Tyson Foods vs CAG Which Is Superior?

Tyson Foods and Conagra Brands (CAG) are two major players in the food industry, both known for their wide range of products and strong brand presence. Tyson Foods is a leading producer of chicken, beef, and pork products, while Conagra Brands is known for its popular consumer food brands such as Healthy Choice, Hunt's, and Orville Redenbacher's. As investment options, both companies offer potential for profit and growth, but each comes with its own set of risks and rewards for investors to consider.

Tyson Foods or CAG?

When comparing Tyson Foods and CAG, 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 Tyson Foods and CAG.

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. Tyson Foods has a dividend yield of 3.14%, while CAG has a dividend yield of 3.5%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Tyson Foods reports a 5-year dividend growth of 8.64% year and a payout ratio of 85.50%. On the other hand, CAG reports a 5-year dividend growth of 0.00% year and a payout ratio of 54.27%.

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 Tyson Foods P/E ratio at 27.14 and CAG's P/E ratio at 15.52. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Tyson Foods P/B ratio is 1.18 while CAG's P/B ratio is 2.63.

Growth Investors:

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

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $62.59 for Tyson Foods and kr110.00 for CAG. Over the past year, Tyson Foods's prices ranged from $49.97 to $66.88, with a yearly change of 33.84%. CAG's prices fluctuated between kr95.00 and kr115.00, with a yearly change of 21.05%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.