Head-To-Head Contrast: Sysco (NYSE:SYY) vs. Tate & Lyle (OTCMKTS:TATYY)

Sysco (NYSE:SYY) and Tate & Lyle (OTCMKTS:TATYY) are both consumer staples companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Valuation and Earnings

This table compares Sysco and Tate & Lyle”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sysco	$81.37 billion	0.46	$1.83 billion	$3.61	21.80
Tate & Lyle	$2.69 billion	1.25	$130.03 million	N/A	N/A

Sysco has higher revenue and earnings than Tate & Lyle.

Profitability

This table compares Sysco and Tate & Lyle’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sysco	2.08%	103.57%	8.06%
Tate & Lyle	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent recommendations for Sysco and Tate & Lyle, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sysco	0	7	9	0	2.56
Tate & Lyle	1	4	0	0	1.80

Sysco currently has a consensus target price of $88.15, indicating a potential upside of 12.04%. Given Sysco’s stronger consensus rating and higher possible upside, equities analysts plainly believe Sysco is more favorable than Tate & Lyle.

Volatility & Risk

Sysco has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500. Comparatively, Tate & Lyle has a beta of 0.4, indicating that its share price is 60% less volatile than the S&P 500.

Institutional and Insider Ownership

83.4% of Sysco shares are held by institutional investors. 0.6% of Sysco shares are held by insiders. Comparatively, 0.2% of Tate & Lyle shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Sysco pays an annual dividend of $2.16 per share and has a dividend yield of 2.7%. Tate & Lyle pays an annual dividend of $0.64 per share and has a dividend yield of 2.1%. Sysco pays out 59.8% of its earnings in the form of a dividend. Sysco has increased its dividend for 57 consecutive years. Sysco is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Sysco beats Tate & Lyle on 13 of the 15 factors compared between the two stocks.

About Sysco

Sysco Corporation, through its subsidiaries, engages in the marketing and distribution of various food and related products to the foodservice or food-away-from-home industry in the United States, Canada, the United Kingdom, France, and internationally. It operates through U.S. Foodservice Operations, International Foodservice Operations, SYGMA, and Other segments. The company distributes frozen food, such as meat, seafood, fully prepared entrées, fruits, vegetables, and desserts; canned and dry food products; fresh meat and seafood products; dairy products; beverages; imported specialties; and fresh produce products. It also supplies various non-food items, including paper products comprising disposable napkins, plates, and cups; tableware consisting of glassware and silverware; cookware, such as pots, pans, and utensils; restaurant and kitchen equipment and supplies; and cleaning supplies. The company serves restaurants, hospitals and nursing facilities, schools and colleges, hotels and motels, industrial caterers, and other foodservice venues. Sysco Corporation was incorporated in 1969 and is headquartered in Houston, Texas.

About Tate & Lyle

Tate & Lyle PLC, together with its subsidiaries, provides ingredients and solutions to the food, beverage, and other industries in the United States, the United Kingdom, other European countries, and internationally. It operates through three segments: Food & Beverage Solutions, Sucralose, and Primary Products. The company offers dairy products, soups, sauces, and dressings; bakery products and snacks; texturants; nutritive sweeteners, such as high fructose corn syrup and dextrose; fibres; and stabilizers and functional systems. It also provides industrial starches; acidulants, such as citric acid; and commodities comprising corn gluten feed, meal, and corn oil. The company was incorporated in 1903 and is headquartered in London, the United Kingdom.