Lifeway Foods (NASDAQ:LWAY – Get Free Report) and Smithfield Foods (NASDAQ:SFD – Get Free Report) are both consumer staples companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, earnings, risk and valuation.
Earnings & Valuation
This table compares Lifeway Foods and Smithfield Foods”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Lifeway Foods | $212.50 million | 1.62 | $13.86 million | $0.70 | 32.49 |
| Smithfield Foods | $15.53 billion | 0.49 | $987.00 million | $2.28 | 8.55 |
Smithfield Foods has higher revenue and earnings than Lifeway Foods. Smithfield Foods is trading at a lower price-to-earnings ratio than Lifeway Foods, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
36.4% of Lifeway Foods shares are held by institutional investors. 18.6% of Lifeway Foods shares are held by insiders. Comparatively, 1.8% of Smithfield Foods shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Lifeway Foods and Smithfield Foods’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Lifeway Foods | 4.48% | 12.66% | 9.29% |
| Smithfield Foods | 5.94% | 13.41% | 7.68% |
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Lifeway Foods and Smithfield Foods, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Lifeway Foods | 0 | 1 | 2 | 1 | 3.00 |
| Smithfield Foods | 3 | 1 | 3 | 0 | 2.00 |
Lifeway Foods presently has a consensus price target of $34.00, suggesting a potential upside of 49.49%. Smithfield Foods has a consensus price target of $24.67, suggesting a potential upside of 26.46%. Given Lifeway Foods’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Lifeway Foods is more favorable than Smithfield Foods.
Risk & Volatility
Lifeway Foods has a beta of 0.51, meaning that its share price is 49% less volatile than the S&P 500. Comparatively, Smithfield Foods has a beta of -0.39, meaning that its share price is 139% less volatile than the S&P 500.
Summary
Lifeway Foods beats Smithfield Foods on 9 of the 15 factors compared between the two stocks.
About Lifeway Foods
Lifeway Foods, Inc. produces and markets probiotic-based products in the United States and internationally. Its primary product is drinkable kefir, a cultured dairy product in various organic and non-organic sizes, flavors, and types. The company offers European-style soft cheeses; cream and other products; ProBugs, a line of kefir products designed for children; drinkable yogurt; and fresh made butter and sour cream. It sells its products under the Lifeway, GlenOaks Farms, and Fresh Made brand names, as well as under private labels on behalf of customers primarily through direct sales force, brokers, and distributors. Lifeway Foods, Inc. was incorporated in 1986 and is based in Morton Grove, Illinois.
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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