For the love of chicken, Sanderson Farms Inc (NASDAQ:SAFM) is a good stock to consider. Pilgrim’s Pride Corporation (NASDAQ:PPC) comes some distance second. Both companies sell frozen chicken. They are both strong buys according to Zacks Research. This analysis considers which of the two would be the better buy.
Sanderson Farms is trading at $215, which is the highest point over the last 52 weeks. The EPS is $38.53, and the PE is 5.41. Sanderson Farms has a dividend yield of 0.82%. This is supported by the ROE of 44.06%.
Pilgrim’s Pride has a price of $30. The EPS is $0.87 placing the PE at 34.60. The company’s ROE is a low of 7.67%. It is worth noting that the 52-week high for the stock is $34; hence the stock is trading in the highs.
Sanderson Farms’ returns are superior to Pilgrim’s Pride
Source – TradingView
Technical analysis shows that Sanderson Farms posted 97% gains since 2019. For the same period, Pilgrim’s Pride returned a total of 52%. This is a huge difference in the returns of the two stocks. Both stocks are trading at the 53-week highs. While Pilgrim’s Pride may have established resistance at $34, Sanderson Farms is still finding the highest level.
Summary
Sanderson Farms is superior to Pilgrim’s Pride in returns. Both the ROE and market gains are higher for Sanderson Farms. The major difference is in the PE ratios, making Sanderson Farms the better buy at the current highs.
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