SYSCO (NYSE:SYY) and Alkaline Water (OTCMKTS:WTER) are both consumer staples companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.
This table compares SYSCO and Alkaline Water’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent recommendations and price targets for SYSCO and Alkaline Water, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
SYSCO currently has a consensus price target of $73.33, indicating a potential upside of 9.98%. Given SYSCO’s higher probable upside, analysts plainly believe SYSCO is more favorable than Alkaline Water.
Insider and Institutional Ownership
80.1% of SYSCO shares are owned by institutional investors. 7.9% of SYSCO shares are owned by company insiders. Comparatively, 5.9% of Alkaline Water shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares SYSCO and Alkaline Water’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|SYSCO||$58.73 billion||0.59||$1.43 billion||$3.14||21.18|
|Alkaline Water||$19.81 million||6.09||-$6.68 million||N/A||N/A|
SYSCO has higher revenue and earnings than Alkaline Water.
Risk & Volatility
SYSCO has a beta of 0.56, meaning that its stock price is 44% less volatile than the S&P 500. Comparatively, Alkaline Water has a beta of 0.11, meaning that its stock price is 89% less volatile than the S&P 500.
SYSCO pays an annual dividend of $1.44 per share and has a dividend yield of 2.2%. Alkaline Water does not pay a dividend. SYSCO pays out 45.9% of its earnings in the form of a dividend. SYSCO has increased its dividend for 47 consecutive years.
SYSCO beats Alkaline Water on 12 of the 14 factors compared between the two stocks.
SYSCO Company Profile
Sysco Corporation, through its subsidiaries, markets and distributes a range of food and related products primarily to the foodservice or food-away-from-home industry. It operates through three segments: U.S. Foodservice Operations, International Foodservice Operations, and SYGMA. The company distributes a line of frozen foods, such as meats, seafood, fully prepared entrees, fruits, vegetables, and desserts; a line of canned and dry foods; fresh meats and seafood; dairy products; beverage products; imported specialties; and fresh produce. It also supplies various non-food items, including paper products comprising disposable napkins, plates, and cups; tableware consisting of China and silverware; cookware, which include pots, pans, and utensils; restaurant and kitchen equipment and supplies; and cleaning supplies. The company serves restaurants, hospitals and nursing homes, schools and colleges, hotels and motels, industrial caterers, and other foodservice venues. As of June 30, 2018, it operated 332 distribution facilities in North America and Europe. Sysco Corporation was founded in 1969 and is headquartered in Houston, Texas.
Alkaline Water Company Profile
The Alkaline Water Company Inc. produces, distributes, and markets bottled alkaline water in the United States. The company offers bottled alkaline water in various volumes under the Alkaline88 trade name. It sells its products through brokers and distributors to retailers, such as convenience stores, natural food products stores, large ethnic markets, and national retailers. The company was incorporated in 2011 and is headquartered in Scottsdale, Arizona.
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