Lamb Weston (NYSE:LW – Get Free Report) and S&W Seed (NASDAQ:SANW – Get Free Report) are both consumer staples companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, profitability, dividends, valuation, analyst recommendations and institutional ownership.
Institutional and Insider Ownership
89.6% of Lamb Weston shares are owned by institutional investors. Comparatively, 61.7% of S&W Seed shares are owned by institutional investors. 1.0% of Lamb Weston shares are owned by company insiders. Comparatively, 11.4% of S&W Seed shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Lamb Weston and S&W Seed”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Lamb Weston | $6.61 billion | 1.03 | $290.00 million | $2.08 | 23.74 |
| S&W Seed | $54.99 million | 0.00 | -$30.03 million | ($7.72) | -0.00 |
Lamb Weston has higher revenue and earnings than S&W Seed. S&W Seed is trading at a lower price-to-earnings ratio than Lamb Weston, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent recommendations for Lamb Weston and S&W Seed, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Lamb Weston | 0 | 11 | 3 | 0 | 2.21 |
| S&W Seed | 0 | 0 | 0 | 0 | 0.00 |
Lamb Weston presently has a consensus price target of $53.36, suggesting a potential upside of 8.09%. Given Lamb Weston’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Lamb Weston is more favorable than S&W Seed.
Profitability
This table compares Lamb Weston and S&W Seed’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Lamb Weston | 4.39% | 23.33% | 5.72% |
| S&W Seed | -85.38% | -50.81% | -17.71% |
Risk and Volatility
Lamb Weston has a beta of 0.47, indicating that its stock price is 53% less volatile than the S&P 500. Comparatively, S&W Seed has a beta of -1.21, indicating that its stock price is 221% less volatile than the S&P 500.
Summary
Lamb Weston beats S&W Seed on 13 of the 14 factors compared between the two stocks.
About Lamb Weston
Lamb Weston Holdings, Inc. produces, distributes, and markets frozen potato products worldwide. The company operates through four segments: Global, Foodservice, Retail, and Other. It offers frozen potatoes, commercial ingredients, and appetizers under the Lamb Weston brand, as well as under various customer labels. The company also provides its products under its owned or licensed brands, such as Grown in Idaho and Alexia, and other licensed brands, as well as under retailers' own brands. In addition, it engages in the vegetable and dairy businesses. The company sells its products through a network of internal sales personnel and independent brokers, agents, and distributors to chain restaurants, wholesale, grocery, mass merchants, club and specialty retailers, businesses, educational institutions, independent restaurants, regional chain restaurants, and convenience stores. Lamb Weston Holdings, Inc. was incorporated in 1950 and is headquartered in Eagle, Idaho.
About S&W Seed
S&W Seed Co. engages in the breeding, production, and sale of stevia and alfalfa seeds. The company was founded in 1980 and is headquartered in Longmont, CO.
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