Bunzl (OTCMKTS:BZLFY) versus Ingredion (NYSE:INGR) Head to Head Analysis

Ingredion (NYSE:INGR) and Bunzl (OTCMKTS:BZLFY) are both consumer staples companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.

Dividends

Ingredion pays an annual dividend of $3.28 per share and has a dividend yield of 2.9%. Bunzl pays an annual dividend of $0.25 per share and has a dividend yield of 1.6%. Ingredion pays out 29.4% of its earnings in the form of a dividend. Ingredion has raised its dividend for 14 consecutive years. Ingredion is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

Ingredion has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500. Comparatively, Bunzl has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500.

Insider and Institutional Ownership

85.3% of Ingredion shares are owned by institutional investors. Comparatively, 0.1% of Bunzl shares are owned by institutional investors. 2.3% of Ingredion shares are owned by insiders. Comparatively, 1.0% of Bunzl shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Ingredion and Bunzl’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ingredion	10.10%	17.32%	9.37%
Bunzl	N/A	N/A	N/A

Earnings & Valuation

This table compares Ingredion and Bunzl”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ingredion	$7.22 billion	1.00	$729.00 million	$11.16	10.21
Bunzl	$15.62 billion	0.66	$605.55 million	N/A	N/A

Ingredion has higher earnings, but lower revenue than Bunzl.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Ingredion and Bunzl, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ingredion	0	7	2	0	2.22
Bunzl	0	6	0	0	2.00

Ingredion currently has a consensus target price of $126.14, indicating a potential upside of 10.67%. Given Ingredion’s stronger consensus rating and higher probable upside, equities analysts plainly believe Ingredion is more favorable than Bunzl.

Summary

Ingredion beats Bunzl on 12 of the 15 factors compared between the two stocks.

About Ingredion

Ingredion Incorporated, together with its subsidiaries, manufactures and sells sweeteners, starches, nutrition ingredients, and biomaterial solutions derived from wet milling and processing corn, and other starch-based materials to a range of industries in North America, South America, the Asia Pacific, Europe, the Middle East, and Africa. The company offers starch products for use in a range of processed foods; cornstarch; specialty paper starches for enhanced drainage, fiber retention, oil and grease resistance, improved printability, and biochemical oxygen demand control; starches and specialty starches for textile industry; industrial starches are used in the production of construction materials, textiles, adhesives, pharmaceuticals, and cosmetics, as well as in mining and water filtration; and specialty industrial starches for use in biomaterial applications, including biodegradable plastics, fabric softeners and detergents, hair and skin care applications, dusting powders for surgical gloves, and in the production of glass fiber and insulation. It also provides sweetener products comprising glucose syrups, high maltose syrup, high fructose corn syrup, dextrose, polyols, maltodextrin, glucose syrup solids, and non-genetically modified organism syrups for applications in food and beverage products, such as baked goods, snack foods, canned fruits, condiments, candy and other sweets, dairy products, ice cream, jams and jellies, prepared mixes, table syrups, and beverages. In addition, the company sells refined corn oil, corn gluten feed, and corn gluten meal; and other products, including fruit and vegetable products, such as concentrates, purees, and essences, as well as pulse proteins and hydrocolloids systems and blends. The company was formerly known as Corn Products International, Inc. and changed its name to Ingredion Incorporated in June 2012. Ingredion Incorporated was founded in 1906 and is headquartered in Westchester, Illinois.

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.