Mondelez International (NASDAQ:MDLZ) vs. Utz Brands (NYSE:UTZ) Financial Analysis

Mondelez International (NASDAQ:MDLZ) and Utz Brands (NYSE:UTZ) are both consumer staples companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.

Insider & Institutional Ownership

78.3% of Mondelez International shares are owned by institutional investors. Comparatively, 96.0% of Utz Brands shares are owned by institutional investors. 0.5% of Mondelez International shares are owned by company insiders. Comparatively, 12.7% of Utz Brands shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Mondelez International and Utz Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mondelez International	8.86%	14.07%	5.16%
Utz Brands	-2.00%	8.97%	4.32%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Mondelez International and Utz Brands, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mondelez International	0	10	17	0	2.63
Utz Brands	1	9	1	0	2.00

Mondelez International presently has a consensus price target of $68.82, indicating a potential upside of 9.18%. Utz Brands has a consensus price target of $13.39, indicating a potential downside of 6.42%. Given Mondelez International’s stronger consensus rating and higher possible upside, equities analysts plainly believe Mondelez International is more favorable than Utz Brands.

Earnings and Valuation

This table compares Mondelez International and Utz Brands”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mondelez International	$38.54 billion	2.09	$2.45 billion	$2.72	23.17
Utz Brands	$1.44 billion	1.43	$800,000.00	($0.33)	-43.35

Mondelez International has higher revenue and earnings than Utz Brands. Utz Brands is trading at a lower price-to-earnings ratio than Mondelez International, indicating that it is currently the more affordable of the two stocks.

Dividends

Mondelez International pays an annual dividend of $2.08 per share and has a dividend yield of 3.3%. Utz Brands pays an annual dividend of $0.25 per share and has a dividend yield of 1.7%. Mondelez International pays out 76.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Utz Brands pays out -75.8% of its earnings in the form of a dividend. Mondelez International has raised its dividend for 13 consecutive years and Utz Brands has raised its dividend for 3 consecutive years. Mondelez International is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

Mondelez International has a beta of 0.38, suggesting that its stock price is 62% less volatile than the S&P 500. Comparatively, Utz Brands has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500.

Summary

Mondelez International beats Utz Brands on 13 of the 17 factors compared between the two stocks.

About Mondelez International

Mondelez International, Inc., through its subsidiaries, manufactures, markets, and sells snack food and beverage products in the Latin America, North America, Asia, the Middle East, Africa, and Europe. It provides biscuits and baked snacks, including cookies, crackers, salted snacks, snack bars, and cakes and pastries; chocolates; and gums and candies, as well as various cheese and grocery, and powdered beverage products. The company's brand portfolio includes Oreo, Ritz, LU, CLIF Bar, and Tate's Bake Shop biscuits and baked snacks, as well as Cadbury Dairy Milk, Milka, and Toblerone chocolate. It serves supermarket chains, wholesalers, supercenters, club stores, mass merchandisers, distributors, convenience stores, gasoline stations, drug stores, value stores, and other retail food outlets through direct store delivery, company-owned and satellite warehouses, distribution centers, third party distributors, and other facilities, as well as through independent sales offices and agents. The company also sells products directly to businesses and consumers through e-retail platforms, retailer digital platforms, as well as through its direct-to-consumer websites and social media platforms. Mondelez International, Inc. was formerly known as Kraft Foods Inc. and changed its name to Mondelez International, Inc. in October 2012. The company was incorporated in 2000 and is headquartered in Chicago, Illinois.

About Utz Brands

Utz Brands, Inc. engages in manufacture, marketing, and distribution of snack foods. It offers a range of salty snacks, including salty snacks, including potato chips, tortilla chips, pretzels, cheese snacks, pork skins, veggie snacks, pub/party mixes, tortilla chips, salsa and dips, ready-to-eat popcorn, and other snacks under the Utz, Zapp’s, ON THE BORDER, Golden Flake, Boulder Canyon, Hawaiian, TORTIYAHS!, etc. The company sells its products to wholesale and other distributors, grocery stores, convenience and drug stores, discount stores, mass merchandisers, membership club stores, hard discounters, and specialty and e-commerce retailers. Utz Brands, Inc. was founded in 1921 and is headquartered in Hanover, Pennsylvania.