General Mills (GIS) and Z-Trim (FBER) Critical Analysis

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General Mills (NYSE:GIS) and Z-Trim (OTCMKTS:FBER) are both consumer staples companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, risk, valuation, dividends, profitability, earnings and institutional ownership.

Risk & Volatility

General Mills has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500. Comparatively, Z-Trim has a beta of 4.05, meaning that its stock price is 305% more volatile than the S&P 500.

Dividends

General Mills pays an annual dividend of $1.96 per share and has a dividend yield of 4.3%. Z-Trim does not pay a dividend. General Mills pays out 63.0% of its earnings in the form of a dividend. General Mills has raised its dividend for 14 consecutive years.

Analyst Ratings

This is a breakdown of current recommendations and price targets for General Mills and Z-Trim, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
General Mills 1 15 4 0 2.15
Z-Trim 0 0 0 0 N/A

General Mills currently has a consensus target price of $49.81, indicating a potential upside of 9.53%. Given General Mills’ higher possible upside, equities analysts clearly believe General Mills is more favorable than Z-Trim.

Profitability

This table compares General Mills and Z-Trim’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
General Mills 13.19% 31.84% 6.93%
Z-Trim N/A N/A N/A

Insider & Institutional Ownership

70.5% of General Mills shares are held by institutional investors. Comparatively, 0.0% of Z-Trim shares are held by institutional investors. 0.6% of General Mills shares are held by company insiders. Comparatively, 82.4% of Z-Trim shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares General Mills and Z-Trim’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
General Mills $15.74 billion 1.72 $2.13 billion $3.11 14.62
Z-Trim $1.17 million 0.33 -$3.15 million N/A N/A

General Mills has higher revenue and earnings than Z-Trim.

Summary

General Mills beats Z-Trim on 11 of the 14 factors compared between the two stocks.

About General Mills

General Mills, Inc. manufactures and markets branded consumer foods worldwide. The company operates in five segments: North America Retail; Convenience Stores & Foodservice; Europe & Australia; Asia & Latin America; and Pet. It offers ready-to-eat cereals, refrigerated yogurt, soup, meal kits, refrigerated and frozen dough products, dessert and baking mixes, frozen pizza and pizza snacks, grain, fruit, and savory snacks, as well as organic products, including refrigerated yogurt, nutrition bars, meal kits, salty snacks, ready-to-eat cereal, and grain snacks. It also supplies branded and unbranded food products to the North American foodservice and commercial baking industries; and manufactures and markets pet food products, including dog and cat food. The company markets its products under the Annie's, Betty Crocker, Bisquick, Blue Buffalo, BLUE Basics, BLUE Freedom, BLUE Wilderness, Bugles, Cascadian Farm, Cheerios, Chex, Cinnamon Toast Crunch, Cocoa Puffs, Cookie Crisp, EPIC, Fiber One, Food Should Taste Good, Fruit by the Foot, Fruit Gushers, Fruit Roll-Ups, Gardetto's, Go-Gurt, Gold Medal, Golden Grahams, Häagen-Dazs, Helpers, Jeno's, Jus-Rol, Kitano, Kix, La Salteña, Lärabar, Latina, Liberté, Lucky Charms, Muir Glen, Nature Valley, Oatmeal Crisp, Old El Paso, Pillsbury, Progresso, Raisin Nut Bran, Total, Totino's, Trix, Wanchai Ferry, Wheaties, Yoki, and Yoplait trademarks. General Mills sells its products directly, as well as through broker and distribution arrangements to grocery stores, mass merchandisers, membership stores, natural food chains, e-commerce retailers, commercial and noncommercial foodservice distributors and operators, restaurants, convenience stores, and pet specialty stores, as well as drug, dollar, and discount chains. It operates 507 leased and 372 franchise branded ice cream parlors. The company was founded in 1866 and is based in Minneapolis, Minnesota.

About Z-Trim

Agritech Worldwide, Inc. does not have significant business operations. Previously, it developed products and processes that converted agricultural by-products into multi-functional ingredients for use in the food manufacturing and other industries. The company was formerly known as Z Trim Holdings, Inc. and changed its name to Agritech Worldwide, Inc. in April 2016. Agritech Worldwide, Inc. was founded in 1994 and is based in New York, New York.

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