Analyzing Kraft Heinz (NASDAQ:KHC) & Tate & Lyle (OTCMKTS:TATYY)

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

Dividends

Tate & Lyle pays an annual dividend of $0.64 per share and has a dividend yield of 3.5%. Kraft Heinz pays an annual dividend of $1.60 per share and has a dividend yield of 7.3%. Kraft Heinz pays out -32.4% of its earnings in the form of a dividend.

Profitability

This table compares Tate & Lyle and Kraft Heinz’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
Kraft Heinz	-23.44%	7.07%	3.68%

Earnings and Valuation

This table compares Tate & Lyle and Kraft Heinz”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tate & Lyle	$2.21 billion	0.93	$182.45 million	N/A	N/A
Kraft Heinz	$24.94 billion	1.05	-$5.85 billion	($4.94)	-4.46

Tate & Lyle has higher earnings, but lower revenue than Kraft Heinz.

Insider and Institutional Ownership

78.2% of Kraft Heinz shares are owned by institutional investors. 0.2% of Tate & Lyle shares are owned by company insiders. Comparatively, 0.4% of Kraft Heinz shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Tate & Lyle and Kraft Heinz, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tate & Lyle	1	3	0	1	2.20
Kraft Heinz	6	14	0	1	1.81

Kraft Heinz has a consensus target price of $24.61, suggesting a potential upside of 11.67%. Given Kraft Heinz’s higher possible upside, analysts clearly believe Kraft Heinz is more favorable than Tate & Lyle.

Volatility & Risk

Tate & Lyle has a beta of 0.28, suggesting that its stock price is 72% less volatile than the S&P 500. Comparatively, Kraft Heinz has a beta of 0.06, suggesting that its stock price is 94% less volatile than the S&P 500.

Summary

Kraft Heinz beats Tate & Lyle on 9 of the 13 factors compared between the two stocks.

About Tate & Lyle

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 three segments: Food & Beverage Solutions, Sucralose, and Primary Products. The company offers dairy products, soups, sauces, and dressings; bakery products and snacks; texturants; nutritive sweeteners, such as high fructose corn syrup and dextrose; fibres; and stabilizers and functional systems. It also provides industrial starches; acidulants, such as citric acid; and commodities comprising corn gluten feed, meal, and corn oil. The company was incorporated in 1903 and is headquartered in London, the United Kingdom.

About Kraft Heinz

The Kraft Heinz Company, together with its subsidiaries, manufactures and markets food and beverage products in North America and internationally. Its products include condiments and sauces, cheese and dairy products, meals, meats, refreshment beverages, coffee, and other grocery products under the Kraft, Oscar Mayer, Heinz, Philadelphia, Lunchables, Velveeta, Ore-Ida, Maxwell House, Kool-Aid, Jell-O, Heinz, ABC, Master, Quero, Kraft, Golden Circle, Wattie's, Pudliszki, and Plasmon brands. It sells its products through its own sales organizations, as well as through independent brokers, agents, and distributors to chain, wholesale, cooperative, and independent grocery accounts; convenience, value, and club stores; pharmacies and drug stores; mass merchants; foodservice distributors; institutions, including hotels, restaurants, bakeries, hospitals, health care facilities, and government agencies; and online through various e-commerce platforms and retailers. The company was formerly known as H.J. Heinz Holding Corporation and changed its name to The Kraft Heinz Company in July 2015. The Kraft Heinz Company was founded in 1869 and is based in Pittsburgh, Pennsylvania.