In an in-depth comparison of two prominent consumer staples companies, Sysco Corporation and Marine Harvest ASA, investors are evaluating which stock presents a more favorable opportunity. This analysis focuses on key factors such as valuation, dividends, profitability, and risk, providing a clearer picture of each company’s potential.
Dividend Overview and Payout Ratios
Marine Harvest ASA, now known as Mowi ASA, offers an annual dividend of $0.43 per share, translating to a dividend yield of 1.8%. In contrast, Sysco provides a more substantial annual dividend of $2.16 per share, boasting a yield of 2.9%. The payout ratios indicate that Marine Harvest distributes 50.6% of its earnings as dividends, while Sysco allocates 57.9%. Both companies maintain healthy payout ratios, suggesting they can sustain these payments in the foreseeable future.
Importantly, Sysco stands out with a remarkable history of dividend growth, having increased its dividend for 57 consecutive years. This long-term commitment makes Sysco a particularly compelling choice for dividend investors.
Profitability and Valuation Comparisons
When assessing profitability, Sysco outperforms Marine Harvest in several metrics, including net margins, return on equity, and return on assets. In terms of gross revenue and earnings per share (EPS), Sysco also leads, indicating stronger financial performance. Sysco’s price-to-earnings (P/E) ratio is currently lower than that of Marine Harvest, suggesting it may be a more affordable investment opportunity in the market.
Analyst ratings further reinforce Sysco’s favorable position. According to MarketBeat, Sysco has a consensus target price of $85.92, representing a potential upside of 15.78%. This optimistic outlook from analysts positions Sysco as the more attractive stock compared to Marine Harvest.
Volatility and Risk Assessment
Risk is another crucial factor for investors. Marine Harvest’s stock exhibits a beta of 1.04, indicating that it is 4% more volatile than the S&P 500. Conversely, Sysco has a beta of 0.61, reflecting that its stock is 39% less volatile than the benchmark index. This lower volatility may appeal to risk-averse investors looking for stability in their portfolios.
In summary, Sysco demonstrates superior performance across multiple factors, outperforming Marine Harvest in 11 out of the 18 criteria evaluated. This analysis suggests that Sysco may offer a more robust investment opportunity, particularly for those focused on dividends, profitability, and lower volatility.
Marine Harvest ASA, headquartered in Bergen, Norway, specializes in farming and supplying Atlantic salmon products. Its operations include feed production, salmon farming, and seafood processing, catering to a global market.
Sysco Corporation, established in 1969 and based in Houston, Texas, engages in the marketing and distribution of food and related products primarily to the foodservice industry across the United States, Canada, and several European nations. The company serves a wide range of foodservice venues, including restaurants, schools, and hospitals.
Investors seeking to diversify their portfolios may find this comparison of Sysco and Marine Harvest insightful, as both companies present unique strengths and opportunities within the consumer staples sector.
