Comparing Sysco (NYSE:SYY) and Tate & Lyle (OTCMKTS:TATYY)

Tate & Lyle (OTCMKTS:TATYY) and Sysco (NYSE:SYY) are both consumer staples companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, profitability, risk and dividends.

Volatility and Risk

Tate & Lyle has a beta of 0.4, meaning that its stock price is 60% less volatile than the S&P 500. Comparatively, Sysco has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500.

Insider & Institutional Ownership

83.4% of Sysco shares are held by institutional investors. 0.2% of Tate & Lyle shares are held by company insiders. Comparatively, 0.6% of Sysco shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Tate & Lyle and Sysco’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tate & Lyle	N/A	N/A	N/A
Sysco	2.08%	103.57%	8.06%

Earnings & Valuation

This table compares Tate & Lyle and Sysco”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tate & Lyle	$2.69 billion	1.25	$130.03 million	N/A	N/A
Sysco	$81.37 billion	0.46	$1.83 billion	$3.61	21.80

Sysco has higher revenue and earnings than Tate & Lyle.

Dividends

Tate & Lyle pays an annual dividend of $0.64 per share and has a dividend yield of 2.1%. Sysco pays an annual dividend of $2.16 per share and has a dividend yield of 2.7%. Sysco pays out 59.8% of its earnings in the form of a dividend. Sysco has raised its dividend for 57 consecutive years. Sysco is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for Tate & Lyle and Sysco, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tate & Lyle	1	4	0	0	1.80
Sysco	0	7	9	0	2.56

Sysco has a consensus price target of $88.15, suggesting a potential upside of 12.04%. Given Sysco’s stronger consensus rating and higher possible upside, analysts plainly believe Sysco is more favorable than Tate & Lyle.

Summary

Sysco beats Tate & Lyle on 13 of the 15 factors compared between the two stocks.

About Tate & Lyle

Tate & Lyle PLC, together with its subsidiaries, provides ingredients and solutions to the food, beverage, and other industries in the United States, the United Kingdom, other European countries, and internationally. It operates through three segments: Food & Beverage Solutions, Sucralose, and Primary Products. The company offers dairy products, soups, sauces, and dressings; bakery products and snacks; texturants; nutritive sweeteners, such as high fructose corn syrup and dextrose; fibres; and stabilizers and functional systems. It also provides industrial starches; acidulants, such as citric acid; and commodities comprising corn gluten feed, meal, and corn oil. The company was incorporated in 1903 and is headquartered in London, the United Kingdom.

About Sysco

Sysco Corporation, through its subsidiaries, engages in the marketing and distribution of various food and related products to the foodservice or food-away-from-home industry in the United States, Canada, the United Kingdom, France, and internationally. It operates through U.S. Foodservice Operations, International Foodservice Operations, SYGMA, and Other segments. The company distributes frozen food, such as meat, seafood, fully prepared entrées, fruits, vegetables, and desserts; canned and dry food products; fresh meat and seafood products; dairy products; beverages; imported specialties; and fresh produce products. It also supplies various non-food items, including paper products comprising disposable napkins, plates, and cups; tableware consisting of glassware and silverware; cookware, such as pots, pans, and utensils; restaurant and kitchen equipment and supplies; and cleaning supplies. The company serves restaurants, hospitals and nursing facilities, schools and colleges, hotels and motels, industrial caterers, and other foodservice venues. Sysco Corporation was incorporated in 1969 and is headquartered in Houston, Texas.