Head-To-Head Analysis: Marzetti (NASDAQ:MZTI) and Seneca Foods (NASDAQ:SENEA)

Marzetti (NASDAQ:MZTI) and Seneca Foods (NASDAQ:SENEA) are both consumer staples companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Risk & Volatility

Marzetti has a beta of 0.35, suggesting that its stock price is 65% less volatile than the S&P 500. Comparatively, Seneca Foods has a beta of -0.03, suggesting that its stock price is 103% less volatile than the S&P 500.

Profitability

This table compares Marzetti and Seneca Foods’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Marzetti	9.93%	18.22%	13.43%
Seneca Foods	6.75%	14.96%	8.56%

Earnings and Valuation

This table compares Marzetti and Seneca Foods”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Marzetti	$1.93 billion	1.43	$191.61 million	$6.97	14.52
Seneca Foods	$1.66 billion	0.78	$114.67 million	$17.31	11.07

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

Institutional & Insider Ownership

66.4% of Marzetti shares are held by institutional investors. Comparatively, 42.5% of Seneca Foods shares are held by institutional investors. 29.1% of Marzetti shares are held by company insiders. Comparatively, 8.2% of Seneca Foods shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Marzetti and Seneca Foods, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Marzetti	1	2	0	0	1.67
Seneca Foods	0	1	1	0	2.50

Marzetti currently has a consensus price target of $135.00, indicating a potential upside of 33.40%. Given Marzetti’s higher probable upside, analysts plainly believe Marzetti is more favorable than Seneca Foods.

Summary

Marzetti beats Seneca Foods on 11 of the 14 factors compared between the two stocks.

About Marzetti

Lancaster Colony Corporation engages in the manufacturing and marketing of specialty food products for the retail and foodservice channels in the United States. It operates in two segments, Retail and Foodservice. The company offers frozen garlic bread under the New York BRAND Bakery; frozen Parkerhouse style yeast and dinner rolls under the Sister Schubert's brand; salad dressings under the Marzetti, Simply Dressed, Cardini's, and Girard's brands; vegetable and fruit dips under the Marzetti brand; croutons and salad toppings under the New York BRAND Bakery, Chatham Village, and Marzetti brands; and frozen pasta under the Marzetti Frozen Pasta brand. It also manufactures and sells other products to brand license agreements, including Olive Garden dressings, Buffalo Wild Wings sauces, and Chick-fil-A sauces. The company sells its products through sales personnel, food brokers, and distributors to retailers and restaurants. Lancaster Colony Corporation was incorporated in 1961 and is based in Westerville, Ohio.

About Seneca Foods

Seneca Foods Corporation provides packaged fruits and vegetables in the United States and internationally. The company offers canned, frozen, and jarred produce; jarred fruit; and snack chips and other food products under the private label, as well as under various national and regional brands that the company owns or licenses, including Seneca, Libby’s, Aunt Nellie’s, Cherryman, Green Valley, and READ. In addition, it packs canned and frozen vegetables under contract packing agreements. Further, the company engages in the sale of cans, ends, and seeds, as well as trucking and aircraft operations. It provides its products to grocery outlets, including supermarkets, mass merchandisers, limited assortment stores, club stores, and dollar stores; specialty retailers; and food service distributors, restaurant chains, industrial markets, other food packagers, and export customers in approximately 55 countries, as well as federal, state, and local governments for school and other feeding programs. Seneca Foods Corporation was incorporated in 1949 and is headquartered in Fairport, New York.