Flowers Foods (FLO) versus Amira Nature Foods (ANFI) Critical Contrast

Flowers Foods (NYSE: FLO) and Amira Nature Foods (NYSE:ANFI) are both consumer staples companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, profitability and institutional ownership.

Dividends

Flowers Foods pays an annual dividend of $0.72 per share and has a dividend yield of 3.5%. Amira Nature Foods does not pay a dividend. Flowers Foods pays out 80.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Flowers Foods has raised its dividend for 12 consecutive years.

Analyst Recommendations

This is a breakdown of current recommendations for Flowers Foods and Amira Nature Foods, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Flowers Foods 0 6 4 0 2.40
Amira Nature Foods 0 0 1 0 3.00

Flowers Foods presently has a consensus price target of $21.89, indicating a potential upside of 5.79%. Amira Nature Foods has a consensus price target of $5.63, indicating a potential upside of 145.63%. Given Amira Nature Foods’ stronger consensus rating and higher probable upside, analysts plainly believe Amira Nature Foods is more favorable than Flowers Foods.

Institutional & Insider Ownership

66.4% of Flowers Foods shares are owned by institutional investors. Comparatively, 16.1% of Amira Nature Foods shares are owned by institutional investors. 15.2% of Flowers Foods shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Flowers Foods and Amira Nature Foods’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Flowers Foods 3.58% 15.87% 7.39%
Amira Nature Foods N/A N/A N/A

Risk and Volatility

Flowers Foods has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500. Comparatively, Amira Nature Foods has a beta of -0.29, suggesting that its share price is 129% less volatile than the S&P 500.

Valuation & Earnings

This table compares Flowers Foods and Amira Nature Foods’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Flowers Foods $3.92 billion 1.11 $150.12 million $0.89 23.25
Amira Nature Foods $551.83 million 0.15 $25.08 million $0.95 2.41

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

Summary

Flowers Foods beats Amira Nature Foods on 13 of the 17 factors compared between the two stocks.

Flowers Foods Company Profile

Flowers Foods, Inc. produces and markets bakery products in the United States. It operates through two segments, Direct-Store-Delivery (DSD) and Warehouse Delivery. The DSD segment produces and markets fresh breads, buns, rolls, tortillas, and snack cakes. This segment offers its products primarily under the Nature's Own, Wonder, Cobblestone Bread Company, Tastykake, and Dave's Killer Bread brand names. It operates 39 bakeries, as well as sells its products through a network of independent distributors to retail and foodservice customers. The Warehouse Delivery segment produces snack cakes, frozen breads, and rolls for national retail, foodservice, vending, and co-pack customers through a network of warehouse channels. This segment markets its products under the Mrs. Freshley's, Alpine Valley Bread, and European Bakers brand names. It also sells products under franchised and licensed trademarks and trade names, such as Sunbeam, Bunny, and Sara Lee. The company was formerly known as Flowers Industries and changed its name to Flowers Foods, Inc. in 2001. Flowers Foods, Inc. was founded in 1919 and is headquartered in Thomasville, Georgia.

Amira Nature Foods Company Profile

Amira Nature Foods Ltd. engages in processing, sourcing, and selling packaged Indian specialty rice. The company provides various types of basmati rice, other specialty rice and other food products, ready-to-eat snacks, edible oils, and organic products for retailers under the Amira brand; and non-basmati rice. It also sells bulk commodities, including wheat, barley, legume, maize, sugar, soybean meal, onion, potato, and millet products to trading firms. The company sells its products to buyers in the Asia Pacific, Europe, the Middle East, North Africa, and North America; and distributors and retail chains in India. Amira Nature Foods Ltd. was founded in 1915 and is based in Dubai, the United Arab Emirates.

Receive News & Ratings for Flowers Foods Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Flowers Foods and related companies with MarketBeat.com's FREE daily email newsletter.


Leave a Reply