Contrasting Drinks Americas (OTCMKTS:DKAM) & Natural Grocers by Vitamin Cottage (NYSE:NGVC)

Natural Grocers by Vitamin Cottage (NYSE:NGVC) and Drinks Americas (OTCMKTS:DKAM) are both retail/wholesale companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, profitability, dividends, risk, valuation, earnings and institutional ownership.

Institutional & Insider Ownership

32.0% of Natural Grocers by Vitamin Cottage shares are held by institutional investors. 58.8% of Natural Grocers by Vitamin Cottage shares are held by company 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.

Valuation and Earnings

This table compares Natural Grocers by Vitamin Cottage and Drinks Americas”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Natural Grocers by Vitamin Cottage	$1.24 billion	0.58	$33.94 million	$1.88	16.59
Drinks Americas	N/A	N/A	N/A	N/A	N/A

Natural Grocers by Vitamin Cottage has higher revenue and earnings than Drinks Americas.

Risk and Volatility

Natural Grocers by Vitamin Cottage has a beta of 1.57, meaning that its stock price is 57% more volatile than the S&P 500. Comparatively, Drinks Americas has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Natural Grocers by Vitamin Cottage and Drinks Americas, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Natural Grocers by Vitamin Cottage	0	1	1	0	2.50
Drinks Americas	0	0	0	0	0.00

Natural Grocers by Vitamin Cottage presently has a consensus target price of $54.00, suggesting a potential upside of 73.10%. Given Natural Grocers by Vitamin Cottage’s stronger consensus rating and higher probable upside, analysts clearly believe Natural Grocers by Vitamin Cottage is more favorable than Drinks Americas.

Profitability

This table compares Natural Grocers by Vitamin Cottage and Drinks Americas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Natural Grocers by Vitamin Cottage	3.31%	23.47%	6.63%
Drinks Americas	N/A	N/A	N/A

Summary

Natural Grocers by Vitamin Cottage beats Drinks Americas on 10 of the 10 factors compared between the two stocks.

About Natural Grocers by Vitamin Cottage

Natural Grocers by Vitamin Cottage, Inc., together with its subsidiaries, retails natural and organic groceries, and dietary supplements in the United States. The company’s stores offer natural and organic grocery products, such as organic produce; private label repackaged bulk products, including dried fruits, nuts, grains, granolas, teas, herbs, and spices, as well as peanut and almond butters; private label products comprising grocery staples, household products, bulk foods, and vitamins and dietary supplements, as well as organic eggs, organic flavored coffee, and organic mustard; dry, frozen, and canned groceries; meat and seafood products; dairy products, dairy substitutes, and eggs; prepared foods; bread and baked products; beverages; and beer, wine, and hard cider products. Its stores also provide name-brand supplements, as well as private label dietary supplements; body care products consisting of cosmetics, skin care, hair care, fragrance, and personal care products containing natural and organic ingredients; pet care and food products; books and handouts; household and general merchandise, including cleaning supplies, paper products, and dish and laundry soaps, as well as other common household products, such as diapers; and books and handouts. The company operates its retail stores under the Natural Grocers by Vitamin Cottage trademark, as well as Vitamin Cottage Natural Grocers and Health Hotline trademarks. The company also offers science-based nutrition education programs to help customers make informed health and nutrition choices. Natural Grocers by Vitamin Cottage, Inc. was founded in 1955 and is headquartered in Lakewood, Colorado.

About Drinks Americas

Drinks Americas Holdings, Ltd. produces, imports, distributes, and markets premium wine and spirits, and alcoholic beverages to beverage wholesalers in the United States and internationally. The company offers premium authentic Mexican beer products under the brand names of Day of the Dead Beer, Mexicali, Rio Bravo, Red Pig, and Chili Beer. The company also markets and distributes non-alcoholic beverages. It offers its products through various retailers and restaurant chains. Drinks Americas Holdings, Ltd. was founded in 1986 and is based in Los Angeles, California.