Critical Contrast: Farmer Bros (NASDAQ:FARM) & UTZ Brands (NASDAQ:UTZ)

UTZ Brands (NYSE:UTZ) and Farmer Bros (NASDAQ:FARM) are both small-cap consumer staples companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, dividends, analyst recommendations, institutional ownership, valuation and profitability.

Profitability

This table compares UTZ Brands and Farmer Bros’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
UTZ Brands N/A 0.71% 0.69%
Farmer Bros -7.40% -12.77% -4.98%

Institutional & Insider Ownership

58.6% of UTZ Brands shares are owned by institutional investors. Comparatively, 77.6% of Farmer Bros shares are owned by institutional investors. 1.4% of Farmer Bros shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for UTZ Brands and Farmer Bros, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
UTZ Brands 0 0 1 0 3.00
Farmer Bros 0 1 0 0 2.00

Farmer Bros has a consensus target price of $8.00, indicating a potential upside of 52.09%. Given Farmer Bros’ higher possible upside, analysts clearly believe Farmer Bros is more favorable than UTZ Brands.

Volatility & Risk

UTZ Brands has a beta of 0.43, meaning that its stock price is 57% less volatile than the S&P 500. Comparatively, Farmer Bros has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500.

Valuation & Earnings

This table compares UTZ Brands and Farmer Bros’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
UTZ Brands N/A N/A $7.97 million N/A N/A
Farmer Bros $501.32 million 0.18 -$37.09 million ($1.26) -4.17

UTZ Brands has higher earnings, but lower revenue than Farmer Bros.

Summary

UTZ Brands beats Farmer Bros on 6 of the 11 factors compared between the two stocks.

UTZ Brands Company Profile

UTZ Brands Inc does not have significant operations. It intends to effect a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses. The company focuses on searching for a business in the consumer goods industry and related sectors.

Farmer Bros Company Profile

Farmer Bros. Co. engages in the manufacture, wholesale, and distribution of coffee, tea, and culinary products in the United States. The company offers roast and ground coffee; frozen liquid coffee; flavored and unflavored iced and hot teas; culinary products, including gelatins and puddings, soup bases, dressings, gravy and sauce mixes, pancake and biscuit mixes, jellies and preserves, and coffee-related products, such as coffee filters, sugar, and creamers; spices; and other beverages comprising cappuccino, cocoa, granitas, and ready-to-drink cold brew and iced coffee. It sells its products under the Farmer Brothers, Artisan Collection by Farmer Brothers, Superior, Metropolitan, China Mist, Boyds, Direct Trade, Fair Trade Certified, Rainforest Alliance Certified, Un Momento, Collaborative Coffee, Cain's, and McGarvey brand names, as well as under various private labels. The company serves small independent restaurants, foodservice operators, restaurants, department and convenience store chains, hotels, casinos, healthcare facilities, gourmet coffee houses, and grocery chains. It distributes its products through direct-store-delivery network, and common carriers or third-party distributors, as well as Website. Farmer Bros. Co. was founded in 1912 and is headquartered in Northlake, Texas.

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