Financial Comparison: Tate & Lyle (TATYY) versus Mondelez International (MDLZ)

Tate & Lyle (OTCMKTS: TATYY) and Mondelez International (NASDAQ:MDLZ) are both consumer staples companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, earnings, analyst recommendations, risk, profitability and valuation.

Valuation and Earnings

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This table compares Tate & Lyle and Mondelez International’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tate & Lyle $3.73 billion 1.00 $334.66 million $2.55 12.62
Mondelez International $25.90 billion 2.41 $2.92 billion $2.14 19.62

Mondelez International has higher revenue and earnings than Tate & Lyle. Tate & Lyle is trading at a lower price-to-earnings ratio than Mondelez International, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Tate & Lyle and Mondelez International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tate & Lyle N/A N/A N/A
Mondelez International 11.28% 12.72% 5.25%

Risk and Volatility

Tate & Lyle has a beta of 0.4, meaning that its stock price is 60% less volatile than the S&P 500. Comparatively, Mondelez International has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500.

Dividends

Tate & Lyle pays an annual dividend of $1.41 per share and has a dividend yield of 4.4%. Mondelez International pays an annual dividend of $0.88 per share and has a dividend yield of 2.1%. Tate & Lyle pays out 55.3% of its earnings in the form of a dividend. Mondelez International pays out 41.1% 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.

Analyst Ratings

This is a breakdown of current ratings and target prices for Tate & Lyle and Mondelez International, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tate & Lyle 0 2 3 0 2.60
Mondelez International 0 1 13 1 3.00

Mondelez International has a consensus price target of $50.67, suggesting a potential upside of 20.66%. Given Mondelez International’s stronger consensus rating and higher possible upside, analysts clearly believe Mondelez International is more favorable than Tate & Lyle.

Institutional & Insider Ownership

0.3% of Tate & Lyle shares are owned by institutional investors. Comparatively, 75.9% of Mondelez International shares are owned by institutional investors. 2.0% of Mondelez International shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Mondelez International beats Tate & Lyle on 15 of the 17 factors compared between the two stocks.

Tate & Lyle Company Profile

Tate & Lyle PLC, together with its subsidiaries, provides ingredients and solutions to the food, beverage, and other industries in the United States, the United Kingdom, other European countries, and internationally. It operates through two segments, Speciality Food Ingredients and Bulk Ingredients. The company offers texturants, including corn-based starches, clean-label starches, and stabilizer systems; sweeteners, such as high intensity sweeteners and specialty sweeteners; and health and wellness ingredients comprising dietary fibers and oat proteins. In addition, the company is involved in blending, in-house treasury, pension, and reinsurance businesses; citric acid and sucralose production; and research and development and in-house financing businesses, as well as the provision of acidulants and grains. Tate & Lyle PLC was incorporated in 1903 and is headquartered in London, the United Kingdom.

Mondelez International Company Profile

Mondelez International, Inc., through its subsidiaries, manufactures and markets snack food and beverage products worldwide. It offers biscuits, including cookies, crackers, and salted snacks; chocolates; gums and candies; coffee and powdered beverages; and cheese and grocery products. The company's primary snack brand portfolio includes Nabisco, Oreo, LU, and belVita biscuits; Cadbury, Milka, Cadbury Dairy Milk, and Toblerone chocolates; Trident gums; Halls candies; and Tang powdered beverages. It sells its products to supermarket chains, wholesalers, supercenters, club stores, mass merchandisers, distributors, convenience stores, gasoline stations, drug stores, value stores, and other retail food outlets through direct store delivery, company-owned and satellite warehouses, distribution centers, and other facilities, as well as through independent sales offices and agents, and e-commerce platforms. The company was formerly known as Kraft Foods Inc. and changed its name to Mondelez International, Inc. in October 2012. Mondelez International, Inc. was founded in 2000 and is based in Deerfield, Illinois.

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