Synergy CHC (NASDAQ:SNYR) and Village Farms International (NASDAQ:VFF) Critical Analysis

Synergy CHC (NASDAQ:SNYR) and Village Farms International (NASDAQ:VFF) are both small-cap consumer staples companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, risk, profitability and dividends.

Insider and Institutional Ownership

12.1% of Village Farms International shares are held by institutional investors. 32.9% of Synergy CHC shares are held by insiders. Comparatively, 13.2% of Village Farms International shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Synergy CHC and Village Farms International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Synergy CHC	-60.02%	N/A	-30.30%
Village Farms International	18.57%	8.84%	6.30%

Volatility and Risk

Synergy CHC has a beta of -0.14, indicating that its share price is 114% less volatile than the S&P 500. Comparatively, Village Farms International has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Synergy CHC and Village Farms International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Synergy CHC	2	0	2	0	2.00
Village Farms International	1	1	0	0	1.50

Synergy CHC presently has a consensus price target of $6.25, indicating a potential upside of 2,933.98%. Given Synergy CHC’s stronger consensus rating and higher probable upside, equities analysts plainly believe Synergy CHC is more favorable than Village Farms International.

Earnings & Valuation

This table compares Synergy CHC and Village Farms International”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Synergy CHC	$30.38 million	0.10	-$12.34 million	($1.40)	-0.15
Village Farms International	$215.94 million	1.03	$32.44 million	$0.35	5.56

Village Farms International has higher revenue and earnings than Synergy CHC. Synergy CHC is trading at a lower price-to-earnings ratio than Village Farms International, indicating that it is currently the more affordable of the two stocks.

Summary

Village Farms International beats Synergy CHC on 10 of the 14 factors compared between the two stocks.

About Synergy CHC

Synergy CHC Corp. engages in the marketing and distribution of branded health and wellness products. The company was founded on December 29, 2010 and is headquartered in Westbrook, ME.

About Village Farms International

Village Farms International, Inc., together with its subsidiaries, produces, markets, and sells greenhouse-grown tomatoes, bell peppers, and cucumbers in North America. It operates through four segments: Produce, Cannabis-Canada, Cannabis-U.S., and Energy. The company also produces and supplies cannabis products to other licensed providers and provincial governments in Canada and internationally; develops and sells cannabinoid-based health and wellness products, including ingestible, edibles, and topical applications; and produces power. It markets and distributes its products under the Village Farms brand name to retail supermarkets and fresh food distribution companies, as well as products produced under exclusive and non-exclusive arrangements from greenhouse supply partners. The company was formerly known as Village Farms Canada Inc. and changed its name to Village Farms International, Inc. in December 2009. Village Farms International, Inc. was founded in 1989 and is headquartered in Delta, Canada.