Reviewing Marzetti (NASDAQ:MZTI) & Seneca Foods (NASDAQ:SENEA)

Seneca Foods (NASDAQ:SENEA) and Marzetti (NASDAQ:MZTI) are both consumer staples companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, valuation, profitability, analyst recommendations, dividends, earnings and institutional ownership.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Seneca Foods	$1.66 billion	0.80	$114.67 million	$17.31	11.31
Marzetti	$1.93 billion	1.49	$191.61 million	$6.97	15.12

Marzetti has higher revenue and earnings than Seneca Foods. Seneca Foods is trading at a lower price-to-earnings ratio than Marzetti, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

42.5% of Seneca Foods shares are owned by institutional investors. Comparatively, 66.4% of Marzetti shares are owned by institutional investors. 8.2% of Seneca Foods shares are owned by insiders. Comparatively, 29.1% of Marzetti shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Seneca Foods has a beta of -0.03, meaning that its stock price is 103% less volatile than the S&P 500. Comparatively, Marzetti has a beta of 0.35, meaning that its stock price is 65% less volatile than the S&P 500.

Profitability

This table compares Seneca Foods and Marzetti’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Seneca Foods	6.75%	14.96%	8.56%
Marzetti	9.93%	18.22%	13.43%

Analyst Recommendations

This is a summary of current ratings and price targets for Seneca Foods and Marzetti, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Seneca Foods	0	1	1	0	2.50
Marzetti	1	2	0	0	1.67

Marzetti has a consensus price target of $135.00, indicating a potential upside of 28.10%. Given Marzetti’s higher probable upside, analysts clearly believe Marzetti is more favorable than Seneca Foods.

Summary

Marzetti beats Seneca Foods on 11 of the 14 factors compared between the two stocks.

About Seneca Foods

Seneca Foods Corporation provides packaged fruits and vegetables in the United States and internationally. The company offers canned, frozen, and jarred produce; jarred fruit; and snack chips and other food products under the private label, as well as under various national and regional brands that the company owns or licenses, including Seneca, Libby’s, Aunt Nellie’s, Cherryman, Green Valley, and READ. In addition, it packs canned and frozen vegetables under contract packing agreements. Further, the company engages in the sale of cans, ends, and seeds, as well as trucking and aircraft operations. It provides its products to grocery outlets, including supermarkets, mass merchandisers, limited assortment stores, club stores, and dollar stores; specialty retailers; and food service distributors, restaurant chains, industrial markets, other food packagers, and export customers in approximately 55 countries, as well as federal, state, and local governments for school and other feeding programs. Seneca Foods Corporation was incorporated in 1949 and is headquartered in Fairport, New York.

About Marzetti

Lancaster Colony Corporation engages in the manufacturing and marketing of specialty food products for the retail and foodservice channels in the United States. It operates in two segments, Retail and Foodservice. The company offers frozen garlic bread under the New York BRAND Bakery; frozen Parkerhouse style yeast and dinner rolls under the Sister Schubert's brand; salad dressings under the Marzetti, Simply Dressed, Cardini's, and Girard's brands; vegetable and fruit dips under the Marzetti brand; croutons and salad toppings under the New York BRAND Bakery, Chatham Village, and Marzetti brands; and frozen pasta under the Marzetti Frozen Pasta brand. It also manufactures and sells other products to brand license agreements, including Olive Garden dressings, Buffalo Wild Wings sauces, and Chick-fil-A sauces. The company sells its products through sales personnel, food brokers, and distributors to retailers and restaurants. Lancaster Colony Corporation was incorporated in 1961 and is based in Westerville, Ohio.