Analyzing George Weston (OTCMKTS:WNGRF) & Kraft Heinz (NASDAQ:KHC)

Kraft Heinz (NASDAQ:KHC) and George Weston (OTCMKTS:WNGRF) are both large-cap consumer staples companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.

Dividends

Kraft Heinz pays an annual dividend of $1.60 per share and has a dividend yield of 6.8%. George Weston pays an annual dividend of $0.85 per share and has a dividend yield of 1.2%. Kraft Heinz pays out -42.9% of its earnings in the form of a dividend. George Weston pays out 31.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Kraft Heinz is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Kraft Heinz and George Weston’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kraft Heinz	-17.35%	7.26%	3.86%
George Weston	2.37%	13.21%	3.33%

Valuation and Earnings

This table compares Kraft Heinz and George Weston”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kraft Heinz	$25.85 billion	1.07	$2.74 billion	($3.73)	-6.28
George Weston	$44.97 billion	0.58	$991.80 million	$2.71	25.24

Kraft Heinz has higher earnings, but lower revenue than George Weston. Kraft Heinz is trading at a lower price-to-earnings ratio than George Weston, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

78.2% of Kraft Heinz shares are held by institutional investors. Comparatively, 0.0% of George Weston shares are held by institutional investors. 0.4% of Kraft Heinz shares are held by insiders. Comparatively, 53.6% of George Weston shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for Kraft Heinz and George Weston, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kraft Heinz	3	18	0	1	1.95
George Weston	0	2	4	0	2.67

Kraft Heinz presently has a consensus price target of $26.63, suggesting a potential upside of 13.71%. Given Kraft Heinz’s higher probable upside, equities analysts clearly believe Kraft Heinz is more favorable than George Weston.

Volatility and Risk

Kraft Heinz has a beta of 0.09, indicating that its share price is 91% less volatile than the S&P 500. Comparatively, George Weston has a beta of 0.56, indicating that its share price is 44% less volatile than the S&P 500.

Summary

George Weston beats Kraft Heinz on 9 of the 17 factors compared between the two stocks.

About Kraft Heinz

The Kraft Heinz Company, together with its subsidiaries, manufactures and markets food and beverage products in North America and internationally. Its products include condiments and sauces, cheese and dairy products, meals, meats, refreshment beverages, coffee, and other grocery products under the Kraft, Oscar Mayer, Heinz, Philadelphia, Lunchables, Velveeta, Ore-Ida, Maxwell House, Kool-Aid, Jell-O, Heinz, ABC, Master, Quero, Kraft, Golden Circle, Wattie's, Pudliszki, and Plasmon brands. It sells its products through its own sales organizations, as well as through independent brokers, agents, and distributors to chain, wholesale, cooperative, and independent grocery accounts; convenience, value, and club stores; pharmacies and drug stores; mass merchants; foodservice distributors; institutions, including hotels, restaurants, bakeries, hospitals, health care facilities, and government agencies; and online through various e-commerce platforms and retailers. The company was formerly known as H.J. Heinz Holding Corporation and changed its name to The Kraft Heinz Company in July 2015. The Kraft Heinz Company was founded in 1869 and is based in Pittsburgh, Pennsylvania.

About George Weston

George Weston Limited provides food and drug retailing, and financial services in Canada. The company operates through two segments, Loblaw Companies Limited (Loblaw) and Choice Properties Real Estate Investment Trust (Choice Properties). The Loblaw segment provides grocery, pharmacy and healthcare services, health and beauty products, apparel, general merchandise, and financial services. This segment also offers credit card and other banking services, insurance brokerage services, guaranteed investment certificates, and wireless mobile products and services. The Choice Properties segment owns, operates, manages, and develops retail commercial and residential properties, leased to necessity-based tenants, industrial, and mixed-use and residential assets. It markets its products under the Shoppers Drug Mart, Joe Fresh, President’s Choice Bank, no name, Farmer’s Market, T&T, Life Brand, and PC Optimum brands. The company was founded in 1882 and is based in Toronto, Canada. George Weston Limited operates as a subsidiary of Wittington Investments, Limited.