Associated British Foods (OTCMKTS:ASBFY) vs. H & M Hennes & Mauritz AB (publ) (OTCMKTS:HNNMY) Critical Analysis

Associated British Foods (OTCMKTS:ASBFY) and H & M Hennes & Mauritz AB (publ) (OTCMKTS:HNNMY) are both large-cap consumer staples companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, institutional ownership, analyst recommendations and profitability.

Analyst Ratings

This is a summary of recent ratings and target prices for Associated British Foods and H & M Hennes & Mauritz AB (publ), as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Associated British Foods	1	0	0	0	1.00
H & M Hennes & Mauritz AB (publ)	1	1	2	1	2.60

Institutional & Insider Ownership

0.0% of H & M Hennes & Mauritz AB (publ) shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Associated British Foods and H & M Hennes & Mauritz AB (publ)”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Associated British Foods	$26.11 billion	0.69	$1.85 billion	N/A	N/A
H & M Hennes & Mauritz AB (publ)	$22.22 billion	0.83	$824.44 million	$0.12	21.69

Associated British Foods has higher revenue and earnings than H & M Hennes & Mauritz AB (publ).

Dividends

Associated British Foods pays an annual dividend of $1.71 per share and has a dividend yield of 7.0%. H & M Hennes & Mauritz AB (publ) pays an annual dividend of $0.07 per share and has a dividend yield of 2.7%. H & M Hennes & Mauritz AB (publ) pays out 58.3% of its earnings in the form of a dividend.

Volatility & Risk

Associated British Foods has a beta of 1.34, suggesting that its stock price is 34% more volatile than the S&P 500. Comparatively, H & M Hennes & Mauritz AB (publ) has a beta of 1.43, suggesting that its stock price is 43% more volatile than the S&P 500.

Profitability

This table compares Associated British Foods and H & M Hennes & Mauritz AB (publ)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Associated British Foods	N/A	N/A	N/A
H & M Hennes & Mauritz AB (publ)	4.30%	23.03%	5.76%

Summary

H & M Hennes & Mauritz AB (publ) beats Associated British Foods on 9 of the 13 factors compared between the two stocks.

About Associated British Foods

Associated British Foods plc operates as a diversified food, ingredients, and retail company worldwide. It operates through five segments: Grocery, Ingredients, Agriculture, Sugar, and Retail. The Grocery segment manufactures and sells grocery products, including hot beverages, sugar and sweeteners, vegetable oils, balsamic vinegars, bread and baked goods, cereals, ethnic foods, and meat products to retail, wholesale, and foodservice businesses. The Ingredients segment manufactures bakers' yeast, bakery ingredients, enzymes, lipids, yeast extracts, and cereal specialties. The Agriculture segment manufactures and sells animal feeds; and provides other products and services for the agriculture sector. The Sugar segment is involved in growing, processing, and selling sugar beet and sugar cane to industrial users. The Retail segment is involved in buying and merchandising clothing and accessories through the Primark and Penneys retail chains, which offer women's, men's, and kids wear, as well as beauty, homeware, and accessories. The company was incorporated in 1934 and is headquartered in London, the United Kingdom. Associated British Foods plc operates as a subsidiary of Wittington Investments Limited.

About H & M Hennes & Mauritz AB (publ)

H & M Hennes & Mauritz AB (publ) provides clothing, accessories, footwear, cosmetics, home textiles, and homeware for women, men, and children worldwide. It offers sportswear, shoes, bags, beauty products, activewear, jeans, and ready-to-wear; and interior products, including bed linens, dinnerware, textiles, furniture, and lighting. The company provides its products under the H&M, H&M HOME, H&M Move, H&M Beauty, COS, Weekday, Monki, & Other Stories, ARKET, Afound, and Singular Society brand names. In addition, it operates Sellpy, a broad digital platform for second-hand fashion and other products; and Creator Studio, a global platform for merchandise design and production, as well as provides solutions to extend the useful life of unwanted garments through reuse and recycling under Looper Textile name. The company offers its products through online and physical stores. H & M Hennes & Mauritz AB (publ) was incorporated in 1943 and is headquartered in Stockholm, Sweden.