B&G Foods (BGS) & Flowers Foods (NYSE:FLO) Head to Head Comparison

Flowers Foods (NYSE: FLO) and B&G Foods (NYSE:BGS) are both consumer staples companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, earnings, risk and analyst recommendations.

Analyst Ratings

This is a summary of recent recommendations for Flowers Foods and B&G Foods, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Flowers Foods 0 5 3 0 2.38
B&G Foods 0 3 6 0 2.67

Flowers Foods presently has a consensus price target of $22.25, indicating a potential upside of 13.75%. B&G Foods has a consensus price target of $35.88, indicating a potential upside of 29.51%. Given B&G Foods’ stronger consensus rating and higher possible upside, analysts plainly believe B&G Foods is more favorable than Flowers Foods.

Profitability

This table compares Flowers Foods and B&G Foods’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Flowers Foods 3.83% 15.17% 6.95%
B&G Foods 12.20% 16.61% 4.14%

Dividends

Flowers Foods pays an annual dividend of $0.68 per share and has a dividend yield of 3.5%. B&G Foods pays an annual dividend of $1.86 per share and has a dividend yield of 6.7%. Flowers Foods pays out 76.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. B&G Foods pays out 87.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Flowers Foods has increased its dividend for 12 consecutive years and B&G Foods has increased its dividend for 7 consecutive years.

Institutional & Insider Ownership

65.9% of Flowers Foods shares are held by institutional investors. Comparatively, 96.0% of B&G Foods shares are held by institutional investors. 15.2% of Flowers Foods shares are held by insiders. Comparatively, 2.9% of B&G Foods shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Flowers Foods and B&G Foods’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Flowers Foods $3.92 billion 1.05 $150.12 million $0.89 21.98
B&G Foods $1.67 billion 1.10 $217.46 million $2.12 13.07

B&G Foods has lower revenue, but higher earnings than Flowers Foods. B&G Foods is trading at a lower price-to-earnings ratio than Flowers Foods, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Flowers Foods has a beta of 0.67, meaning that its share price is 33% less volatile than the S&P 500. Comparatively, B&G Foods has a beta of 0.27, meaning that its share price is 73% less volatile than the S&P 500.

Summary

B&G Foods beats Flowers Foods on 10 of the 17 factors compared between the two stocks.

About Flowers Foods

Flowers Foods, Inc. produces and markets bakery products in the United States. It operates through two segments, Direct-Store-Delivery (DSD) and Warehouse Delivery. The DSD segment produces and markets fresh breads, buns, rolls, tortillas, and snack cakes. This segment offers its products primarily under the Nature's Own, Wonder, Cobblestone Bread Company, Tastykake, and Dave's Killer Bread brand names. It operates 39 bakeries, as well as sells its products through a network of independent distributors to retail and foodservice customers. The Warehouse Delivery segment produces snack cakes, frozen breads, and rolls for national retail, foodservice, vending, and co-pack customers through a network of warehouse channels. This segment markets its products under the Mrs. Freshley's, Alpine Valley Bread, and European Bakers brand names. It also sells products under franchised and licensed trademarks and trade names, such as Sunbeam, Bunny, and Sara Lee. The company was formerly known as Flowers Industries and changed its name to Flowers Foods, Inc. in 2001. Flowers Foods, Inc. was founded in 1919 and is headquartered in Thomasville, Georgia.

About B&G Foods

B&G Foods, Inc. manufactures, sells, and distributes a portfolio of shelf-stable and frozen foods in the United States, Canada, and Puerto Rico. Its products include frozen and canned vegetables, hot cereals, fruit spreads, canned meats and beans, bagel chips, spices, seasonings, hot sauces, wine vinegars, maple syrups, molasses, salad dressings, pizza crusts, Mexican-style sauces, dry soups, taco shells and kits, salsas, pickles, peppers, tomato-based products, puffed corn and rice snacks, cookies and crackers, nut clusters, and other specialty products. The company markets its products under various brands, including Ac'cent, B&G, B&M, Back to Nature, Baker's Joy, Bear Creek Country Kitchens, Brer Rabbit, Canoleo, Cary's, Cream of Rice, Cream of Wheat, Devonsheer, Don Pepino, Durkee, Emeril's, Grandma's Molasses, Green Giant, JJ Flats, Joan of Arc, Las Palmas, Le Sueur, MacDonald's, Mama Mary's, Maple Grove Farms of Vermont, Molly McButter, Mrs. Dash, New York Flatbreads, New York Style, Old London, Original Tings, Ortega, Pirate's Booty, Polaner, Red Devil, Regina, Sa-són, Sclafani, Smart Puffs, SnackWell's, Spice Islands, Spring Tree, Sugar Twin, Tone's, Trappey's, TrueNorth, Underwood, Vermont Maid, Victoria, Weber, and Wright's. It also sells, markets, and distributes household products under the Static Guard brand. B&G Foods, Inc. sells and distributes its products directly, as well as through a network of independent brokers and distributors to supermarket chains, food service outlets, mass merchants, warehouse clubs, non-food outlets, and specialty distributors. The company was formerly known as B&G Foods Holdings Corp. and changed its name to B&G Foods, Inc. in October 2004. B&G Foods, Inc. was founded in 1996 and is headquartered in Parsippany, New Jersey.

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