Financial Contrast: Campbell’s (NASDAQ:CPB) versus Local Bounti (NYSE:LOCL)

Campbell’s (NASDAQ:CPB) and Local Bounti (NYSE:LOCL) are both consumer staples companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Campbell’s and Local Bounti, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Campbell’s	7	13	0	0	1.65
Local Bounti	1	0	0	0	1.00

Campbell’s currently has a consensus target price of $19.88, indicating a potential upside of 4.61%. Given Campbell’s’ stronger consensus rating and higher possible upside, equities analysts plainly believe Campbell’s is more favorable than Local Bounti.

Institutional and Insider Ownership

52.3% of Campbell’s shares are owned by institutional investors. Comparatively, 28.0% of Local Bounti shares are owned by institutional investors. 19.8% of Campbell’s shares are owned by company insiders. Comparatively, 14.2% of Local Bounti shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

Campbell’s has a beta of 0.06, meaning that its share price is 94% less volatile than the S&P 500. Comparatively, Local Bounti has a beta of 2.81, meaning that its share price is 181% more volatile than the S&P 500.

Valuation and Earnings

This table compares Campbell’s and Local Bounti”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Campbell’s	$9.74 billion	0.58	$403.00 million	$1.31	14.50
Local Bounti	$48.37 million	0.52	-$94.38 million	($2.77)	-0.39

Campbell’s has higher revenue and earnings than Local Bounti. Local Bounti is trading at a lower price-to-earnings ratio than Campbell’s, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Campbell’s and Local Bounti’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Campbell’s	4.04%	16.44%	4.25%
Local Bounti	-130.52%	N/A	-16.45%

Summary

Campbell’s beats Local Bounti on 12 of the 13 factors compared between the two stocks.

About Campbell’s

The Campbell’s Company, formerly known as Campbell Soup Company, together with its subsidiaries, manufactures and markets food and beverage products in the United States and internationally. The company operates through Meals & Beverages and Snacks segments. The Meals & Beverages segment engages in the retail and foodservice businesses in the United States and Canada. This segment provides Campbell’s condensed and ready-to-serve soups; Swanson broth and stocks; Pacific Foods broth, soups, and non-dairy beverages; Prego pasta sauces; Pace Mexican sauces; Campbell’s gravies, pasta, beans, and dinner sauces; Swanson canned poultry; V8 juices and beverages; Campbell’s tomato juice; and snacking products in foodservice in Canada. The Snacks segment retails Pepperidge Farm cookies, crackers, fresh bakery, and frozen products, which include Goldfish crackers, Snyder’s of Hanover pretzels, Lance sandwich crackers, Cape Cod and Kettle Brand potato chips, Late July snacks, Snack Factory pretzel crisps, Pop Secret popcorn, and other snacking products. This segment is also involved in the retail business in Latin America. It sells its products through retail food chains, mass discounters and merchandisers, club stores, convenience stores, drug stores, and dollar stores, as well as e-commerce and other retail, commercial, and non-commercial establishments, and independent contractor distributors. The company was founded in 1869 and is headquartered in Camden, New Jersey.

About Local Bounti

Local Bounti Corporation grows and packs fresh greens in the United States. It produces lettuce, herbs, and loose-leaf lettuce. The company sells its products to food retailers and food service distributors. Local Bounti Corporation was founded in 2018 and is headquartered in Hamilton, Montana.