US Foods (NYSE:USFD – Get Free Report) and BellRing Brands (NYSE:BRBR – Get Free Report) are both consumer staples companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, profitability, dividends, earnings, institutional ownership and risk.
Profitability
This table compares US Foods and BellRing Brands’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| US Foods | 1.43% | 17.71% | 5.88% |
| BellRing Brands | 9.33% | -95.87% | 29.63% |
Earnings and Valuation
This table compares US Foods and BellRing Brands”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| US Foods | $37.88 billion | 0.49 | $494.00 million | $2.40 | 34.81 |
| BellRing Brands | $2.32 billion | 1.28 | $216.20 million | $1.68 | 14.79 |
US Foods has higher revenue and earnings than BellRing Brands. BellRing Brands is trading at a lower price-to-earnings ratio than US Foods, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
US Foods has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500. Comparatively, BellRing Brands has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings for US Foods and BellRing Brands, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| US Foods | 0 | 2 | 9 | 0 | 2.82 |
| BellRing Brands | 1 | 6 | 11 | 0 | 2.56 |
US Foods presently has a consensus target price of $90.00, indicating a potential upside of 7.71%. BellRing Brands has a consensus target price of $40.25, indicating a potential upside of 62.00%. Given BellRing Brands’ higher probable upside, analysts plainly believe BellRing Brands is more favorable than US Foods.
Institutional and Insider Ownership
98.8% of US Foods shares are owned by institutional investors. Comparatively, 95.0% of BellRing Brands shares are owned by institutional investors. 0.6% of US Foods shares are owned by company insiders. Comparatively, 1.5% of BellRing Brands shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Summary
US Foods beats BellRing Brands on 8 of the 14 factors compared between the two stocks.
About US Foods
US Foods Holding Corp., together with its subsidiaries, engages in marketing, sale, and distribution of fresh, frozen, and dry food and non-food products to foodservice customers in the United States. The company's customers include independently owned single and multi-unit restaurants, regional concepts, national restaurant chains, hospitals, nursing homes, hotels and motels, country clubs, government and military organizations, colleges and universities, and retail locations. The company was formerly known as USF Holding Corp. and changed its name to US Foods Holding Corp. in February 2016. US Foods Holding Corp. was incorporated in 2007 and is headquartered in Rosemont, Illinois.
About BellRing Brands
BellRing Brands, Inc., together with its subsidiaries, provides various nutrition products in the United States. The company offers ready-to-drink (RTD) protein shakes, other RTD beverages, powders, nutrition bars, and other products primarily under the Premier Protein and Dymatize brands. It distributes its products through club, food, drug, mass, eCommerce, specialty, and convenience channels. BellRing Brands, Inc. was incorporated in 2019 and is headquartered in Saint Louis, Missouri.
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