Kraft Heinz (NASDAQ:KHC) and Brasilagro Cia Brasileira De Propriedades Agricolas (NYSE:LND) Critical Comparison

Kraft Heinz (NASDAQ:KHC) and Brasilagro Cia Brasileira De Propriedades Agricolas (NYSE:LND) are both consumer staples companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, valuation, profitability, dividends, risk and institutional ownership.

Insider and Institutional Ownership

78.2% of Kraft Heinz shares are held by institutional investors. Comparatively, 1.1% of Brasilagro Cia Brasileira De Propriedades Agricolas shares are held by institutional investors. 0.2% of Kraft Heinz shares are held by insiders. Comparatively, 0.7% of Brasilagro Cia Brasileira De Propriedades Agricolas shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Dividends

Kraft Heinz pays an annual dividend of $1.60 per share and has a dividend yield of 7.2%. Brasilagro Cia Brasileira De Propriedades Agricolas pays an annual dividend of $0.12 per share and has a dividend yield of 3.4%. Kraft Heinz pays out -55.9% of its earnings in the form of a dividend. Brasilagro Cia Brasileira De Propriedades Agricolas pays out -70.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Ratings

This is a breakdown of recent recommendations for Kraft Heinz and Brasilagro Cia Brasileira De Propriedades Agricolas, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kraft Heinz	5	11	1	0	1.76
Brasilagro Cia Brasileira De Propriedades Agricolas	1	0	0	0	1.00

Kraft Heinz presently has a consensus target price of $23.88, indicating a potential upside of 7.57%. Given Kraft Heinz’s stronger consensus rating and higher possible upside, research analysts clearly believe Kraft Heinz is more favorable than Brasilagro Cia Brasileira De Propriedades Agricolas.

Profitability

This table compares Kraft Heinz and Brasilagro Cia Brasileira De Propriedades Agricolas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kraft Heinz	-13.64%	7.10%	3.60%
Brasilagro Cia Brasileira De Propriedades Agricolas	-9.93%	-4.36%	-2.38%

Volatility & Risk

Kraft Heinz has a beta of 0.12, suggesting that its stock price is 88% less volatile than the S&P 500. Comparatively, Brasilagro Cia Brasileira De Propriedades Agricolas has a beta of 0.07, suggesting that its stock price is 93% less volatile than the S&P 500.

Valuation and Earnings

This table compares Kraft Heinz and Brasilagro Cia Brasileira De Propriedades Agricolas”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kraft Heinz	$24.90 billion	1.06	-$5.85 billion	($2.86)	-7.76
Brasilagro Cia Brasileira De Propriedades Agricolas	$177.24 million	2.03	-$17.03 million	($0.17)	-20.62

Brasilagro Cia Brasileira De Propriedades Agricolas has lower revenue, but higher earnings than Kraft Heinz. Brasilagro Cia Brasileira De Propriedades Agricolas is trading at a lower price-to-earnings ratio than Kraft Heinz, indicating that it is currently the more affordable of the two stocks.

Summary

Kraft Heinz beats Brasilagro Cia Brasileira De Propriedades Agricolas on 10 of the 16 factors compared between the two stocks.

About Kraft Heinz

The Kraft Heinz Company, together with its subsidiaries, manufactures and markets food and beverage products in North America and internationally. Its products include condiments and sauces, cheese and dairy products, meals, meats, refreshment beverages, coffee, and other grocery products under the Kraft, Oscar Mayer, Heinz, Philadelphia, Lunchables, Velveeta, Ore-Ida, Maxwell House, Kool-Aid, Jell-O, Heinz, ABC, Master, Quero, Kraft, Golden Circle, Wattie's, Pudliszki, and Plasmon brands. It sells its products through its own sales organizations, as well as through independent brokers, agents, and distributors to chain, wholesale, cooperative, and independent grocery accounts; convenience, value, and club stores; pharmacies and drug stores; mass merchants; foodservice distributors; institutions, including hotels, restaurants, bakeries, hospitals, health care facilities, and government agencies; and online through various e-commerce platforms and retailers. The company was formerly known as H.J. Heinz Holding Corporation and changed its name to The Kraft Heinz Company in July 2015. The Kraft Heinz Company was founded in 1869 and is based in Pittsburgh, Pennsylvania.

About Brasilagro Cia Brasileira De Propriedades Agricolas

BrasilAgro – Companhia Brasileira de Propriedades Agrícolas engages in the acquisition, development, exploration, and sale of rural properties suitable for agricultural activities in Brazil and internationally. It operates through six segments: Real Estate, Grains, Sugarcane, livestock, Cotton, and Other. The company involved in the cultivation of soybean, corn, sesame, and cotton, as well as sugarcane; and production and sale of beef calves after weaning. It also imports and exports agricultural products, livestock, and forestry activities and inputs; purchases, sells, and/or rents rural/urban properties; provides real estate brokerage services; and manages third-party assets. It operates farms through own and leased lands. BrasilAgro – Companhia Brasileira de Propriedades Agrícolas was incorporated in 2005 and is headquartered in São Paulo, Brazil.