The Hain Celestial Group (NASDAQ: HAIN) and Lancaster Colony Corporation (NASDAQ:LANC) are both mid-cap consumer staples companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitabiliy, dividends and analyst recommendations.
Lancaster Colony Corporation pays an annual dividend of $2.20 per share and has a dividend yield of 1.7%. The Hain Celestial Group does not pay a dividend. Lancaster Colony Corporation pays out 51.3% of its earnings in the form of a dividend. Lancaster Colony Corporation has raised its dividend for 54 consecutive years.
Institutional & Insider Ownership
86.7% of The Hain Celestial Group shares are held by institutional investors. Comparatively, 50.6% of Lancaster Colony Corporation shares are held by institutional investors. 3.1% of The Hain Celestial Group shares are held by company insiders. Comparatively, 32.1% of Lancaster Colony Corporation shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This table compares The Hain Celestial Group and Lancaster Colony Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|The Hain Celestial Group||-0.75%||-1.09%||-0.61%|
|Lancaster Colony Corporation||9.82%||23.80%||19.01%|
This is a breakdown of recent recommendations for The Hain Celestial Group and Lancaster Colony Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|The Hain Celestial Group||1||11||7||0||2.32|
|Lancaster Colony Corporation||0||2||4||0||2.67|
The Hain Celestial Group currently has a consensus target price of $41.86, indicating a potential downside of 4.41%. Lancaster Colony Corporation has a consensus target price of $148.00, indicating a potential upside of 17.70%. Given Lancaster Colony Corporation’s stronger consensus rating and higher probable upside, analysts plainly believe Lancaster Colony Corporation is more favorable than The Hain Celestial Group.
Risk and Volatility
The Hain Celestial Group has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500. Comparatively, Lancaster Colony Corporation has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500.
Valuation and Earnings
This table compares The Hain Celestial Group and Lancaster Colony Corporation’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|The Hain Celestial Group||$2.87 billion||1.58||$265.06 million||N/A||N/A|
|Lancaster Colony Corporation||$1.20 billion||2.88||$221.45 million||$4.29||29.31|
The Hain Celestial Group has higher revenue and earnings than Lancaster Colony Corporation.
Lancaster Colony Corporation beats The Hain Celestial Group on 9 of the 15 factors compared between the two stocks.
The Hain Celestial Group Company Profile
The Hain Celestial Group, Inc. is an organic and natural products company. The Company and its subsidiaries manufacture, market, distribute and sell organic and natural products under brand names which are sold as better-for-you products. The Company’s segments include United States, United Kingdom, Hain Pure Protein and Rest of World. Its Rest of World segment includes Canada and Europe. The Company’s brand names include Almond Dream, Arrowhead Mills, Bearitos, BluePrint, Celestial Seasonings, Cully & Sully, Danival, DeBoles, Earth’s Best, Ella’s Kitchen, Empire, Europe’s Best, Farmhouse Fare, Frank Cooper’s, FreeBird, Gale’s, Garden of Eatin’, GG UniqueFiber, Hain Pure Foods, Hartley’s, Health Valley, Imagine, Johnson’s Juice Co., Joya, Kosher Valley, Lima, The Greek Gods, Tilda, Walnut Acres, WestSoy, Yves Veggie Cuisine and Yorkshire Provender. Its personal care products are marketed under the Alba Botanica, Avalon Organics, Earth’s Best, JASON, Live Clean and Queen Helene brands.
Lancaster Colony Corporation Company Profile
Lancaster Colony Corporation is a manufacturer and marketer of specialty food products for the retail and foodservice channels. The Company’s food products include Salad dressings and sauces, Vegetable dips and fruit dips, Frozen garlic breads, Frozen Parkerhouse style yeast rolls and dinner rolls, Premium dry egg noodles, Frozen specialty noodles, Croutons and salad toppings, Flatbread wraps and pizza crusts, and Caviar. Its brands include Marzetti, Marzetti Simply Dressed, Cardini’s, Girard’s, Katherine’s Kitchen, New York BRAND Bakery, Mamma Bella’s, Sister Schubert’s, Mary B’s, Inn Maid, Amish Kitchen, Reames, Aunt Vi’s, Flatout and Romanoff. It manufactures and sells other products pursuant to brand license agreements, including Olive Garden dressing, Jack Daniel’s mustards and Hungry Girl flatbreads. A portion of its sales are dressing packets, frozen specialty noodles, pasta and flatbreads sold to industrial customers for use as ingredients or components in their products.
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