Critical Comparison: Barfresh Food Group (BRFH) & Lamb Weston (LW)

Barfresh Food Group (OTCMKTS: BRFH) and Lamb Weston (NYSE:LW) are both consumer staples companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, earnings, valuation and risk.

Insider and Institutional Ownership

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80.7% of Lamb Weston shares are owned by institutional investors. 37.2% of Barfresh Food Group shares are owned by insiders. Comparatively, 0.3% of Lamb Weston shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Barfresh Food Group and Lamb Weston’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Barfresh Food Group -444.21% -133.73% -111.91%
Lamb Weston 11.75% -69.53% 14.24%

Analyst Recommendations

This is a summary of current ratings for Barfresh Food Group and Lamb Weston, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Barfresh Food Group 0 0 1 0 3.00
Lamb Weston 0 2 3 1 2.83

Barfresh Food Group presently has a consensus target price of $1.50, suggesting a potential upside of 123.88%. Lamb Weston has a consensus target price of $59.17, suggesting a potential downside of 5.01%. Given Barfresh Food Group’s stronger consensus rating and higher possible upside, equities analysts clearly believe Barfresh Food Group is more favorable than Lamb Weston.

Volatility and Risk

Barfresh Food Group has a beta of -0.02, suggesting that its share price is 102% less volatile than the S&P 500. Comparatively, Lamb Weston has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500.

Dividends

Lamb Weston pays an annual dividend of $0.76 per share and has a dividend yield of 1.2%. Barfresh Food Group does not pay a dividend. Lamb Weston pays out 32.8% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Barfresh Food Group and Lamb Weston’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Barfresh Food Group $1.99 million 39.96 -$8.91 million ($0.11) -6.09
Lamb Weston $3.17 billion 2.88 $324.80 million $2.32 26.85

Lamb Weston has higher revenue and earnings than Barfresh Food Group. Barfresh Food Group is trading at a lower price-to-earnings ratio than Lamb Weston, indicating that it is currently the more affordable of the two stocks.

Summary

Lamb Weston beats Barfresh Food Group on 12 of the 17 factors compared between the two stocks.

About Barfresh Food Group

Barfresh Food Group, Inc. creates, manufactures, and distributes ready to blend frozen beverages in the United States. It offers portion controlled and ready to blend beverage ingredient packs for smoothies, shakes, and frappes, as well as cocktails and mocktails. The company was founded in 2009 and is headquartered in Beverly Hills, California.

About Lamb Weston

Lamb Weston Holdings, Inc. produces and markets value-added frozen potato products worldwide. It operates through four segments: Global, Foodservice, Retail, and Other. The company offers frozen potatoes, sweet potatoes, and appetizers under the Lamb Weston brand name, as well as various customer labels. It serves retail and foodservice customers; grocery, mass, club, and specialty retailers; and businesses, independent restaurants, regional chain restaurants, and convenience stores, as well as educational institutions. The company was founded in 1950 and is headquartered in Eagle, Idaho.

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