Premier Foods (OTCMKTS:PRRFY) & Nomad Foods (NYSE:NOMD) Financial Comparison

Premier Foods (OTCMKTS:PRRFY) and Nomad Foods (NYSE:NOMD) are both consumer staples companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, institutional ownership, earnings, risk and valuation.

Volatility & Risk

Premier Foods has a beta of 0.4, suggesting that its stock price is 60% less volatile than the S&P 500. Comparatively, Nomad Foods has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500.

Dividends

Premier Foods pays an annual dividend of $0.16 per share and has a dividend yield of 1.2%. Nomad Foods pays an annual dividend of $0.68 per share and has a dividend yield of 7.2%. Nomad Foods pays out 66.7% of its earnings in the form of a dividend. Nomad Foods has increased its dividend for 2 consecutive years. Nomad Foods is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation and Earnings

This table compares Premier Foods and Nomad Foods”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Premier Foods	$1.45 billion	1.55	$159.36 million	N/A	N/A
Nomad Foods	$3.43 billion	0.39	$154.66 million	$1.02	9.28

Premier Foods has higher earnings, but lower revenue than Nomad Foods.

Insider and Institutional Ownership

75.3% of Nomad Foods shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Premier Foods and Nomad Foods’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Premier Foods	N/A	N/A	N/A
Nomad Foods	4.50%	9.83%	3.95%

Analyst Recommendations

This is a breakdown of current ratings for Premier Foods and Nomad Foods, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Premier Foods	0	1	0	0	2.00
Nomad Foods	2	1	3	0	2.17

Nomad Foods has a consensus target price of $12.50, indicating a potential upside of 32.07%. Given Nomad Foods’ stronger consensus rating and higher possible upside, analysts clearly believe Nomad Foods is more favorable than Premier Foods.

Summary

Nomad Foods beats Premier Foods on 11 of the 14 factors compared between the two stocks.

About Premier Foods

Premier Foods plc, together with its subsidiaries, manufactures and distributes branded and own label food products in the United Kingdom, other European countries, and internationally. The company operates through Grocery, Sweet Treats, and international segments. It offers a portfolio of product categories, including flavorings and seasonings under the Bisto, OXO, Paxo, and Saxa brands; cooking sauces and accompaniments under the Sharwood's, Loyd Grossman, Spice Tailor and Homepride brands; quick meals, snacks, and soups under the Batchelors and Smash brands; ambient desserts under the Ambrosia, Bird's, and Angel Delight brands; and ambient cakes under the Mr Kipling and Cadbury brands. The company also provides dumplings under the Atora brand name; plain flour under the Be-Ro brand; dried milk under the Marvel brand name; plain and self-raising flour under the McDougalls brand; and plant based food under the Plantastic brand name. It offers its products through supermarkets, discounters, convenience stores, and wholesale and food service facilities, as well as through e-commerce channels. The company was founded in 1975 and is headquartered in Saint Albans, the United Kingdom.

About Nomad Foods

Nomad Foods Limited, together with its subsidiaries, manufactures, markets, and distributes a range of frozen food products in the United Kingdom and internationally. The company offers frozen fish products, including fish fingers, coated fish, and natural fish; ready-to-cook vegetable products, such as peas and spinach; and frozen poultry and meat products comprising nuggets, grills, and burgers. It also provides meal products that include ready-to-cook noodles, pasta, lasagna, pancakes, and other ready-made meals; ice creams, such as in-home and out-of-home ice creams; and other products consisting of soups, pizzas, bakery goods, and meat substitutes. The company sells its products to supermarkets and food retail chains primarily under the Birds Eye, Green Cuisine, iglo, Findus, Aunt Bessie's, Goodfella's, Frikom, Ledo, La Cocinera, and Belviva brand names. Nomad Foods Limited was founded in 2014 and is headquartered in Feltham, the United Kingdom.