Analyzing SunOpta (NASDAQ:STKL) and Associated British Foods (OTCMKTS:ASBFY)

Associated British Foods (OTCMKTS:ASBFY) and SunOpta (NASDAQ:STKL) are both consumer staples companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, profitability, risk and earnings.

Analyst Ratings

This is a summary of recent ratings and target prices for Associated British Foods and SunOpta, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Associated British Foods	3	1	0	1	1.80
SunOpta	1	1	2	0	2.25

SunOpta has a consensus price target of $9.00, indicating a potential upside of 142.59%. Given SunOpta’s stronger consensus rating and higher possible upside, analysts plainly believe SunOpta is more favorable than Associated British Foods.

Profitability

This table compares Associated British Foods and SunOpta’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Associated British Foods	N/A	N/A	N/A
SunOpta	0.16%	14.91%	3.38%

Valuation & Earnings

This table compares Associated British Foods and SunOpta”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Associated British Foods	$25.41 billion	0.80	$1.34 billion	N/A	N/A
SunOpta	$792.44 million	0.57	-$17.39 million	N/A	N/A

Associated British Foods has higher revenue and earnings than SunOpta.

Volatility and Risk

Associated British Foods has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500. Comparatively, SunOpta has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500.

Insider & Institutional Ownership

85.4% of SunOpta shares are owned by institutional investors. 1.9% of SunOpta shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

SunOpta beats Associated British Foods on 9 of the 13 factors compared between the two stocks.

About Associated British Foods

Associated British Foods plc operates as a diversified food, ingredients, and retail company worldwide. It operates through five segments: Grocery, Ingredients, Agriculture, Sugar, and Retail. The Grocery segment manufactures and sells grocery products, including hot beverages, sugar and sweeteners, vegetable oils, balsamic vinegars, bread and baked goods, cereals, ethnic foods, and meat products to retail, wholesale, and foodservice businesses. The Ingredients segment manufactures bakers' yeast, bakery ingredients, enzymes, lipids, yeast extracts, and cereal specialties. The Agriculture segment manufactures and sells animal feeds; and provides other products and services for the agriculture sector. The Sugar segment is involved in growing, processing, and selling sugar beet and sugar cane to industrial users. The Retail segment is involved in buying and merchandising clothing and accessories through the Primark and Penneys retail chains, which offer women's, men's, and kids wear, as well as beauty, homeware, and accessories. The company was incorporated in 1934 and is headquartered in London, the United Kingdom. Associated British Foods plc operates as a subsidiary of Wittington Investments Limited.

About SunOpta

SunOpta Inc. engages in manufacture and sale of plant-based and fruit-based food and beverage products in the United States, Canada, and internationally. The company provides plant-based beverages utilizing oat, almond, soy, coconut, rice, hemp, and other bases under the Dream and West Life brands; oat-based creamers under the SOWN brand; ready-to-drink protein shakes; and nut, grain, seed, and legume based beverages; packaged teas and concentrates; and meat and vegetable broths and stocks. It also offers plant-based ingredients, such as oatbase, oatgold, soybase, hempbase, and soypowders and okara; ready-to-eat fruit snacks made from apple purée and juice concentrate in bar, bit, twist, strip and sandwich formats; cold pressed fruit bars; liquid and powder ingredients utilizing oat, soy and hemp bases; ready-to-eat fruit smoothie and chia bowls topped with frozen fruit; consumer products, which includes protein shakes, teas, broths, and fruit snacks; and liquid and dry ingredients for internal use and for sale to other food and beverage manufacturers. It sells its products through various distribution channels including private label products to retail customers; branded products under co-manufacturing agreements to other branded food companies for their distribution; and its own branded products to retail and foodservice customers. The company was formerly known as Stake Technology Ltd. and changed its name to SunOpta Inc. in October 2003. SunOpta Inc. was incorporated in 1973 and is headquartered in Eden Prairie, Minnesota.