Analyzing Sysco (NYSE:SYY) and Utz Brands (NYSE:UTZ)

Sysco (NYSE:SYY) and Utz Brands (NYSE:UTZ) are both consumer staples companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, valuation, earnings and dividends.

Volatility & Risk

Sysco has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500. Comparatively, Utz Brands has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for Sysco and Utz Brands, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sysco	0	4	10	0	2.71
Utz Brands	0	2	6	0	2.75

Sysco currently has a consensus target price of $83.00, suggesting a potential upside of 6.86%. Utz Brands has a consensus target price of $17.69, suggesting a potential upside of 33.69%. Given Utz Brands’ stronger consensus rating and higher probable upside, analysts plainly believe Utz Brands is more favorable than Sysco.

Dividends

Sysco pays an annual dividend of $2.04 per share and has a dividend yield of 2.6%. Utz Brands pays an annual dividend of $0.24 per share and has a dividend yield of 1.8%. Sysco pays out 52.8% of its earnings in the form of a dividend. Utz Brands pays out 75.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Sysco has increased its dividend for 57 consecutive years and Utz Brands has increased its dividend for 3 consecutive years. Sysco is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Sysco and Utz Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sysco	2.36%	107.96%	8.43%
Utz Brands	1.94%	8.05%	4.14%

Valuation & Earnings

This table compares Sysco and Utz Brands”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sysco	$78.84 billion	0.48	$1.96 billion	$3.86	20.12
Utz Brands	$1.41 billion	1.33	$15.97 million	$0.32	41.34

Sysco has higher revenue and earnings than Utz Brands. Sysco is trading at a lower price-to-earnings ratio than Utz Brands, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

83.4% of Sysco shares are held by institutional investors. Comparatively, 96.0% of Utz Brands shares are held by institutional investors. 0.5% of Sysco shares are held by company insiders. Comparatively, 16.3% of Utz Brands shares are held 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.

Summary

Sysco beats Utz Brands on 10 of the 17 factors compared between the two stocks.

About Sysco

Sysco Corporation, through its subsidiaries, engages in the marketing and distribution of various food and related products to the foodservice or food-away-from-home industry in the United States, Canada, the United Kingdom, France, and internationally. It operates through U.S. Foodservice Operations, International Foodservice Operations, SYGMA, and Other segments. The company distributes frozen food, such as meat, seafood, fully prepared entrées, fruits, vegetables, and desserts; canned and dry food products; fresh meat and seafood products; dairy products; beverages; imported specialties; and fresh produce products. It also supplies various non-food items, including paper products comprising disposable napkins, plates, and cups; tableware consisting of glassware and silverware; cookware, such as pots, pans, and utensils; restaurant and kitchen equipment and supplies; and cleaning supplies. The company serves restaurants, hospitals and nursing facilities, schools and colleges, hotels and motels, industrial caterers, and other foodservice venues. Sysco Corporation was incorporated in 1969 and is headquartered in Houston, Texas.

About Utz Brands

Utz Brands, Inc. engages in manufacture, marketing, and distribution of snack foods. It offers a range of salty snacks, including salty snacks, including potato chips, tortilla chips, pretzels, cheese snacks, pork skins, veggie snacks, pub/party mixes, tortilla chips, salsa and dips, ready-to-eat popcorn, and other snacks under the Utz, Zapp’s, ON THE BORDER, Golden Flake, Boulder Canyon, Hawaiian, TORTIYAHS!, etc. The company sells its products to wholesale and other distributors, grocery stores, convenience and drug stores, discount stores, mass merchandisers, membership club stores, hard discounters, and specialty and e-commerce retailers. Utz Brands, Inc. was founded in 1921 and is headquartered in Hanover, Pennsylvania.