Comparing Mama’s Creations (NASDAQ:MAMA) & US Foods (NYSE:USFD)

Mama’s Creations (NASDAQ:MAMA) and US Foods (NYSE:USFD) are both consumer staples companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, profitability, risk, dividends, institutional ownership and valuation.

Institutional and Insider Ownership

45.2% of Mama’s Creations shares are held by institutional investors. Comparatively, 98.8% of US Foods shares are held by institutional investors. 6.5% of Mama’s Creations shares are held by insiders. Comparatively, 0.7% of US Foods shares are held by 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 & Earnings

This table compares Mama’s Creations and US Foods”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mama’s Creations	$171.71 million	3.65	$5.29 million	$0.12	128.50
US Foods	$39.42 billion	0.46	$676.00 million	$2.97	27.65

US Foods has higher revenue and earnings than Mama’s Creations. US Foods is trading at a lower price-to-earnings ratio than Mama’s Creations, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Mama’s Creations has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500. Comparatively, US Foods has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Mama’s Creations and US Foods, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mama’s Creations	0	1	5	0	2.83
US Foods	0	3	10	0	2.77

Mama’s Creations presently has a consensus target price of $18.80, indicating a potential upside of 21.92%. US Foods has a consensus target price of $106.75, indicating a potential upside of 30.01%. Given US Foods’ higher possible upside, analysts plainly believe US Foods is more favorable than Mama’s Creations.

Profitability

This table compares Mama’s Creations and US Foods’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mama’s Creations	3.06%	15.31%	8.85%
US Foods	1.71%	19.37%	6.14%

Summary

US Foods beats Mama’s Creations on 8 of the 14 factors compared between the two stocks.

About Mama’s Creations

Mama’s Creations, Inc. engages in the marketing, manufacturing, and distribution of beef meatballs with sauce, turkey meatballs with sauce, beef meat loaf, sausage and peppers, chicken parmesan, and other similar meats and sauces. Its products include beef meatballs, turkey meatballs, stuffed meatballs, lasagna roll ups, retail ready meals, bulk deli, single-size pasta bowls, and packaged refrigerated products. Its brands include MamaMancini’s, Creative Salads, and The Olive Branch. The company was founded by Daniel Dougherty on July 22, 2009 and is headquartered in East Rutherford, NJ.

About US Foods

US Foods Holding Corp., together with its subsidiaries, engages in marketing, sale, and distribution of fresh, frozen, and dry food and non-food products to foodservice customers in the United States. The company's customers include independently owned single and multi-unit restaurants, regional concepts, national restaurant chains, hospitals, nursing homes, hotels and motels, country clubs, government and military organizations, colleges and universities, and retail locations. The company was formerly known as USF Holding Corp. and changed its name to US Foods Holding Corp. in February 2016. US Foods Holding Corp. was incorporated in 2007 and is headquartered in Rosemont, Illinois.