Head-To-Head Contrast: Amira Nature Foods (ANFI) versus General Mills (GIS)

General Mills (NYSE: GIS) and Amira Nature Foods (NYSE:ANFI) are both consumer staples companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, earnings, analyst recommendations, valuation and dividends.

Dividends

General Mills pays an annual dividend of $1.96 per share and has a dividend yield of 3.6%. Amira Nature Foods does not pay a dividend. General Mills pays out 70.8% of its earnings in the form of a dividend. Amira Nature Foods has increased its dividend for 13 consecutive years.

Profitability

This table compares General Mills and Amira Nature Foods’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
General Mills 10.61% 38.97% 8.47%
Amira Nature Foods N/A N/A N/A

Insider and Institutional Ownership

69.5% of General Mills shares are held by institutional investors. Comparatively, 12.5% of Amira Nature Foods shares are held by institutional investors. 1.4% of General Mills shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares General Mills and Amira Nature Foods’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
General Mills $15.62 billion 2.03 $3.41 billion $2.77 19.87
Amira Nature Foods $551.88 million 0.37 $70.71 million N/A N/A

General Mills has higher revenue and earnings than Amira Nature Foods.

Analyst Recommendations

This is a summary of current ratings for General Mills and Amira Nature Foods, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
General Mills 3 12 1 0 1.88
Amira Nature Foods 0 1 1 0 2.50

General Mills presently has a consensus price target of $58.62, indicating a potential upside of 6.50%. Amira Nature Foods has a consensus price target of $13.00, indicating a potential upside of 132.56%. Given Amira Nature Foods’ stronger consensus rating and higher possible upside, analysts clearly believe Amira Nature Foods is more favorable than General Mills.

Risk & Volatility

General Mills has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500. Comparatively, Amira Nature Foods has a beta of -0.16, meaning that its share price is 116% less volatile than the S&P 500.

Summary

General Mills beats Amira Nature Foods on 10 of the 14 factors compared between the two stocks.

General Mills Company Profile

General Mills, Inc. is a manufacturer and marketer of branded consumer foods sold through retail stores. The Company is a supplier of branded and unbranded food products to the North American foodservice and commercial baking industries. The Company has three segments: U.S. Retail, International, and Convenience Stores and Foodservice. Its products are marketed under various brands, which include Annie’s and Betty Crocker. The Company’s U.S. Retail segment reflects business with a range of grocery stores, mass merchandisers, membership stores, natural food chains, drug, dollar and discount chains, and e-commerce grocery providers operating throughout the United States. The International segment consists of retail and foodservice businesses outside of the United States. The Convenience Stores and Foodservice segment’s product categories include ready-to-eat cereals, snacks, refrigerated yogurt, frozen meals, unbaked and fully baked frozen dough products, and baking mixes.

Amira Nature Foods Company Profile

Amira Nature Foods Ltd is primarily engaged in the business of processing and selling packaged Indian specialty rice, primarily basmati rice and other food products. The Company sells Basmati rice and other specialty rice, under its Amira brand, as well as under other third-party brands. It also sells non-basmati rice. It has developed a line of Amira branded products to complement its packaged rice offerings, including edible oil, snacks, ready-to-heat meals and a line of organic product offerings. It is engaged in the institutional sale of bulk commodities to international and regional trading firms, which includes wheat, barley, legume, maize, sugar, soybean meal, onion, potato, millet and others. Its Amira branded product line includes Amira Pure Basmati Rice, Amira Indian Basmati Rice, Smoked Basmati Rice, Amira Khichdi Rice, Amira Navratan Mix and others. The Company’s third-party branded rice products include Euricom Brown Basmati Rice, Bonne Chance Long Grain Rice and others.

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