Conagra Brands (CAG) vs Ingredion Incorporated (INGR)

Conagra Brands and Ingredion Incorporated are both Packaged Foods companies. Conagra Brands is the larger, with a market value of $7.0B against $6.1B — 1.2× the size. Conagra Brands has negative trailing earnings, so its P/E is not meaningful; Ingredion Incorporated trades at 10.4×. Ingredion Incorporated grew revenue faster over the last twelve months: −1.38% against −2.85%. Ingredion Incorporated has the higher net margin (8.21% vs −17.0%) and the higher return on invested capital (10.0% vs −7.61%). Both pay a dividend; Conagra Brands yields more (4.94% vs 2.90%). Across the 21 metrics below, Ingredion Incorporated leads on 13 and Conagra Brands on 8.

Valuation

Metric CAG INGR Packaged Foods median
P/E n/m 10.40 12.69
P/S 0.61 0.85 0.61
P/B 1.08 1.35 1.47
Price to free cash flow 6.84 12.70 8.50
EV/EBITDA n/m 6.41 8.20
EV/Sales 1.23 0.96 0.85
Earnings yield (27.93%) 9.62% 0.00%
Free cash flow yield 14.62% 7.87% 6.05%

Profitability

Metric CAG INGR Packaged Foods median
Gross margin 23.92% 23.73% 27.54%
Operating margin (14.43%) 11.92% 0.00%
Net margin (16.99%) 8.21% 0.00%
Free cash flow margin 9.02% 6.68% 2.56%
Return on equity (25.06%) 13.54% 0.00%
Return on assets (10.03%) 7.47% 0.00%
Return on invested capital (7.61%) 10.04% 0.00%

Growth

Metric CAG INGR Packaged Foods median
Revenue growth (TTM) (2.85%) (1.38%) 5.69%
EPS growth (last fiscal year) (266.67%) 15.14% —
Revenue growth, 5-year CAGR 0.17% 3.81% 3.81%
Net income growth, 5-year CAGR 0.00% 15.94% 0.00%

Health

Metric CAG INGR Packaged Foods median
Debt to equity 1.14 0.39 0.26
Current ratio 0.90 2.80 1.64
Net debt to EBITDA (5.69) 0.61 0.87

Dividend

Metric CAG INGR Packaged Foods median
Dividend yield 4.94% 2.90% 3.21%
Payout ratio 0.93 0.33 0.00

Size

Metric CAG INGR Packaged Foods median
Market cap 7.03b 6.09b 245.45m

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