Head-To-Head Review: Generation Next Franchise Brands (VEND) and Welbilt (WBT)

Generation Next Franchise Brands (OTCMKTS: VEND) and Welbilt (NYSE:WBT) are both business services companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, institutional ownership, risk, valuation, profitability and analyst recommendations.

Analyst Recommendations

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This is a summary of current recommendations and price targets for Generation Next Franchise Brands and Welbilt, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Generation Next Franchise Brands 0 0 1 0 3.00
Welbilt 0 3 5 0 2.63

Welbilt has a consensus price target of $23.40, indicating a potential upside of 22.51%. Given Welbilt’s higher probable upside, analysts plainly believe Welbilt is more favorable than Generation Next Franchise Brands.

Insider and Institutional Ownership

0.1% of Generation Next Franchise Brands shares are held by institutional investors. Comparatively, 89.9% of Welbilt shares are held by institutional investors. 62.6% of Generation Next Franchise Brands shares are held by insiders. Comparatively, 0.4% of Welbilt shares are held by 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.

Profitability

This table compares Generation Next Franchise Brands and Welbilt’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Generation Next Franchise Brands -861.36% N/A -72.26%
Welbilt 9.27% 312.48% 5.88%

Valuation & Earnings

This table compares Generation Next Franchise Brands and Welbilt’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Generation Next Franchise Brands $4.27 million 24.69 -$11.26 million N/A N/A
Welbilt $1.45 billion 1.85 $134.00 million $0.77 24.81

Welbilt has higher revenue and earnings than Generation Next Franchise Brands.

Risk and Volatility

Generation Next Franchise Brands has a beta of -8.15, meaning that its share price is 915% less volatile than the S&P 500. Comparatively, Welbilt has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500.

Summary

Welbilt beats Generation Next Franchise Brands on 9 of the 12 factors compared between the two stocks.

Generation Next Franchise Brands Company Profile

Generation NEXT Franchise Brands, Inc. formerly Fresh Healthy Vending International, Inc., is a franchise development company and operator of Company-owned vending machines, micro markets and frozen yogurt robots. The Company provides a portfolio of fresh, organic and all-natural snacks and drinks. The micro market provides fresh full meal options, such as salads, sandwiches and wraps. The micro market is designed for implementation in corporate environments, hotel lobbies, auto dealerships and other retail environments. The Company is focused on setting up national distribution partners to carry the consumable products required for the frozen yogurt robots. It outsources non-core functions to third-party vendors. Its services include machine manufacturing, transport, location set-up, maintenance, inventory, food management and ordering, payment processing and cash management. As of June 30, 2016, the Company and its franchisees operated over 3,000 vending machines and micro markets.

Welbilt Company Profile

Welbilt, Inc., formerly Manitowoc Foodservice, Inc., is a commercial foodservice equipment company. The Company designs, manufactures and supplies food and beverage equipment for the global commercial foodservice market, offering customers operator and patron insights, kitchen solutions, culinary expertise, and implementation support and service. It operates through three segments: Americas, EMEA and APAC. The Americas segment includes the United States, Canada and Latin America. The EMEA segment consists of markets in Europe, Middle East and Africa, including Russia and the commonwealth of independent states. The APAC segment consists of markets in China, Singapore, Australia, India, Malaysia, Indonesia, Thailand and the Philippines. It supplies foodservice equipment to commercial and institutional foodservice operators. Its brands include Cleveland, Convotherm, Delfield, fitKitchen, Frymaster, Garland, Kolpak, Lincoln, Manitowoc Ice, Merco, Merrychef and Multiplex.

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