General Mills (NYSE: GIS) and Blue Apron (NYSE:APRN) are both non-cyclical consumer goods & services companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.
Insider & Institutional Ownership
72.6% of General Mills shares are held by institutional investors. Comparatively, 58.7% of Blue Apron shares are held by institutional investors. 1.4% of General Mills shares are held by company 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.
This table compares General Mills and Blue Apron’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares General Mills and Blue Apron’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|General Mills||$15.62 billion||2.07||$1.66 billion||$2.73||20.84|
|Blue Apron||$881.19 million||0.11||-$54.88 million||($1.12)||-2.96|
General Mills has higher revenue and earnings than Blue Apron. Blue Apron is trading at a lower price-to-earnings ratio than General Mills, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and price targets for General Mills and Blue Apron, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
General Mills presently has a consensus target price of $58.08, suggesting a potential upside of 2.09%. Blue Apron has a consensus target price of $6.61, suggesting a potential upside of 99.61%. Given Blue Apron’s stronger consensus rating and higher probable upside, analysts clearly believe Blue Apron is more favorable than General Mills.
General Mills pays an annual dividend of $1.96 per share and has a dividend yield of 3.4%. Blue Apron does not pay a dividend. General Mills pays out 71.8% of its earnings in the form of a dividend. Blue Apron has increased its dividend for 14 consecutive years.
General Mills beats Blue Apron on 11 of the 16 factors compared between the two stocks.
About General Mills
General Mills, Inc. is a manufacturer and marketer of branded consumer foods sold through retail stores. The Company is a supplier of branded and unbranded food products to the North American foodservice and commercial baking industries. The Company has three segments: U.S. Retail, International, and Convenience Stores and Foodservice. Its products are marketed under various brands, which include Annie’s and Betty Crocker. The Company’s U.S. Retail segment reflects business with a range of grocery stores, mass merchandisers, membership stores, natural food chains, drug, dollar and discount chains, and e-commerce grocery providers operating throughout the United States. The International segment consists of retail and foodservice businesses outside of the United States. The Convenience Stores and Foodservice segment’s product categories include ready-to-eat cereals, snacks, refrigerated yogurt, frozen meals, unbaked and fully baked frozen dough products, and baking mixes.
About Blue Apron
Blue Apron Holdings, Inc. is a holding company. The Company is focused on providing recipes and fresh ingredients for making home cooking accessible. The Company offers under a novel business model in which it source, process, store and package meal ingredients and ship them directly to consumers. The Company’s core products include Meals and Wine. Meals product, which offers two meal plans, such as two person plan and family plan. Two person plan, which includes three recipes per week (chosen from six options), each of which serves two people and shipping is free. The Company provides original recipes with the pre-portioned ingredients to complement tastes and lifestyles of college graduates, young couples, families, singles, and empty nesters.
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