-cyclical consumer goods & services companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, profitability, institutional ownership and analyst recommendations.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WhiteWave Foods 0 1 0 0 2.00
Ingredion 0 2 2 0 2.50

WhiteWave Foods presently has a consensus price target of $56.00, suggesting a potential downside of 0.43%. Ingredion has a consensus price target of $141.67, suggesting a potential upside of 12.93%. Given Ingredion’s stronger consensus rating and higher probable upside, analysts plainly believe Ingredion is more favorable than WhiteWave Foods.

Dividends

Ingredion pays an annual dividend of $2.40 per share and has a dividend yield of 1.9%. WhiteWave Foods does not pay a dividend. Ingredion pays out 36.1% of its earnings in the form of a dividend. WhiteWave Foods has raised its dividend for 4 consecutive years.

Institutional & Insider Ownership

80.6% of WhiteWave Foods shares are held by institutional investors. Comparatively, 83.9% of Ingredion shares are held by institutional investors. 6.2% of WhiteWave Foods shares are held by insiders. Comparatively, 1.9% of Ingredion shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility & Risk

WhiteWave Foods has a beta of 1.46, suggesting that its stock price is 46% more volatile than the S&P 500. Comparatively, Ingredion has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500.

Profitability

This table compares WhiteWave Foods and Ingredion’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
WhiteWave Foods 6.21% 17.51% 5.92%
Ingredion 8.35% 20.84% 9.53%

Earnings and Valuation

This table compares WhiteWave Foods and Ingredion’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
WhiteWave Foods N/A N/A N/A $1.11 50.67
Ingredion $5.80 billion 1.55 $1.05 billion $6.65 18.86

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

Summary

Ingredion beats WhiteWave Foods on 10 of the 14 factors compared between the two stocks.

About WhiteWave Foods

The WhiteWave Foods Company is a consumer packaged food and beverage company. The Company manufactures, markets, distributes and sells branded plant-based foods and beverages, coffee creamers and beverages, dairy products and organic produce. It operates through two segments: Americas Foods & Beverages and Europe Foods & Beverages. The Americas Foods & Beverages segment includes plant-based foods and beverages, including its Silk and So Delicious branded beverages, such as soymilk, almondmilk, coconutmilk and cashewmilk, ice cream and frozen products, and plant-based yogurts, and Vega plant-based products. The Europe Foods & Beverages segment includes plant-based foods and beverages, such as its Alpro and Provamel brand beverages using soy, almond, coconut, hazelnut, rice and oat and other plant-based ingredients, and plant-based alternatives to yogurt, culinary creams, desserts and margarine. It sells products primarily in North America, Europe and through a joint venture in China.

About Ingredion

Ingredion Incorporated is an ingredients solutions provider. The Company manufactures and sells sweetener, starches, nutrition ingredients and biomaterial solutions derived from the wet milling and processing of corn and other starch-based materials to a range of industries, both domestically and internationally. It operates through four segments: North America, South America, Asia Pacific, and Europe, Middle East and Africa (EMEA). It turns corn, tapioca, potatoes, and other vegetables and fruits into ingredients and biomaterials for the food, beverage, paper and corrugating, brewing and other industries. Its product line includes animal feed products and edible corn oil. Its sweetener products include glucose syrups, high maltose syrup, high fructose corn syrup (HFCS), caramel color, dextrose, polyols, maltodextrins and glucose and syrup solids. Its starch-based products include both food-grade and industrial starches, and biomaterials. It also offers specialty ingredients.

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