Hormel Foods (NYSE: HRL) and Senomyx (NASDAQ:SNMX) are both consumer staples companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, dividends, analyst recommendations and risk.
Insider & Institutional Ownership
39.4% of Hormel Foods shares are owned by institutional investors. Comparatively, 29.6% of Senomyx shares are owned by institutional investors. 1.5% of Hormel Foods shares are owned by insiders. Comparatively, 12.4% of Senomyx shares are owned by 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.
This is a breakdown of current recommendations for Hormel Foods and Senomyx, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Hormel Foods presently has a consensus target price of $34.33, suggesting a potential upside of 2.27%. Senomyx has a consensus target price of $2.00, suggesting a potential upside of 92.31%. Given Senomyx’s higher probable upside, analysts clearly believe Senomyx is more favorable than Hormel Foods.
This table compares Hormel Foods and Senomyx’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Hormel Foods and Senomyx’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Hormel Foods||$9.17 billion||1.94||$846.73 million||$1.70||19.75|
|Senomyx||$29.32 million||1.70||-$1.26 million||($0.03)||-34.67|
Hormel Foods has higher revenue and earnings than Senomyx. Senomyx is trading at a lower price-to-earnings ratio than Hormel Foods, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Hormel Foods has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500. Comparatively, Senomyx has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500.
Hormel Foods pays an annual dividend of $0.75 per share and has a dividend yield of 2.2%. Senomyx does not pay a dividend. Hormel Foods pays out 44.1% of its earnings in the form of a dividend. Hormel Foods has increased its dividend for 51 consecutive years.
Hormel Foods beats Senomyx on 12 of the 16 factors compared between the two stocks.
About Hormel Foods
Hormel Foods Corporation is engaged in the production of a range of meat and food products. The Company operates through four segments: Grocery Products, which is engaged in the processing, marketing and sale of shelf-stable food products sold for the retail market and health and also consists of nutrition products, including Muscle Milk protein products.; Refrigerated Foods, which consists of the processing, marketing and sale of branded and unbranded pork, beef, chicken and turkey products for retail, foodservice and fresh product customers; Jennie-O Turkey Store (JOTS), which consists of the processing, marketing and sale of branded and unbranded turkey products for retail, foodservice and fresh product customers; and International & Other, which includes Hormel Foods International Corporation, which manufactures, markets and sells the Company products internationally.
Senomyx, Inc. is focused on using taste receptor technologies to discover, develop and commercialize flavor ingredients for the packaged food, beverage and ingredient supply industries. The Company operates through development and commercialization of flavor ingredients segment. It is engaged in the discovery, development and/or commercialization of flavor ingredients through over five programs. The Sweet Taste Program is focused on developing flavor ingredients or discovering natural sweeteners. The Savory Flavor Program is focused at flavor ingredients to be used in product categories, such as ready meals, sauces, soups and snack foods. The Bitter Blocker Program is focused on flavor ingredients used in products that contain bitter tastants. The Cooling Taste Program is focused at flavor ingredients used in products that consist of cooling agents. The salt taste modifier program is focused on reduction of the level of salt contained in packaged food and beverage products.
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