Kewpie (OTCMKTS:KWPCY) & Pilgrim’s Pride (NASDAQ:PPC) Critical Review

Kewpie (OTCMKTS:KWPCY) and Pilgrim’s Pride (NASDAQ:PPC) 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, risk, earnings, profitability, dividends, valuation and analyst recommendations.

Earnings & Valuation

This table compares Kewpie and Pilgrim’s Pride”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kewpie	N/A	N/A	N/A	N/A	N/A
Pilgrim’s Pride	$18.50 billion	0.41	$1.08 billion	$2.30	13.78

Pilgrim’s Pride has higher revenue and earnings than Kewpie.

Analyst Ratings

This is a summary of current recommendations and price targets for Kewpie and Pilgrim’s Pride, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kewpie	0	0	0	0	0.00
Pilgrim’s Pride	1	5	2	0	2.12

Pilgrim’s Pride has a consensus target price of $36.50, suggesting a potential upside of 15.18%. Given Pilgrim’s Pride’s stronger consensus rating and higher possible upside, analysts plainly believe Pilgrim’s Pride is more favorable than Kewpie.

Institutional & Insider Ownership

16.6% of Pilgrim’s Pride shares are held by institutional investors. 82.2% of Pilgrim’s Pride shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Kewpie and Pilgrim’s Pride’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kewpie	N/A	N/A	N/A
Pilgrim’s Pride	2.96%	21.70%	7.90%

Summary

Pilgrim’s Pride beats Kewpie on 9 of the 9 factors compared between the two stocks.

About Kewpie

Kewpie Corporation, through its subsidiaries, engages in the manufacturing, wholesaling, transporting, and warehousing of food products in Japan and internationally. It offers condiments, including mayonnaise and dressings, and vinegar; egg products, such as liquid eggs, frozen eggs, dried eggs, egg spreads, and thick omelets; and delicatessen products comprising salads and delicatessen foods, and packaged salads. The company also provides processed foods consisting of bottled and/or canned foods, such as jams, fruit, pasta sauces, baby foods, and nursing care foods; and fine chemical products, including hyaluronic acid and others. In addition, it produces and sells fresh vegetables, dried meat, and machinery and equipment; provides consigned clerical work; engages in transportation and warehousing of food products, and sells equipment for cars, as well as is involved in the mail-order business. Further, the company offers advertising, publicity, and exhibitions services, as well as financial and business management services. The company was founded in 1919 and is headquartered in Tokyo, Japan.

About Pilgrim’s Pride

Pilgrim’s Pride Corp. engages in the production, processing, marketing, and distribution of fresh, frozen and value-added chicken and pork products to retailers, distributors, and foodservice operators. It operates through the following segments: U.S., U.K. and Europe, and Mexico. The company was founded by Lonnie A. Pilgrim and Aubrey Pilgrim on October 2, 1946, and is headquartered in Greeley, CO.