Flowers Foods (NYSE:FLO – Get Free Report) and Cuisine Solutions (OTCMKTS:CUSI – Get Free Report) are both small-cap consumer staples companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, risk, valuation and profitability.
Earnings & Valuation
This table compares Flowers Foods and Cuisine Solutions”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Flowers Foods | $5.26 billion | 0.32 | $83.82 million | $0.40 | 20.18 |
| Cuisine Solutions | N/A | N/A | N/A | N/A | N/A |
Analyst Ratings
This is a summary of current recommendations for Flowers Foods and Cuisine Solutions, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Flowers Foods | 2 | 4 | 0 | 0 | 1.67 |
| Cuisine Solutions | 0 | 0 | 0 | 0 | 0.00 |
Flowers Foods currently has a consensus target price of $11.80, suggesting a potential upside of 46.18%. Given Flowers Foods’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Flowers Foods is more favorable than Cuisine Solutions.
Profitability
This table compares Flowers Foods and Cuisine Solutions’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Flowers Foods | 1.59% | 16.61% | 5.38% |
| Cuisine Solutions | N/A | N/A | N/A |
Institutional and Insider Ownership
75.5% of Flowers Foods shares are owned by institutional investors. 11.6% of Flowers Foods shares are owned by company insiders. Comparatively, 61.1% of Cuisine Solutions shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Volatility and Risk
Flowers Foods has a beta of 0.39, suggesting that its stock price is 61% less volatile than the S&P 500. Comparatively, Cuisine Solutions has a beta of -0.35, suggesting that its stock price is 135% less volatile than the S&P 500.
Dividends
Flowers Foods pays an annual dividend of $0.99 per share and has a dividend yield of 12.3%. Cuisine Solutions pays an annual dividend of $2.00 per share and has a dividend yield of 10.2%. Flowers Foods pays out 247.5% 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 raised its dividend for 24 consecutive years. Flowers Foods is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Flowers Foods beats Cuisine Solutions on 10 of the 12 factors compared between the two stocks.
About Flowers Foods
Flowers Foods, Inc. produces and markets packaged bakery food products in the United States. Its principal products include fresh breads, buns, rolls, snack items, bagels, English muffins, and tortillas, as well as frozen breads and rolls under the Nature's Own, Dave's Killer Bread, Wonder, Canyon Bakehouse, Mrs. Freshley's, and Tastykake brand names. The company distributes its products through a direct-store-delivery distribution and a warehouse delivery system, as well as operates bakeries. Its customers include national and regional restaurants, institutions and foodservice distributors, and retail in-store bakeries; wholesale distributors; mass merchandisers, supermarkets, vending outlets, and convenience stores; quick-serve chains, food wholesalers, institutions, dollar stores, and vending companies; and public health care, military commissaries, and prisons, and other governmental institutions. 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 Cuisine Solutions
Cuisine Solutions, Inc. produces and markets various food products in the United States. Its products include beef, lamb, pork and veal, pastas, poultry, sauces, seafood, and vegetarian meals. The company offers its products to foodservice, on board services, retail, military, and national restaurant chain industries. Cuisine Solutions, Inc. was founded in 1972 and is based in Sterling, Virginia.
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