Analyzing WhiteWave Foods (NYSE:WWAV) and Dean Foods (DF)

Dean Foods (NYSE: DF) and WhiteWave Foods (NYSE:WWAV) are both consumer staples companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.

Analyst Ratings

This is a summary of current ratings and price targets for Dean Foods and WhiteWave Foods, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dean Foods 3 7 3 0 2.00
WhiteWave Foods 1 4 0 0 1.80

Dean Foods currently has a consensus target price of $14.67, suggesting a potential upside of 19.83%. WhiteWave Foods has a consensus target price of $56.08, suggesting a potential downside of 0.28%. Given Dean Foods’ stronger consensus rating and higher possible upside, equities analysts plainly believe Dean Foods is more favorable than WhiteWave Foods.

Valuation and Earnings

This table compares Dean Foods and WhiteWave Foods’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Dean Foods $7.91 billion 0.14 $376.23 million $0.60 20.40
WhiteWave Foods N/A N/A N/A $1.11 50.67

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

Profitability

This table compares Dean Foods and WhiteWave Foods’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dean Foods 0.70% 16.63% 3.92%
WhiteWave Foods 6.21% 17.51% 5.92%

Insider and Institutional Ownership

80.6% of WhiteWave Foods shares are held by institutional investors. 1.2% of Dean Foods shares are held by insiders. Comparatively, 6.2% of WhiteWave Foods shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk and Volatility

Dean Foods has a beta of 0.54, meaning that its stock price is 46% less volatile than the S&P 500. Comparatively, WhiteWave Foods has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500.

Dividends

Dean Foods pays an annual dividend of $0.36 per share and has a dividend yield of 2.9%. WhiteWave Foods does not pay a dividend. Dean Foods pays out 60.0% of its earnings in the form of a dividend.

Summary

WhiteWave Foods beats Dean Foods on 8 of the 13 factors compared between the two stocks.

Dean Foods Company Profile

Dean Foods Company is a food and beverage company. The Company processes and distributes fluid milk, and other dairy and dairy case products in the United States. It is engaged in manufacturing, marketing, selling and distributing a range of branded and private label dairy and dairy case products. It offers branded and private label dairy case products, including fluid milk, ice cream, cultured dairy products, creamers, ice cream mix and other dairy products to retailers, distributors, foodservice outlets, educational institutions and governmental entities across the United States. It also offers juices, teas and bottled water. As of December 31, 2016, the Company had over 50 national, regional and local dairy brands, as well as private labels. As of December 31, 2016, the Company’s national, local and regional licensed brands included Alta Dena, Hygeia, PET, Arctic Splash, Jilbert, Pog, Barbers Dairy, Purity, Berkeley Farms, Land-O-Sun & design and ReadyLeaf, Broughton.

WhiteWave Foods Company Profile

The WhiteWave Foods Company is a consumer packaged food and beverage company. The Company manufactures, markets, distributes and sells branded plant-based foods and beverages, coffee creamers and beverages, dairy products and organic produce. It operates through two segments: Americas Foods & Beverages and Europe Foods & Beverages. The Americas Foods & Beverages segment includes plant-based foods and beverages, including its Silk and So Delicious branded beverages, such as soymilk, almondmilk, coconutmilk and cashewmilk, ice cream and frozen products, and plant-based yogurts, and Vega plant-based products. The Europe Foods & Beverages segment includes plant-based foods and beverages, such as its Alpro and Provamel brand beverages using soy, almond, coconut, hazelnut, rice and oat and other plant-based ingredients, and plant-based alternatives to yogurt, culinary creams, desserts and margarine. It sells products primarily in North America, Europe and through a joint venture in China.

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