Tyson Foods (NYSE:TSN) vs. Armanino Foods of Distinction (OTCMKTS:AMNF) Critical Review

Armanino Foods of Distinction (OTCMKTS:AMNF) and Tyson Foods (NYSE:TSN) are both consumer staples companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, analyst recommendations, risk, dividends and valuation.

Valuation & Earnings

This table compares Armanino Foods of Distinction and Tyson Foods”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Armanino Foods of Distinction	$76.10 million	4.98	$18.80 million	$0.63	19.60
Tyson Foods	$54.44 billion	0.39	$474.00 million	$1.62	36.85

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

Profitability

This table compares Armanino Foods of Distinction and Tyson Foods’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Armanino Foods of Distinction	24.57%	46.16%	34.56%
Tyson Foods	1.03%	7.77%	3.94%

Dividends

Armanino Foods of Distinction pays an annual dividend of $0.20 per share and has a dividend yield of 1.6%. Tyson Foods pays an annual dividend of $2.04 per share and has a dividend yield of 3.4%. Armanino Foods of Distinction pays out 31.7% of its earnings in the form of a dividend. Tyson Foods pays out 125.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Tyson Foods has raised its dividend for 13 consecutive years. Tyson Foods is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

0.1% of Armanino Foods of Distinction shares are held by institutional investors. Comparatively, 67.0% of Tyson Foods shares are held by institutional investors. 30.2% of Armanino Foods of Distinction shares are held by company insiders. Comparatively, 2.1% of Tyson Foods shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

Armanino Foods of Distinction has a beta of 0.09, indicating that its share price is 91% less volatile than the S&P 500. Comparatively, Tyson Foods has a beta of 0.38, indicating that its share price is 62% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Armanino Foods of Distinction and Tyson Foods, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Armanino Foods of Distinction	0	1	1	1	3.00
Tyson Foods	1	6	5	0	2.33

Armanino Foods of Distinction presently has a consensus price target of $15.00, suggesting a potential upside of 21.46%. Tyson Foods has a consensus price target of $66.78, suggesting a potential upside of 11.86%. Given Armanino Foods of Distinction’s stronger consensus rating and higher possible upside, research analysts plainly believe Armanino Foods of Distinction is more favorable than Tyson Foods.

About Armanino Foods of Distinction

Armanino Foods of Distinction, Inc. produces and markets frozen food products in the United States. The company offers gourmet beef, Italian style beef and pork, and smoked turkey meatballs; grated parmesan and 3 cheese blend cheese; and various pesto, such as basil, artichoke, cilantro, dried tomato and garlic, roasted garlic, roasted red bell pepper, and southwest chipotle. It also provides frozen pasta, which includes beef cannelloni, cheese manicotti, cheese stuffed shells, cheese tortellini; pasta sheets, potato gnocchi, and tricolor cheese tortellini, as well as beef, butternut squash, four cheese, cheese and spinach, and wild mushroom ravioli; and various sauces, comprising creamy garlic, alfresco, Bolognese, chimichurri, harissa, and romesco. The company offers its products under the Armanino brand. It markets its products through a network of food brokers and sells to retail and foodservice distributors, club-type stores, and industrial accounts. The company was founded in 1978 and is based in Hayward, California.

About Tyson Foods

Tyson Foods, Inc., together with its subsidiaries, operates as a food company worldwide. It operates through four segments: Beef, Pork, Chicken, and Prepared Foods. The company processes live fed cattle and hogs; fabricates dressed beef and pork carcasses into primal and sub-primal meat cuts, as well as case ready beef and pork, and fully cooked meats; raises and processes chickens into fresh, frozen, and value-added chicken products, including breaded chicken strips, nuggets, patties, and other ready-to-fix or fully cooked chicken parts; and supplies poultry breeding stock. It also manufactures and markets frozen and refrigerated food products, including ready-to-eat sandwiches, flame-grilled hamburgers, Philly steaks, pepperoni, bacon, breakfast sausage, turkey, lunchmeat, hot dogs, flour and corn tortilla products, appetizers, snacks, prepared meals, ethnic foods, side dishes, meat dishes, breadsticks, and processed meats under the Tyson, Jimmy Dean, Hillshire Farm, Ball Park, Wright, Aidells, ibp, and State Fair brands. The company sells its products through its sales staff to grocery retailers, grocery wholesalers, meat distributors, warehouse club stores, military commissaries, industrial food processing companies, chain restaurants or their distributors, live markets, international export companies, and domestic distributors who serve restaurants and food service operations, such as plant and school cafeterias, convenience stores, hospitals, and other vendors, as well as through independent brokers and trading companies. The company was founded in 1935 and is headquartered in Springdale, Arkansas.