Contrasting San Miguel Food and Beverage (OTCMKTS:SMPFF) and Premium Brands (OTCMKTS:PRBZF)

San Miguel Food and Beverage (OTCMKTS:SMPFF) and Premium Brands (OTCMKTS:PRBZF) are both consumer defensive companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, earnings, institutional ownership, dividends, valuation, analyst recommendations and risk.

Insider & Institutional Ownership

33.5% of Premium Brands shares are owned by institutional investors. 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.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for San Miguel Food and Beverage and Premium Brands, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
San Miguel Food and Beverage	0	0	0	0	0.00
Premium Brands	0	2	1	0	2.33

Premium Brands has a consensus target price of $103.67, indicating a potential upside of 82.67%. Given Premium Brands’ stronger consensus rating and higher probable upside, analysts plainly believe Premium Brands is more favorable than San Miguel Food and Beverage.

Profitability

This table compares San Miguel Food and Beverage and Premium Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
San Miguel Food and Beverage	N/A	N/A	N/A
Premium Brands	N/A	N/A	N/A

Earnings & Valuation

This table compares San Miguel Food and Beverage and Premium Brands”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
San Miguel Food and Beverage	N/A	N/A	N/A	$24.25	0.03
Premium Brands	N/A	N/A	N/A	$0.51	111.95

San Miguel Food and Beverage is trading at a lower price-to-earnings ratio than Premium Brands, indicating that it is currently the more affordable of the two stocks.

Dividends

San Miguel Food and Beverage pays an annual dividend of $2.30 per share and has a dividend yield of 286.8%. Premium Brands pays an annual dividend of $1.25 per share and has a dividend yield of 2.2%. San Miguel Food and Beverage pays out 9.5% of its earnings in the form of a dividend. Premium Brands pays out 246.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. San Miguel Food and Beverage is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Premium Brands beats San Miguel Food and Beverage on 5 of the 8 factors compared between the two stocks.

About San Miguel Food and Beverage

San Miguel Food and Beverage, Inc. provides processed meat products. The Food segment offers refrigerated processed and canned meat products under the Purefoods, Purefoods Tender Juicy, Star, Higante, Purefoods Beefies, Vida, Purefoods Nuggets, Veega, Purefoods Ready-to-Eat, Ulam King, and San Miguel Del Mar brands; butter, margarine, cheese, milk, ice cream, jelly snacks and desserts, specialty oils, salad aids, snacks, and condiments under the Magnolia, Dari Crème, Star, and Cheezee brands; flour mixes; coffee and related products; feeds under the B-Meg, B-Meg Premium, Integra, Expert, Dynamix, Essential, Pureblend, Bonanza, Jumbo, and Nutri Chunks brands; poultry and fresh meat under the Magnolia, Magnolia Chicken Stations, and Monterey brands; and flour and bakery ingredients, as well as poultry and livestock farming, grain terminal handling, franchising, and food services. The Beer and NAB segment provides fermented, malt-based, and non-alcoholic beverages. It offers beer under the San Miguel Pale Pilsen, Red Horse, Red Horse Super, San Mig Light, San Miguel Flavored Beer, San Miguel Super Dry, San Miguel Premium All-Malt, Cerveza Negra, San Mig Zero, San Mig Free, Gold Eagle, and San Miguel Cerveza Blanca brands; ready-to-drink tea under the Magnolia Healthtea brand; ready-to-drink juice under the Magnolia Fruit Drink brand; and sparkling malt-based non-alcoholic drink under the Cali brand. This segment also offers its products under the Valor, Blue Ice, Dragon, W1N Bia, Anker, Kuda Putih, Bruck, Knight, Hard Seltzer, and San Mig Cola brands. The Spirits segment provides gin, Chinese wine, brandy, rum, vodka, and other hard liquor under the Ginebra San Miguel, Vino Kulafu, Ginebra San Miguel Premium Gin Black, and Tondeña Manila Rum brands; and disinfectant alcohol under the San Miguel Ethyl Alcohol brand. The company was founded in 1890 and is based in Pasig, the Philippines. San Miguel Food and Beverage, Inc. is a subsidiary of San Miguel Corporation.

About Premium Brands

Premium Brands Holdings Corporation, through its subsidiaries, manufactures and distributes food products primarily in Canada and the United States. It operates in two segments, Specialty Foods and Premium Food Distribution. The company provides processed meat, deli products, meat snacks, beef jerky and halal, sandwiches, pastries, specialty and gourmet products, entrees, panini, wraps, subs, hamburgers, burgers, salads and kettle products, muffins, breads, pastas, pizza, and baking and sushi products. It is also involved in the distribution of food products, including meat and seafood products; operation of retail/convenience store and concessionary; and provision of seafood processing services. The company operates under the brand names Harvest Meats, Hempler's, Piller's, Grimm's Fine Foods, Freybe, Isernio's, Expresco, SJ Fine Foods, McSweeney's, Made Rite, Direct Plus, Oberto, Belmont Meats, Conte Foods, SK Food Group, Hygaard, Quality Fast Foods, HQ Fine Foods, Creekside Custom Foods, Stuyver's, Bread Garden Express, and Duso's, as well as Gourmet Chef, Island City Baking, Skilcor, Leadbetter's, Concord Meats, Mclean Meats, Buddy's Kitchen, Raybern's, Leonetti's, Partner's Crackers, Shaw Crackers, Country Prime Meats, Lou's Kitchen, Yorkshire Valley Farms, Golden Valley Farms, Maid-Rite, King's Command Foods, etc. The company was founded in 1917 and is based in Richmond, Canada.