Head to Head Analysis: Sysco (NYSE:SYY) and Tate & Lyle (OTCMKTS:TATYY)

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

Dividends

Sysco pays an annual dividend of $2.16 per share and has a dividend yield of 2.7%. Tate & Lyle pays an annual dividend of $0.64 per share and has a dividend yield of 2.1%. Sysco pays out 59.8% of its earnings in the form of a dividend. Sysco has increased 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 Recommendations

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

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

Sysco presently has a consensus target price of $88.15, indicating a potential upside of 11.39%. Given Sysco’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Sysco is more favorable than Tate & Lyle.

Volatility & Risk

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

Profitability

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

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

Institutional and Insider Ownership

83.4% of Sysco shares are owned by institutional investors. 0.6% of Sysco shares are owned by company insiders. Comparatively, 0.2% of Tate & Lyle 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.

Valuation & Earnings

This table compares Sysco and Tate & Lyle”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sysco	$81.37 billion	0.47	$1.83 billion	$3.61	21.92
Tate & Lyle	$2.69 billion	1.24	$130.03 million	N/A	N/A

Sysco has higher revenue and earnings than Tate & Lyle.

Summary

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

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.

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.