Financial Review: Seneca Foods (NASDAQ:SENEA) & United Natural Foods (NYSE:UNFI)

United Natural Foods (NYSE:UNFIGet Free Report) and Seneca Foods (NASDAQ:SENEAGet Free Report) are both consumer staples companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, institutional ownership, dividends, earnings, analyst recommendations and valuation.

Profitability

This table compares United Natural Foods and Seneca Foods’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
United Natural Foods -0.12% 7.42% 1.57%
Seneca Foods 6.91% 14.05% 7.84%

Analyst Recommendations

This is a summary of current ratings and recommmendations for United Natural Foods and Seneca Foods, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
United Natural Foods 1 5 3 1 2.40
Seneca Foods 0 0 1 1 3.50

United Natural Foods currently has a consensus price target of $46.38, suggesting a potential downside of 5.96%. Given United Natural Foods’ higher possible upside, research analysts clearly believe United Natural Foods is more favorable than Seneca Foods.

Valuation and Earnings

This table compares United Natural Foods and Seneca Foods”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
United Natural Foods $31.78 billion 0.09 -$118.00 million ($0.66) -74.72
Seneca Foods $1.66 billion 0.70 $114.67 million $16.60 10.34

Seneca Foods has lower revenue, but higher earnings than United Natural Foods. United Natural Foods is trading at a lower price-to-earnings ratio than Seneca Foods, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

United Natural Foods has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500. Comparatively, Seneca Foods has a beta of -0.07, meaning that its share price is 107% less volatile than the S&P 500.

Institutional and Insider Ownership

87.6% of United Natural Foods shares are owned by institutional investors. Comparatively, 42.5% of Seneca Foods shares are owned by institutional investors. 2.4% of United Natural Foods shares are owned by company insiders. Comparatively, 8.2% of Seneca Foods shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Seneca Foods beats United Natural Foods on 9 of the 14 factors compared between the two stocks.

About United Natural Foods

(Get Free Report)

United Natural Foods, Inc., together with its subsidiaries, distributes natural, organic, specialty, produce, and conventional grocery and non-food products in the United States and Canada. It operates in two segments, Wholesale and Retail. The company offers grocery and general merchandise, produce, perishables and frozen foods, wellness and personal care items, and bulk and foodservice products. It also provides nuts, dried fruit, seeds, trail mixes, granola, natural and organic snack items, and confections under the Woodstock Farms Manufacturing name; organic, non-GMO project verified, and specialty food and non-food items under the Blue Marble brand name; pet food under the WILD HARVEST brand name; and various products under the ESSENTIAL EVERYDAY, SHOPPERS VALUE, Field Day, EQUALINE, CULINARY CIRCLE, and STONE RIDGE CREAMERY brand names. In addition, the company provides home, health and beauty care, and pharmacy products, as well as private label products through a network of Cub Foods and Shoppers retail grocery stores; and retail store support, pricing strategy, shelf and planogram management, advertising, couponing, ecommerce, consumer convenience, store design, equipment sourcing, electronic payments processing, network and data hosting, point-of-sale hardware and software, automation tools, sustainability, and administrative back-office solution services. Further, it offers consumer and trade marketing programs, and programs to support suppliers in understanding its markets. The company serves chains, independent retailers, and supernatural chains, as well as foodservice, ecommerce, conventional military business, and other sales customers. United Natural Foods, Inc. was founded in 1976 and is headquartered in Providence, Rhode Island.

About Seneca Foods

(Get Free Report)

Seneca Foods Corporation provides packaged fruits and vegetables in the United States and internationally. The company offers canned, frozen, and jarred produce; jarred fruit; and snack chips and other food products under the private label, as well as under various national and regional brands that the company owns or licenses, including Seneca, Libby’s, Aunt Nellie’s, Cherryman, Green Valley, and READ. In addition, it packs canned and frozen vegetables under contract packing agreements. Further, the company engages in the sale of cans, ends, and seeds, as well as trucking and aircraft operations. It provides its products to grocery outlets, including supermarkets, mass merchandisers, limited assortment stores, club stores, and dollar stores; specialty retailers; and food service distributors, restaurant chains, industrial markets, other food packagers, and export customers in approximately 55 countries, as well as federal, state, and local governments for school and other feeding programs. Seneca Foods Corporation was incorporated in 1949 and is headquartered in Fairport, New York.

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