Analyzing Kerry Group (OTCMKTS:KRYAY) & Freshpet (NASDAQ:FRPT)

Freshpet (NASDAQ:FRPT) and Kerry Group (OTCMKTS:KRYAY) are both consumer staples companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings and target prices for Freshpet and Kerry Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Freshpet	1	8	9	0	2.44
Kerry Group	0	1	3	0	2.75

Freshpet currently has a consensus price target of $76.00, suggesting a potential upside of 35.88%. Given Freshpet’s higher possible upside, equities analysts plainly believe Freshpet is more favorable than Kerry Group.

Risk and Volatility

Freshpet has a beta of 1.66, meaning that its share price is 66% more volatile than the S&P 500. Comparatively, Kerry Group has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500.

Profitability

This table compares Freshpet and Kerry Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Freshpet	12.63%	6.93%	4.64%
Kerry Group	N/A	N/A	N/A

Insider and Institutional Ownership

0.2% of Kerry Group shares are held by institutional investors. 4.4% of Freshpet shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Freshpet and Kerry Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Freshpet	$1.10 billion	2.49	$139.14 million	$2.57	21.76
Kerry Group	$7.64 billion	1.62	$745.03 million	N/A	N/A

Kerry Group has higher revenue and earnings than Freshpet.

Summary

Freshpet beats Kerry Group on 8 of the 12 factors compared between the two stocks.

About Freshpet

Freshpet, Inc., together with its subsidiaries, manufactures, distributes, and markets natural fresh meals and treats for dogs and cats in the United States, Canada, and Europe. It sells dog food, cat food, and dog treats under the Freshpet brand name; and Dognation and Dog Joy labels through various classes of retail, including grocery, mass, club, pet specialty, and natural, as well as online. The company was incorporated in 2004 and is headquartered in Secaucus, New Jersey.

About Kerry Group

Kerry Group plc, together with its subsidiaries, provides taste and nutrition solutions. The company operates in two segments, Taste & Nutrition, and Dairy Ireland. The Taste & Nutrition segment offers taste and nutrition solutions for the food, beverage, and pharmaceutical markets. The Dairy Ireland segment provides value-add dairy ingredients and consumer products, including functional proteins and nutritional bases. It operates in Ireland, rest of Europe, the Americas, the Asia Pacific, the Middle East, and Africa. Kerry Group plc was founded in 1972 and is headquartered in Tralee, Ireland.