WK Kellogg (NYSE:KLG) vs. Scope Industries (OTCMKTS:SCPJ) Financial Analysis

WK Kellogg (NYSE:KLG) and Scope Industries (OTCMKTS:SCPJ) are both small-cap consumer staples companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, risk, analyst recommendations, earnings and profitability.

Dividends

WK Kellogg pays an annual dividend of $0.64 per share and has a dividend yield of 3.5%. Scope Industries pays an annual dividend of $13.00 per share and has a dividend yield of 4.3%. WK Kellogg pays out 42.4% of its earnings in the form of a dividend.

Profitability

This table compares WK Kellogg and Scope Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
WK Kellogg	4.45%	42.12%	6.42%
Scope Industries	N/A	N/A	N/A

Insider & Institutional Ownership

95.7% of WK Kellogg shares are held by institutional investors. 0.9% of WK Kellogg shares are held by company insiders. Comparatively, 68.1% of Scope Industries shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares WK Kellogg and Scope Industries”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WK Kellogg	$2.72 billion	0.57	$110.00 million	$1.51	12.03
Scope Industries	N/A	N/A	N/A	N/A	N/A

WK Kellogg has higher revenue and earnings than Scope Industries.

Analyst Ratings

This is a summary of recent ratings for WK Kellogg and Scope Industries, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WK Kellogg	4	6	0	0	1.60
Scope Industries	0	0	0	0	N/A

WK Kellogg presently has a consensus price target of $17.40, indicating a potential downside of 4.24%. Given WK Kellogg’s higher probable upside, analysts plainly believe WK Kellogg is more favorable than Scope Industries.

Summary

WK Kellogg beats Scope Industries on 6 of the 9 factors compared between the two stocks.

About WK Kellogg

WK Kellogg Co operates as a food company in the United States, Canada, and the Caribbean. It manufactures, markets, and distributes ready-to-eat cereal products primarily under the Frosted Flakes, Special K, Froot Loops, Raisin Bran, Frosted Mini-Wheats, and Kashi brands. The company was formerly known as North America Cereal Co. and changed its name to WK Kellogg Co in March 2023. The company was incorporated in 2022 and is headquartered in Battle Creek, Michigan.

About Scope Industries

Scope Industries offers waste material recycling services in the United States. It operates plants for the collection and processing of bakery waste materials into a food supplement for animals. The company sells this food supplement to poultry farms, dairies, feed lots, and pet food manufacturers. Scope Industries also owns and operates a plant in Vernon, California, where certain bakery waste material is processed and converted into edible breadcrumbs for human consumption. The company's customers include prepackaged and restaurant supply food processors. Scope Industries was organized in 1938 and its principal executive offices are located in Santa Monica, California. Scope Industries sold all of the outstanding shares of its wholly owned subsidiary, Scope Beauty Enterprises, Inc., doing business as Marinello Schools of Beauty, to B & H Education, Inc. in March 2004.