Calbee (OTCMKTS:CBCFF – Get Free Report) and Smithfield Foods (NASDAQ:SFD – Get Free Report) are both consumer staples companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.
Dividends
Calbee pays an annual dividend of $17.53 per share and has a dividend yield of 76.2%. Smithfield Foods pays an annual dividend of $1.25 per share and has a dividend yield of 5.5%. Calbee pays out 17.5% of its earnings in the form of a dividend. Smithfield Foods pays out 46.6% 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. Calbee is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Ratings
This is a summary of current ratings and recommmendations for Calbee and Smithfield Foods, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Calbee | 1 | 0 | 0 | 0 | 1.00 |
| Smithfield Foods | 1 | 0 | 5 | 0 | 2.67 |
Valuation & Earnings
This table compares Calbee and Smithfield Foods”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Calbee | N/A | N/A | N/A | $100.17 | 0.23 |
| Smithfield Foods | $15.53 billion | 0.57 | $987.00 million | $2.68 | 8.44 |
Smithfield Foods has higher revenue and earnings than Calbee. Calbee is trading at a lower price-to-earnings ratio than Smithfield Foods, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
11.4% of Calbee shares are owned by institutional investors. 1.8% of Smithfield Foods shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Profitability
This table compares Calbee and Smithfield Foods’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Calbee | N/A | N/A | N/A |
| Smithfield Foods | 6.84% | 15.55% | 8.84% |
Summary
Smithfield Foods beats Calbee on 9 of the 13 factors compared between the two stocks.
About Calbee
Calbee, Inc. engages in the production and sale of snacks and other food products in Japan, North America, Greater China, the United Kingdom, Indonesia, and internationally. It offers potato-based, flour-based, corn-and bean-based, and other food snacks, as well as wheat, cereals, and granola. The company markets its products under the Potato Chips, JagaRico, Harvest Snaps, Honey Butter Chip, Kappa Ebisen, Seabrook, Sapporo Potato, Sayaendo, Jagabee, and the Frugra brands. It sells its products through e-commerce and retail stores. Calbee, Inc. was incorporated in 1949 and is headquartered in Tokyo, Japan.
About Smithfield Foods
Smithfield Foods, Inc. produces and markets a variety of fresh meat and packaged meats products both domestically and internationally. The Company operates in four segments: Pork, Hog Production, International and Corporate, each of which consists of a number of subsidiaries, joint ventures and other investments. The Pork segment consists mainly of its three wholly owned United States fresh pork and packaged meats subsidiaries: The Smithfield Packing Company, Inc. (Smithfield Packing), Farmland Foods, Inc. (Farmland Foods) and John Morrell Food Group (John Morrell). The Hog Production segment consists of the Company’s hog production operations located in the United States. On September 2012 (fiscal 2013), the Company acquired a 70% controlling interest in American Skin Food Group, LLC. Effective September 26, 2013, Shuanghui International Holdings Ltd merged with Smithfield Foods Inc, a producer and wholesaler of pork meat products.
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