Critical Survey: Bunzl (OTCMKTS:BZLFY) vs. Premier Foods (OTCMKTS:PRRFY)

Premier Foods (OTCMKTS:PRRFY) and Bunzl (OTCMKTS:BZLFY) are both consumer staples companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, risk, profitability, dividends and valuation.

Analyst Recommendations

This is a breakdown of recent ratings for Premier Foods and Bunzl, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Premier Foods	0	0	0	0	0.00
Bunzl	0	3	2	0	2.40

Institutional and Insider Ownership

0.1% of Bunzl shares are held by institutional investors. 1.0% of Bunzl shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Premier Foods has a beta of 0.41, suggesting that its share price is 59% less volatile than the S&P 500. Comparatively, Bunzl has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500.

Profitability

This table compares Premier Foods and Bunzl’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Premier Foods	N/A	N/A	N/A
Bunzl	N/A	N/A	N/A

Dividends

Premier Foods pays an annual dividend of $0.18 per share and has a dividend yield of 1.3%. Bunzl pays an annual dividend of $0.69 per share and has a dividend yield of 3.9%.

Earnings and Valuation

This table compares Premier Foods and Bunzl”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Premier Foods	$1.58 billion	1.49	$183.09 million	N/A	N/A
Bunzl	$15.62 billion	0.73	$605.55 million	N/A	N/A

Bunzl has higher revenue and earnings than Premier Foods.

Summary

Bunzl beats Premier Foods on 8 of the 9 factors compared between the two stocks.

About Premier Foods

Premier Foods plc, together with its subsidiaries, manufactures and distributes branded and own label food products in the United Kingdom, other European countries, and internationally. The company operates through Grocery, Sweet Treats, and international segments. It offers a portfolio of product categories, including flavorings and seasonings under the Bisto, OXO, Paxo, and Saxa brands; cooking sauces and accompaniments under the Sharwood's, Loyd Grossman, Spice Tailor and Homepride brands; quick meals, snacks, and soups under the Batchelors and Smash brands; ambient desserts under the Ambrosia, Bird's, and Angel Delight brands; and ambient cakes under the Mr Kipling and Cadbury brands. The company also provides dumplings under the Atora brand name; plain flour under the Be-Ro brand; dried milk under the Marvel brand name; plain and self-raising flour under the McDougalls brand; and plant based food under the Plantastic brand name. It offers its products through supermarkets, discounters, convenience stores, and wholesale and food service facilities, as well as through e-commerce channels. The company was founded in 1975 and is headquartered in Saint Albans, the United Kingdom.

About Bunzl

Bunzl plc operates as a distribution and services company in the North America, Continental Europe, the United Kingdom, Ireland, and internationally. The company offers food packaging, films, labels, cleaning and hygiene supplies, and personal protection equipment to grocery stores, supermarkets, and convenience stores. It also provides food packaging, disposable tableware, guest amenities, catering equipment, agricultural supplies, cleaning and hygiene products, and safety items to hotels, restaurants, contract caterers, food processors, commercial growers, and the leisure sector; and gloves, boots, hard hats, ear and eye protection, and other workwear, as well as cleaning and hygiene supplies, and asset protection products to industrial and construction, and ecommerce sectors. In addition, the company offers chemicals and hygiene paper to cleaning and facilities management companies, and industrial and public sector customers; gloves, masks, swabs, gowns, bandages, and other healthcare related equipment; and healthcare devices to hospitals, care homes, and other facilities serving the healthcare sector. Further, it provides packaging and other store supplies to retail chains, boutiques, department stores, home improvement chains, office supply companies, and related e-commerce sales channels. Bunzl plc was founded in 1854 and is headquartered in London, the United Kingdom.