Does Annies Inc (BNNY)’s Growth Match Its Valuation?

So, will the stock head higher? Maybe, but if you want to invest with a comfortable (or even existent) margin of safety and sleep well at night after all of those organic graham crackers, then I would look elsewhere for a food investment.

One company investors can take a look at is Dean Foods Co (NYSE:DF). After spinning off its own health-food segment, among others, this pure play on dairy is a neglected stock with free cash flow for days and an effective, cost-conscious management team. Dean Foods trades at just three times trailing earnings and less than 15 times forward earnings. As costs continue to come down, expect profitability to rise and the market to take notice.

Of course, always do your own research and make the decision that best fits your investment profile.

The article Does Annie’s Growth Match Its Valuation? originally appeared on Fool.com.

Fool contributor Michael Lewis has no position in any stocks mentioned. The Motley Fool owns shares of Dean Foods.

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