Head-To-Head Survey: Campbell Soup (NYSE:CPB) and Ingredion (INGR)

Ingredion (NYSE: INGR) and Campbell Soup (NYSE:CPB) are both consumer staples companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.

Profitability

This table compares Ingredion and Campbell Soup’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ingredion 8.63% 20.42% 9.61%
Campbell Soup 11.08% 56.88% 11.76%

Dividends

Ingredion pays an annual dividend of $2.40 per share and has a dividend yield of 1.9%. Campbell Soup pays an annual dividend of $1.40 per share and has a dividend yield of 3.0%. Ingredion pays out 33.9% of its earnings in the form of a dividend. Campbell Soup pays out 49.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Ingredion has raised its dividend for 2 consecutive years and Campbell Soup has raised its dividend for 5 consecutive years. Campbell Soup is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk & Volatility

Ingredion has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500. Comparatively, Campbell Soup has a beta of 0.32, indicating that its stock price is 68% less volatile than the S&P 500.

Institutional and Insider Ownership

87.6% of Ingredion shares are held by institutional investors. Comparatively, 47.8% of Campbell Soup shares are held by institutional investors. 1.9% of Ingredion shares are held by company insiders. Comparatively, 37.2% of Campbell Soup shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and target prices for Ingredion and Campbell Soup, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ingredion 0 1 3 0 2.75
Campbell Soup 4 8 1 0 1.77

Ingredion presently has a consensus price target of $142.00, indicating a potential upside of 9.68%. Campbell Soup has a consensus price target of $50.91, indicating a potential upside of 9.93%. Given Campbell Soup’s higher probable upside, analysts plainly believe Campbell Soup is more favorable than Ingredion.

Valuation and Earnings

This table compares Ingredion and Campbell Soup’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ingredion $6.18 billion 1.51 $519.00 million $7.07 18.31
Campbell Soup $7.89 billion 1.76 $887.00 million $2.86 16.19

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

Summary

Campbell Soup beats Ingredion on 10 of the 17 factors compared between the two stocks.

Ingredion Company Profile

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.

Campbell Soup Company Profile

Campbell Soup Company is a food company, which manufactures and markets food products. The Company’s segments include Americas Simple Meals and Beverages; Global Biscuits and Snacks, and Campbell Fresh. The Americas Simple Meals and Beverages segment includes the retail and food service channel businesses. The segment includes the products, such as Campbell’s condensed and ready-to-serve soups; Swanson broth and stocks; Prego pasta sauces; Pace Mexican sauces; Campbell’s gravies, pasta, beans and dinner sauces; Plum food and snacks; V8 juices and beverages, and Campbell’s tomato juice. The Global Biscuits and Snacks segment includes Pepperidge Farm cookies, crackers, bakery and frozen products; Arnott’s biscuits, and Kelsen cookies. The Campbell Fresh segment includes Bolthouse Farms fresh carrots, carrot ingredients, refrigerated beverages and refrigerated salad dressings; Garden Fresh Gourmet salsa, hummus, dips and tortilla chips, and the United States refrigerated soup business.

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