Financial Review: Bunzl (OTCMKTS:BZLFY) versus Associated British Foods (OTCMKTS:ASBFY)

Bunzl (OTCMKTS:BZLFY) and Associated British Foods (OTCMKTS:ASBFY) are both large-cap consumer staples companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, profitability, institutional ownership, valuation and risk.

Insider and Institutional Ownership

0.1% of Bunzl shares are held by institutional investors. 1.0% of Bunzl 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.

Analyst Ratings

This is a breakdown of current recommendations for Bunzl and Associated British Foods, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bunzl	0	5	1	3	2.78
Associated British Foods	1	1	0	0	1.50

Profitability

This table compares Bunzl and Associated British Foods’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bunzl	N/A	N/A	N/A
Associated British Foods	N/A	N/A	N/A

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bunzl	$15.05 billion	0.71	$640.23 million	N/A	N/A
Associated British Foods	$26.11 billion	0.82	$1.85 billion	N/A	N/A

Associated British Foods has higher revenue and earnings than Bunzl.

Volatility and Risk

Bunzl has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500. Comparatively, Associated British Foods has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500.

Dividends

Bunzl pays an annual dividend of $0.25 per share and has a dividend yield of 1.5%. Associated British Foods pays an annual dividend of $0.46 per share and has a dividend yield of 1.5%.

About Bunzl

Bunzl plc operates as a distribution and services company in the North America, Continental Europe, the United Kingdom, Ireland, and internationally. The company offers food packaging, films, labels, cleaning and hygiene supplies, and personal protection equipment to grocery stores, supermarkets, and convenience stores. It also provides food packaging, disposable tableware, guest amenities, catering equipment, agricultural supplies, cleaning and hygiene products, and safety items to hotels, restaurants, contract caterers, food processors, commercial growers, and the leisure sector; and gloves, boots, hard hats, ear and eye protection, and other workwear, as well as cleaning and hygiene supplies, and asset protection products to industrial and construction, and ecommerce sectors. In addition, the company offers chemicals and hygiene paper to cleaning and facilities management companies, and industrial and public sector customers; gloves, masks, swabs, gowns, bandages, and other healthcare related equipment; and healthcare devices to hospitals, care homes, and other facilities serving the healthcare sector. Further, it provides packaging and other store supplies to retail chains, boutiques, department stores, home improvement chains, office supply companies, and related e-commerce sales channels. Bunzl plc was founded in 1854 and is headquartered in London, the United Kingdom.

About Associated British Foods

Associated British Foods plc operates as a diversified food, ingredients, and retail company worldwide. It operates through five segments: Grocery, Ingredients, Agriculture, Sugar, and Retail. The Grocery segment manufactures and sells grocery products, including hot beverages, sugar and sweeteners, vegetable oils, balsamic vinegars, bread and baked goods, cereals, ethnic foods, and meat products to retail, wholesale, and foodservice businesses. The Ingredients segment manufactures bakers' yeast, bakery ingredients, enzymes, lipids, yeast extracts, and cereal specialties. The Agriculture segment manufactures and sells animal feeds; and provides other products and services for the agriculture sector. The Sugar segment is involved in growing, processing, and selling sugar beet and sugar cane to industrial users. The Retail segment is involved in buying and merchandising clothing and accessories through the Primark and Penneys retail chains, which offer women's, men's, and kids wear, as well as beauty, homeware, and accessories. The company was incorporated in 1934 and is headquartered in London, the United Kingdom. Associated British Foods plc operates as a subsidiary of Wittington Investments Limited.