Teijin Adr Rep (TINLY) vs. Hormel Foods (HRL) Critical Survey

Teijin Adr Rep (OTCMKTS: TINLY) and Hormel Foods (NYSE:HRL) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, valuation, risk, earnings, analyst recommendations, dividends and institutional ownership.

Dividends

Teijin Adr Rep pays an annual dividend of $0.40 per share and has a dividend yield of 2.2%. Hormel Foods pays an annual dividend of $0.75 per share and has a dividend yield of 2.0%. Teijin Adr Rep pays out 21.2% of its earnings in the form of a dividend. Hormel Foods pays out 47.8% 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. Hormel Foods has raised its dividend for 51 consecutive years. Teijin Adr Rep is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

0.0% of Teijin Adr Rep shares are held by institutional investors. Comparatively, 40.6% of Hormel Foods shares are held by institutional investors. 3.5% of Hormel Foods shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Teijin Adr Rep and Hormel Foods’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Teijin Adr Rep 5.44% 11.47% 4.69%
Hormel Foods 10.05% 17.44% 12.04%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Teijin Adr Rep and Hormel Foods, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Teijin Adr Rep 0 0 0 0 N/A
Hormel Foods 1 4 5 0 2.40

Hormel Foods has a consensus target price of $35.56, indicating a potential downside of 5.39%. Given Hormel Foods’ higher possible upside, analysts clearly believe Hormel Foods is more favorable than Teijin Adr Rep.

Volatility and Risk

Teijin Adr Rep has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500. Comparatively, Hormel Foods has a beta of 0.42, meaning that its share price is 58% less volatile than the S&P 500.

Earnings & Valuation

This table compares Teijin Adr Rep and Hormel Foods’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Teijin Adr Rep $7.54 billion 0.47 $410.00 million $1.89 9.44
Hormel Foods $9.17 billion 2.17 $846.73 million $1.57 23.94

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

Summary

Hormel Foods beats Teijin Adr Rep on 12 of the 16 factors compared between the two stocks.

Teijin Adr Rep Company Profile

Teijin Limited engages in advanced fibers and composites, electric materials and performance polymer products, healthcare, fiber and products converting, and IT businesses worldwide. The company's Advanced Fibers and Composites segment offers para-aramid, meta-aramid, polyester, and polyethylene naphthalate (PEN) fibers; artificial leather; carbon fibers and intermediate materials; carbon fiber reinforced composites; and flame-resistant fibers. Its Electronics Materials and Performance Polymer Products segment provides polycarbonate (PC) resins, PC/ABS and PC/AS polymer alloys, PEN resins, polyethylene terephthalate (PET) resins, polybutylene naphthalete resins, PPS compound resins, PET and PEN films, processed films, raw materials, and polymers. The company's Healthcare segment offers Bonalon and Onealfa for the treatment of osteoporosis; Synvisc to treat knee osteoarthritis pain; sonic accelerated fracture healing systems; Mucosolvan, an expectorant; and Alvesco, an inhaled corticosteroid agent for asthma. This segment also provides oxygen concentrators for home oxygen therapy; continuous positive airway pressure units; NIP NASAL, a non-invasive positive pressure ventilator; AutoSet CS, an adaptive servo-ventilator; Feburic to treat hyperuricemia and gout; Tricor for hyperlipidemia; and Venilon for intravenous immunoglobulin preparation, as well as sells and rents home healthcare devices. Its Trading and Retail segment engages in the trading and retail of polyester filaments, other fibers, and polymer products. The company also offers IT services in the healthcare field, Web-based enterprise resource planning software, and digital content management services; and content distribution services for mobile phones and smartphones, and e-commerce services. Teijin Limited was founded in 1918 and is headquartered in Tokyo, Japan.

Hormel Foods Company Profile

Hormel Foods Corporation produces and markets various meat and food products in the United States and internationally. The company operates through five segments: Grocery Products, Refrigerated Foods, Jennie-O Turkey Store, Specialty Foods, and International & Other. It offers various perishable meat products, including fresh meats, frozen items, refrigerated meal solutions, sausages, hams, guacamole, and bacon; and shelf-stable products, such as canned luncheon meats, peanut butter, chilies, shelf-stable microwaveable meals, hash, stews, meat spreads, flour and corn tortillas, salsas, tortilla chips, and other products. The company also provides turkey products; nutritional food products and supplements; dessert and drink mixes; and industrial gelatin products. It sells its products through sales personnel, as well as through independent brokers and distributors. The company was formerly known as Geo. A. Hormel & Company and changed its name to Hormel Foods Corporation in January 1995. Hormel Foods Corporation was founded in 1891 and is based in Austin, Minnesota.

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