Comparing B&G Foods (NYSE:BGS) & Armanino Foods of Distinction (OTCMKTS:AMNF)

B&G Foods (NYSE:BGS) and Armanino Foods of Distinction (OTCMKTS:AMNF) are both small-cap consumer staples companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, valuation, profitability and risk.

Earnings and Valuation

This table compares B&G Foods and Armanino Foods of Distinction”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
B&G Foods	$1.93 billion	0.18	-$251.25 million	($2.83)	-1.57
Armanino Foods of Distinction	$69.40 million	4.62	$14.61 million	$0.53	19.43

Armanino Foods of Distinction has lower revenue, but higher earnings than B&G Foods. B&G Foods is trading at a lower price-to-earnings ratio than Armanino Foods of Distinction, indicating that it is currently the more affordable of the two stocks.

Dividends

B&G Foods pays an annual dividend of $0.76 per share and has a dividend yield of 17.1%. Armanino Foods of Distinction pays an annual dividend of $0.16 per share and has a dividend yield of 1.6%. B&G Foods pays out -26.9% of its earnings in the form of a dividend. Armanino Foods of Distinction pays out 30.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. B&G Foods is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares B&G Foods and Armanino Foods of Distinction’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
B&G Foods	-12.02%	7.16%	1.34%
Armanino Foods of Distinction	23.37%	48.23%	33.09%

Analyst Ratings

This is a breakdown of recent ratings and price targets for B&G Foods and Armanino Foods of Distinction, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
B&G Foods	1	4	0	0	1.80
Armanino Foods of Distinction	0	0	0	0	0.00

B&G Foods currently has a consensus price target of $6.10, indicating a potential upside of 37.39%. Given B&G Foods’ stronger consensus rating and higher possible upside, equities research analysts clearly believe B&G Foods is more favorable than Armanino Foods of Distinction.

Institutional & Insider Ownership

66.2% of B&G Foods shares are held by institutional investors. Comparatively, 0.1% of Armanino Foods of Distinction shares are held by institutional investors. 4.0% of B&G Foods shares are held by company insiders. Comparatively, 30.2% of Armanino Foods of Distinction shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

B&G Foods has a beta of 0.46, suggesting that its share price is 54% less volatile than the S&P 500. Comparatively, Armanino Foods of Distinction has a beta of 0.2, suggesting that its share price is 80% less volatile than the S&P 500.

Summary

Armanino Foods of Distinction beats B&G Foods on 8 of the 15 factors compared between the two stocks.

About B&G Foods

B&G Foods, Inc. is a holding company, which engages in the manufacture, sale, and distribution of shelf-stable frozen food, and household products in the U.S., Canada, and Puerto Rico. It operates through the following segments: Specialty, Meals, Frozen & Vegetables, and Spices & Flavor Solutions. The Specialty segment includes, among others, the Crisco, Clabber Girl, Bear Creek, Polaner, Underwood, B&G, Grandma’s, New York Style, Don Pepino, Sclafani, B&M, Baker’s Joy, Regina, TrueNorth, Static Guard, SugarTwin and Brer Rabbit brands. The Meals segment focuses on the Ortega, Maple Grove Farms, Cream of Wheat, Las Palmas, Victoria, Mama Mary’s, Spring Tree, McCann’s, Carey’s and Vermont Maid brands. The Frozen & Vegetables segment consists of Green Giant and Le Sueur brands. The Spices & Flavor Solutions segment offers Dash, Spice Islands, Weber, Ac’cent, Tone’s, Trappey’s, Durkee and Wright’s brands. Its products include frozen and canned vegetables, hot cereals, fruit spreads, canned meats and beans, bagel chips, spices, seasonings, hot sauces, and wine vinegar. Its brands include Back to Nature, Bear Creek, Cream of Wheat, Green Giant, Mrs. Dash, and Ortega. The company was founded in 1889 and is headquartered in Parsippany, NJ.

About Armanino Foods of Distinction

Armanino Foods of Distinction, Inc. produces and markets frozen food products in the United States. The company offers gourmet beef, Italian style beef and pork, and smoked turkey meatballs; grated parmesan and 3 cheese blend cheese; and various pesto, such as basil, artichoke, cilantro, dried tomato and garlic, roasted garlic, roasted red bell pepper, and southwest chipotle. It also provides frozen pasta, which includes beef cannelloni, cheese manicotti, cheese stuffed shells, cheese tortellini; pasta sheets, potato gnocchi, and tricolor cheese tortellini, as well as beef, butternut squash, four cheese, cheese and spinach, and wild mushroom ravioli; and various sauces, comprising creamy garlic, alfresco, Bolognese, chimichurri, harissa, and romesco. The company offers its products under the Armanino brand. It markets its products through a network of food brokers and sells to retail and foodservice distributors, club-type stores, and industrial accounts. The company was founded in 1978 and is based in Hayward, California.