Analyzing Premium Brands (OTCMKTS:PRBZF) & Calbee (OTCMKTS:CBCFF)

Premium Brands (OTCMKTS:PRBZF) and Calbee (OTCMKTS:CBCFF) are both consumer defensive companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.

Dividends

Premium Brands pays an annual dividend of $1.25 per share and has a dividend yield of 1.9%. Calbee pays an annual dividend of $17.53 per share and has a dividend yield of 85.4%. 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. Calbee pays out 17.5% of its earnings in the form of a dividend. Calbee is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of current recommendations for Premium Brands and Calbee, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Premium Brands	0	2	2	0	2.50
Calbee	1	0	0	0	1.00

Premium Brands presently has a consensus price target of $103.67, suggesting a potential upside of 55.56%. Given Premium Brands’ stronger consensus rating and higher probable upside, analysts plainly believe Premium Brands is more favorable than Calbee.

Institutional & Insider Ownership

33.5% of Premium Brands shares are held by institutional investors. Comparatively, 11.4% of Calbee shares are held by institutional investors. 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.

Profitability

This table compares Premium Brands and Calbee’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Premium Brands	N/A	N/A	N/A
Calbee	N/A	N/A	N/A

Earnings and Valuation

This table compares Premium Brands and Calbee’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Premium Brands	N/A	N/A	N/A	$0.51	131.46
Calbee	N/A	N/A	N/A	$100.17	0.20

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

Summary

Premium Brands beats Calbee on 5 of the 8 factors compared between the two stocks.

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.

About Calbee

Calbee, Inc. engages in the production and sale of snacks and other food products in Japan, North America, Greater China, the United Kingdom, Indonesia, and internationally. It offers potato-based, flour-based, corn-and bean-based, and other food snacks, as well as wheat, cereals, and granola. The company markets its products under the Potato Chips, JagaRico, Harvest Snaps, Honey Butter Chip, Kappa Ebisen, Seabrook, Sapporo Potato, Sayaendo, Jagabee, and the Frugra brands. It sells its products through e-commerce and retail stores. Calbee, Inc. was incorporated in 1949 and is headquartered in Tokyo, Japan.