Head to Head Survey: Lamb Weston (NYSE:LW) versus Tiger Brands (OTCMKTS:TBLMY)

Tiger Brands (OTCMKTS:TBLMY) and Lamb Weston (NYSE:LW) are both consumer staples companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, analyst recommendations, valuation, risk and dividends.

Valuation & Earnings

This table compares Tiger Brands and Lamb Weston”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tiger Brands	N/A	N/A	N/A	$12.31	0.88
Lamb Weston	$6.61 billion	1.10	$290.00 million	$2.08	25.42

Lamb Weston has higher revenue and earnings than Tiger Brands. Tiger Brands is trading at a lower price-to-earnings ratio than Lamb Weston, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Tiger Brands and Lamb Weston’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tiger Brands	N/A	N/A	N/A
Lamb Weston	4.39%	23.33%	5.72%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Tiger Brands and Lamb Weston, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tiger Brands	0	0	0	0	0.00
Lamb Weston	0	11	3	0	2.21

Lamb Weston has a consensus price target of $53.36, suggesting a potential upside of 0.94%. Given Lamb Weston’s stronger consensus rating and higher probable upside, analysts clearly believe Lamb Weston is more favorable than Tiger Brands.

Insider & Institutional Ownership

0.3% of Tiger Brands shares are owned by institutional investors. Comparatively, 89.6% of Lamb Weston shares are owned by institutional investors. 1.0% of Lamb Weston shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

Tiger Brands pays an annual dividend of $0.51 per share and has a dividend yield of 4.7%. Lamb Weston pays an annual dividend of $1.52 per share and has a dividend yield of 2.9%. Tiger Brands pays out 4.1% of its earnings in the form of a dividend. Lamb Weston pays out 73.1% 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. Lamb Weston has increased its dividend for 7 consecutive years. Tiger Brands is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Lamb Weston beats Tiger Brands on 11 of the 14 factors compared between the two stocks.

About Tiger Brands

Tiger Brands Limited engages in the manufacture and sale of fast-moving consumer goods in South Africa. The company offers baby care products under the Purity brand; bakeries under the Albany and Tinkies brands; and culinary fruit veg products under the Crosse & Blackwell, Benny, All Gold, Spray and Cook, Ice Cap, KOO, Colman's, Black Cat, Mrs H.S. Ball, and Hugo's brands. It provides home care products under the Airoma, Bio Classic, Bio Classic, Doom, Jeyes, and Peaceful Sleep brands; milling products under the Golden Cloud and Ace brands; rice pasta under the Fatti's and Moni's, Cresta, Tastic, and Aunt Caroline brands; and superfoods under the Ace, Jungle, King Korn, and Morvite brands. In addition, the company offers personal care products under the Dolly Varden, Kair, No Hair, Perfect Touch, Status, and Ingram's brands; and snacks, treats, and beverages under the Beacon, Maynards, Hall's, Sparkles, Allsorts, Oros, Jelly Tots, Toff-O-Luxe, fizzer, Fizz Pop, Smoothies, Rose's, Easter, and Energade brands. Further, it provides out of home solutions and product offerings in various pack formats to franchised restaurant groups, hotel groups, catering groups, airlines, and institutions; and product solutions for the establishment cleaning, pest control, and room air refreshing. It exports its products to approximately 55 countries worldwide. Tiger Brands Limited was founded in 1920 and is headquartered in Bryanston, South Africa.

About Lamb Weston

Lamb Weston Holdings, Inc. produces, distributes, and markets frozen potato products worldwide. The company operates through four segments: Global, Foodservice, Retail, and Other. It offers frozen potatoes, commercial ingredients, and appetizers under the Lamb Weston brand, as well as under various customer labels. The company also provides its products under its owned or licensed brands, such as Grown in Idaho and Alexia, and other licensed brands, as well as under retailers' own brands. In addition, it engages in the vegetable and dairy businesses. The company sells its products through a network of internal sales personnel and independent brokers, agents, and distributors to chain restaurants, wholesale, grocery, mass merchants, club and specialty retailers, businesses, educational institutions, independent restaurants, regional chain restaurants, and convenience stores. Lamb Weston Holdings, Inc. was incorporated in 1950 and is headquartered in Eagle, Idaho.