Head-To-Head Survey: The J.M. Smucker (SJM) and Landec (LNDC)

Landec (NASDAQ: LNDC) and The J.M. Smucker (NYSE:SJM) are both consumer staples companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, institutional ownership, profitability and risk.

Analyst Ratings

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This is a summary of current ratings for Landec and The J.M. Smucker, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Landec 0 1 2 0 2.67
The J.M. Smucker 4 5 6 0 2.13

Landec currently has a consensus price target of $15.50, indicating a potential upside of 12.73%. The J.M. Smucker has a consensus price target of $130.17, indicating a potential upside of 13.27%. Given The J.M. Smucker’s higher probable upside, analysts plainly believe The J.M. Smucker is more favorable than Landec.

Risk & Volatility

Landec has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500. Comparatively, The J.M. Smucker has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500.

Dividends

The J.M. Smucker pays an annual dividend of $3.12 per share and has a dividend yield of 2.7%. Landec does not pay a dividend. The J.M. Smucker pays out 40.4% of its earnings in the form of a dividend. The J.M. Smucker has increased its dividend for 16 consecutive years.

Institutional & Insider Ownership

93.8% of Landec shares are owned by institutional investors. Comparatively, 77.6% of The J.M. Smucker shares are owned by institutional investors. 4.6% of Landec shares are owned by company insiders. Comparatively, 3.5% of The J.M. Smucker shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Landec and The J.M. Smucker’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Landec 3.95% 3.17% 2.01%
The J.M. Smucker 17.16% 12.46% 5.72%

Valuation & Earnings

This table compares Landec and The J.M. Smucker’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Landec $532.26 million 0.71 $10.59 million $0.38 36.18
The J.M. Smucker $7.39 billion 1.77 $592.30 million $7.72 14.89

The J.M. Smucker has higher revenue and earnings than Landec. The J.M. Smucker is trading at a lower price-to-earnings ratio than Landec, indicating that it is currently the more affordable of the two stocks.

Summary

The J.M. Smucker beats Landec on 11 of the 17 factors compared between the two stocks.

Landec Company Profile

Landec Corporation, together with its subsidiaries, designs, develops, manufactures, and sells differentiated health and wellness products for food and biomaterials markets. It operates through three segments: Packaged Fresh Vegetables, Food Export, and Biomaterials. The Packaged Fresh Vegetables segment markets and packs specialty packaged whole and fresh-cut fruits and vegetables utilizing the BreatheWay specialty packaging technology for the retail grocery, club store, and food service industries under the Eat Smart and GreenLine brands, as well as private label brands; and sells BreatheWay packaging technology to partners for fruit and vegetable products. The Food Export segment purchases and sells whole commodity fruit and vegetable products primarily to Asian markets. The Biomaterials segment sells products utilizing sodium hyaluronate (HA), a naturally occurring polysaccharide that is distributed in the extracellular matrix of connective tissues in animals and humans, and non-HA products for medical use primarily in the ophthalmic, orthopedic, and other markets, as well as supplies HA to customers pursuing other medical applications, such as aesthetic surgery, medical device coatings, tissue engineering, and pharmaceuticals. It also operates as a contract development and manufacturing organization, which specializes in fermentation and aseptic formulation, filling, and packaging services. The company also researches, develops, and licenses Landec's Intelimer polymers for agricultural products, personal care products, and other industrial products. Landec Corporation sells its products in the United States, Canada, Taiwan, Belgium, China, Indonesia, Japan, and other countries. The company was founded in 1986 and is headquartered in Menlo Park, California.

The J.M. Smucker Company Profile

The J. M. Smucker Company manufactures and markets branded food and beverage products worldwide. It operates through U.S. Retail Coffee, U.S. Retail Consumer Foods, U.S. Retail Pet Foods, and International and Foodservice segments. The company primarily offers coffee, pet food products, pet snacks, peanut butter, fruit spreads, shortening and oils, baking mixes and ready-to-spread frostings, frozen sandwiches, flour and baking ingredients, juices and beverages, and portion control products. It also provides pet premium products, dog snacks, ice cream toppings, pickles, and canned milk. The company offers its products primarily under the Folgers, Dunkin' Donuts, Café Bustelo, Folgers Gourmet Selections, Jif, Smucker's, Crisco, Pillsbury, Meow Mix, Milk-Bone, Natural Balance, Kibbles ?n Bits, 9Lives, Pup-Peroni, Nature's Recipe, Robin Hood, Five Roses, and Douwe Egberts brands. It sells its products through direct sales and brokers to food retailers, food wholesalers, drug stores, club stores, mass merchandisers, discount and dollar stores, military commissaries, natural foods stores and distributors, pet specialty stores, and online retailers; and through retail channels, and foodservice distributors and operators. The company was founded in 1897 and is headquartered in Orrville, Ohio.

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