Sanderson Farms (NASDAQ:SAFM) versus Glanbia (GLAPY) Financial Review

Glanbia (OTCMKTS: GLAPY) and Sanderson Farms (NASDAQ:SAFM) 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 institutional ownership, analyst recommendations, earnings, valuation, risk, profitability and dividends.

Analyst Ratings

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This is a breakdown of recent ratings and target prices for Glanbia and Sanderson Farms, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Glanbia 0 0 0 0 N/A
Sanderson Farms 2 6 2 0 2.00

Sanderson Farms has a consensus price target of $126.33, indicating a potential upside of 11.30%. Given Sanderson Farms’ higher probable upside, analysts plainly believe Sanderson Farms is more favorable than Glanbia.

Volatility and Risk

Glanbia has a beta of -0.07, meaning that its share price is 107% less volatile than the S&P 500. Comparatively, Sanderson Farms has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500.

Valuation & Earnings

This table compares Glanbia and Sanderson Farms’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Glanbia $2.70 billion 1.86 $372.10 million $5.04 16.80
Sanderson Farms $3.34 billion 0.78 $279.74 million $12.30 9.23

Glanbia has higher earnings, but lower revenue than Sanderson Farms. Sanderson Farms is trading at a lower price-to-earnings ratio than Glanbia, indicating that it is currently the more affordable of the two stocks.

Dividends

Glanbia pays an annual dividend of $1.95 per share and has a dividend yield of 2.3%. Sanderson Farms pays an annual dividend of $1.28 per share and has a dividend yield of 1.1%. Glanbia pays out 38.7% of its earnings in the form of a dividend. Sanderson Farms pays out 10.4% 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.

Profitability

This table compares Glanbia and Sanderson Farms’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Glanbia N/A N/A N/A
Sanderson Farms 8.96% 19.30% 16.11%

Insider and Institutional Ownership

0.0% of Glanbia shares are held by institutional investors. 5.3% of Sanderson Farms shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Sanderson Farms beats Glanbia on 10 of the 15 factors compared between the two stocks.

Glanbia Company Profile

Glanbia plc operates as a nutrition company worldwide. It operates through three segments: Glanbia Performance Nutrition, Glanbia Nutritionals, and Glanbia Ireland Joint Venture. The Glanbia Performance Nutrition segment offers powders, bars and snacking food, and ready-to-drink beverages through various channels, including specialty retail, the Internet, and gyms, as well as food, drug, mass, and club channels. The Glanbia Nutritionals segment manufactures and sells cheese, dairy, and non-dairy nutritional ingredients, as well as vitamin and mineral premixes. The Glanbia Ireland Joint Venture segment produces a range of dairy ingredients and consumer products; and sells animal feed and fertilizers, as well as operates agricultural retail outlets. The company is also involved in the provision of property and land dealing, receivables management, management, property rental, business, financing, and agri trading services. It operates a portfolio of brands, including Optimum Nutrition, BSN, ABB, Isopure, Nutramino, thinkThin, Amazing Grass, and Body & Fit. Glanbia plc was founded in 1964 and is headquartered in Kilkenny, Ireland.

Sanderson Farms Company Profile

Sanderson Farms, Inc., an integrated poultry processing company, produces, processes, markets, and distributes fresh, frozen, and prepared chicken products in the United States. The company sells ice pack, chill pack, bulk pack, and frozen chicken in whole, cut-up, and boneless form primarily under the Sanderson Farms brand name to retailers, distributors, and casual dining operators in the southeastern, southwestern, northeastern, and western United States, as well as to customers who resell frozen chicken in the export markets. Its prepared chicken product line includes institutional and consumer packaged partially cooked or marinated chicken items for distributors and food service establishments. Sanderson Farms, Inc. was founded in 1947 and is headquartered in Laurel, Mississippi.

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