Reviewing Premium Brands (OTCMKTS:PRBZF) and Nissin Foods Holdings Co.,Ltd. (OTCMKTS:NFPDF)

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

Analyst Recommendations

This is a breakdown of recent ratings for Nissin Foods Holdings Co.,Ltd. and Premium Brands, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nissin Foods Holdings Co.,Ltd.	0	0	1	0	3.00
Premium Brands	0	3	2	0	2.40

Premium Brands has a consensus target price of $116.80, indicating a potential upside of 69.89%. Given Premium Brands’ higher probable upside, analysts plainly believe Premium Brands is more favorable than Nissin Foods Holdings Co.,Ltd..

Institutional and Insider Ownership

11.9% of Nissin Foods Holdings Co.,Ltd. shares are held by institutional investors. Comparatively, 33.5% of Premium Brands shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Nissin Foods Holdings Co.,Ltd. and Premium Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nissin Foods Holdings Co.,Ltd.	N/A	N/A	N/A
Premium Brands	N/A	N/A	N/A

Valuation & Earnings

This table compares Nissin Foods Holdings Co.,Ltd. and Premium Brands’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nissin Foods Holdings Co.,Ltd.	N/A	N/A	N/A	$170.94	0.16
Premium Brands	N/A	N/A	N/A	$0.51	135.62

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

Dividends

Nissin Foods Holdings Co.,Ltd. pays an annual dividend of $59.72 per share and has a dividend yield of 219.2%. Premium Brands pays an annual dividend of $1.25 per share and has a dividend yield of 1.8%. Nissin Foods Holdings Co.,Ltd. pays out 34.9% of its earnings in the form of a dividend. 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. Nissin Foods Holdings Co.,Ltd. is clearly the better dividend stock, given its higher yield and lower payout ratio.

About Nissin Foods Holdings Co.,Ltd.

Nissin Foods Holdings Co.,Ltd., together with its subsidiaries, engages in the manufacture and sale of instant foods in Japan and internationally. The company operates through the Nissin Food Products, Myojo Foods, Chilled and Frozen Foods and Beverages, Confectionery, The Americas, China, Asia, EMEA, and Domestic Others segments. Its products include packaged instant noodles, cup noodles, chilled and frozen foods, soups, chilled noodles, cereal foods, dairy products, confectionery, rice crackers and snacks, beverages and yogurt, potato chips, and other products. The company offers its products under Chicken Ramen, Cup Noodle, Cup Noodles Chicken, Demae Iccho, Hé wèi dào, 365 Noodles, Cup brand names. The company was incorporated in 1948 and is headquartered in Tokyo, Japan.

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.