Mondelez International (NASDAQ:MDLZ) & Associated British Foods (OTCMKTS:ASBFY) Head-To-Head Survey

Associated British Foods (OTCMKTS:ASBFY) and Mondelez International (NASDAQ:MDLZ) are both large-cap consumer staples companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.

Risk & Volatility

Associated British Foods has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500. Comparatively, Mondelez International has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500.

Dividends

Associated British Foods pays an annual dividend of $0.96 per share and has a dividend yield of 3.8%. Mondelez International pays an annual dividend of $2.00 per share and has a dividend yield of 3.7%. Mondelez International pays out 74.9% of its earnings in the form of a dividend. Mondelez International has raised its dividend for 13 consecutive years.

Insider and Institutional Ownership

78.3% of Mondelez International shares are held by institutional investors. 0.4% of Mondelez International shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Associated British Foods and Mondelez International’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
Mondelez International	9.38%	14.16%	5.33%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Associated British Foods and Mondelez International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Associated British Foods	2	2	0	1	2.00
Mondelez International	1	7	14	0	2.59

Mondelez International has a consensus target price of $66.26, indicating a potential upside of 22.73%. Given Mondelez International’s stronger consensus rating and higher possible upside, analysts clearly believe Mondelez International is more favorable than Associated British Foods.

Valuation & Earnings

This table compares Associated British Foods and Mondelez International”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	0.71	$1.34 billion	N/A	N/A
Mondelez International	$36.44 billion	1.91	$4.61 billion	$2.67	20.22

Mondelez International has higher revenue and earnings than Associated British Foods.

Summary

Mondelez International beats Associated British Foods on 12 of the 16 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 Mondelez International

Mondelez International, Inc., through its subsidiaries, manufactures, markets, and sells snack food and beverage products in the Latin America, North America, Asia, the Middle East, Africa, and Europe. It provides biscuits and baked snacks, including cookies, crackers, salted snacks, snack bars, and cakes and pastries; chocolates; and gums and candies, as well as various cheese and grocery, and powdered beverage products. The company's brand portfolio includes Oreo, Ritz, LU, CLIF Bar, and Tate's Bake Shop biscuits and baked snacks, as well as Cadbury Dairy Milk, Milka, and Toblerone chocolate. It serves supermarket chains, wholesalers, supercenters, club stores, mass merchandisers, distributors, convenience stores, gasoline stations, drug stores, value stores, and other retail food outlets through direct store delivery, company-owned and satellite warehouses, distribution centers, third party distributors, and other facilities, as well as through independent sales offices and agents. The company also sells products directly to businesses and consumers through e-retail platforms, retailer digital platforms, as well as through its direct-to-consumer websites and social media platforms. Mondelez International, Inc. was formerly known as Kraft Foods Inc. and changed its name to Mondelez International, Inc. in October 2012. The company was incorporated in 2000 and is headquartered in Chicago, Illinois.