Head-To-Head Analysis: Oatly Group (NASDAQ:OTLY) vs. Lamb Weston (NYSE:LW)

Oatly Group (NASDAQ:OTLY) and Lamb Weston (NYSE:LW) are both consumer staples companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.

Profitability

This table compares Oatly Group and Lamb Weston’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Oatly Group	-9.51%	-2,479.86%	-11.98%
Lamb Weston	3.85%	23.27%	5.70%

Valuation & Earnings

This table compares Oatly Group and Lamb Weston”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oatly Group	$862.46 million	0.29	-$152.77 million	($2.84)	-2.79
Lamb Weston	$6.62 billion	1.17	$290.00 million	$1.83	30.67

Lamb Weston has higher revenue and earnings than Oatly Group. Oatly Group is trading at a lower price-to-earnings ratio than Lamb Weston, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Oatly Group has a beta of 1.96, indicating that its stock price is 96% more volatile than the S&P 500. Comparatively, Lamb Weston has a beta of 0.49, indicating that its stock price is 51% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Oatly Group and Lamb Weston, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oatly Group	1	1	4	0	2.50
Lamb Weston	0	10	3	1	2.36

Oatly Group currently has a consensus target price of $14.31, indicating a potential upside of 80.59%. Lamb Weston has a consensus target price of $53.82, indicating a potential downside of 4.12%. Given Oatly Group’s stronger consensus rating and higher possible upside, equities analysts plainly believe Oatly Group is more favorable than Lamb Weston.

Institutional & Insider Ownership

68.2% of Oatly Group shares are held by institutional investors. Comparatively, 89.6% of Lamb Weston shares are held by institutional investors. 1.7% of Oatly Group shares are held by insiders. Comparatively, 1.0% of Lamb Weston shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Lamb Weston beats Oatly Group on 10 of the 15 factors compared between the two stocks.

About Oatly Group

Oatly Group AB is a Sweden-based food and beverage company focused on developing, producing and selling oat-based alternatives to dairy products. Its portfolio includes oat drinks, barista beverages, yogurt-style products, cooking creams, spreads, ice cream and other oat-based foods and beverages. The company was founded in the 1990s in Sweden, based on research into the nutritional and functional properties of oats. Oatly markets its products under the Oatly brand and emphasizes plant-based nutrition, sustainability and the use of oats as an alternative to dairy ingredients.

About Lamb Weston

Lamb Weston Holdings, Inc. is a food company that produces and markets frozen potato products. Its offerings include French fries, sweet potato products and other potato-based sides and appetizers. The company serves foodservice customers, including restaurants and other commercial food providers, as well as retail customers through grocery stores and other channels. Its products are sold in North America and international markets. Lamb Weston traces its roots to a potato-processing business founded by Gilbert Lamb in 1950 in Weston, Oregon.