CAG vs Tyson Foods Which Offers More Value?

CAG and Tyson Foods are two well-known companies in the food industry, and their stocks have been of interest to investors for many years. Conagra Brands (CAG) is a packaged foods company that produces products such as Hunt's, Orville Redenbacher's, and Slim Jim. Tyson Foods, on the other hand, is a leading meat and poultry producer known for brands like Tyson, Hillshire Farm, and Jimmy Dean. Both companies have faced their fair share of challenges and successes, making their stock performance a topic of much discussion and analysis among investors.

CAG or Tyson Foods?

When comparing CAG and Tyson Foods, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between CAG and Tyson Foods.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. CAG has a dividend yield of 3.55%, while Tyson Foods has a dividend yield of 3.16%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. CAG reports a 5-year dividend growth of 0.00% year and a payout ratio of 54.27%. On the other hand, Tyson Foods reports a 5-year dividend growth of 8.64% year and a payout ratio of 85.50%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with CAG P/E ratio at 15.31 and Tyson Foods's P/E ratio at 27.03. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. CAG P/B ratio is 2.59 while Tyson Foods's P/B ratio is 1.18.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, CAG has seen a 5-year revenue growth of 0.37%, while Tyson Foods's is 0.39%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CAG's ROE at 16.95% and Tyson Foods's ROE at 4.40%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are kr109.50 for CAG and $61.55 for Tyson Foods. Over the past year, CAG's prices ranged from kr95.00 to kr115.00, with a yearly change of 21.05%. Tyson Foods's prices fluctuated between $49.97 and $66.88, with a yearly change of 33.84%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.