Farmer Brothers (NASDAQ: FARM) and Greencore (OTCMKTS:GNCGY) are both small-cap retail/wholesale companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, institutional ownership, valuation, risk and dividends.
This table compares Farmer Brothers and Greencore’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Greencore pays an annual dividend of $0.25 per share and has a dividend yield of 2.8%. Farmer Brothers does not pay a dividend. Greencore pays out 32.1% of its earnings in the form of a dividend.
Earnings and Valuation
This table compares Farmer Brothers and Greencore’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Farmer Brothers||$541.50 million||0.84||$24.40 million||$0.70||38.29|
|Greencore||$2.94 billion||0.54||$15.46 million||$0.78||11.48|
Farmer Brothers has higher earnings, but lower revenue than Greencore. Greencore is trading at a lower price-to-earnings ratio than Farmer Brothers, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Farmer Brothers has a beta of 0.48, indicating that its share price is 52% less volatile than the S&P 500. Comparatively, Greencore has a beta of 1.72, indicating that its share price is 72% more volatile than the S&P 500.
Insider and Institutional Ownership
57.3% of Farmer Brothers shares are held by institutional investors. 9.2% of Farmer Brothers shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This is a breakdown of recent recommendations and price targets for Farmer Brothers and Greencore, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Farmer Brothers currently has a consensus price target of $35.33, suggesting a potential upside of 31.84%. Given Farmer Brothers’ higher probable upside, research analysts plainly believe Farmer Brothers is more favorable than Greencore.
Farmer Brothers beats Greencore on 10 of the 15 factors compared between the two stocks.
About Farmer Brothers
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 iced coffee. It sells its products under the Farmer Brothers, Artisan Collection by Farmer Brothers, Superior, Metropolitan, China Mist, 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, restaurant 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.
Greencore Group plc produces and sells various food products primarily in the United Kingdom and the United States. It operates through Convenience Foods UK & Ireland, Convenience Foods US, and Ingredients and Property segments. The company provides sandwiches, wraps, rolls, sub-rolls, flatbreads, baguettes, bagels, prepared salads, and sushi products; and prepared meals, such as chilled ready meals, chilled sauces and soups, and quiches. It also offers grocery products comprising cooking sauces, table sauces, pickles, Yorkshire puddings, cakes, and desserts, as well as various convenience food products; and frozen breakfast sandwiches, kid, frozen sandwiches, and salad kits. It provides its products primarily through retailers, coffee shops, grocery stores, convenience stores, supermarket and high street chains, and petrol forecourts. Greencore Group plc was founded in 1991 and is headquartered in Dublin, Ireland.
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