Financial Analysis: G. Willi-Food International (NASDAQ:WILC) and Hf Foods Group (NASDAQ:HFFG)

Hf Foods Group (NASDAQ:HFFG) and G. Willi-Food International (NASDAQ:WILC) are both small-cap consumer staples companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, profitability, institutional ownership and earnings.

Volatility and Risk

Hf Foods Group has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500. Comparatively, G. Willi-Food International has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500.

Earnings and Valuation

This table compares Hf Foods Group and G. Willi-Food International”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hf Foods Group	$1.24 billion	0.07	-$38.84 million	($0.68)	-2.29
G. Willi-Food International	$191.41 million	2.11	$28.35 million	$1.88	15.42

G. Willi-Food International has lower revenue, but higher earnings than Hf Foods Group. Hf Foods Group is trading at a lower price-to-earnings ratio than G. Willi-Food International, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Hf Foods Group and G. Willi-Food International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hf Foods Group	1	0	2	0	2.33
G. Willi-Food International	0	1	0	0	2.00

Hf Foods Group currently has a consensus target price of $5.50, suggesting a potential upside of 252.56%. Given Hf Foods Group’s stronger consensus rating and higher probable upside, research analysts clearly believe Hf Foods Group is more favorable than G. Willi-Food International.

Insider and Institutional Ownership

24.0% of Hf Foods Group shares are owned by institutional investors. Comparatively, 9.4% of G. Willi-Food International shares are owned by institutional investors. 2.1% of Hf Foods Group shares are owned by insiders. Comparatively, 79.1% of G. Willi-Food International shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Hf Foods Group and G. Willi-Food International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hf Foods Group	-2.90%	6.94%	2.72%
G. Willi-Food International	12.95%	12.61%	11.30%

Summary

G. Willi-Food International beats Hf Foods Group on 9 of the 14 factors compared between the two stocks.

About Hf Foods Group

HF Foods Group Inc., through its subsidiaries, markets and distributes Asian specialty food, seafood, fresh produce, frozen and dry food, and non-food products to Asian and Chinese restaurants, and other foodservice customers in the United States. The company offers seafood, including lobsters, shrimp, crabs, scallops, and fish; Asian specialty food items, including noodles, rice, dried mushrooms and beans, sauces and seasonings, and spring rolls, as well as canned products, such as preserved vegetables, bamboo shoots, and water chestnuts; and meat and poultry products, including beef, pork, chicken, and duck. It also provides fresh produce products, such as vegetables and fruits; commodities comprising oil, flour, sugar, and salt; and packaging and other items including take-out accessories. HF Foods Group Inc. is headquartered in Las Vegas, Nevada.

About G. Willi-Food International

G. Willi-Food International Ltd. designs, imports, markets, and distributes food products worldwide. The company offers mushrooms, artichoke, beans, asparagus, capers, corn kernels, baby corn, palm hearts, vine leaves, sour pickles, mixed pickled vegetables, pickled peppers, olives, garlic, roasted eggplant sun, and dried tomatoes; and canned fish comprising tuna, sardine, anchovies, smoked and pressed cod liver, herring, fish paste, and salmon products. It also provides pineapples, peaches, apricots, pears, mangos, cherries, litchis, and fruit cocktail; olive, sunflower, soybean, corn, and rapeseed oils; dairy and dairy substitutes consisting of cheese, feta, Bulgarian cubes, goat cheese, fetina, butter, butter spread, margarine, melted cheese, cheese alternative, condensed milk, whipped cream, yogurt, frozen pizza, and other products; and dried fruits, nuts, and beans, such as figs, apricots, organic chestnuts, sunflower seeds, walnuts, pine nuts, cashews, banana chips, pistachios, and peanuts. In addition, the company offers instant noodle soup, frozen edamame soybean, freeze dried instant coffee, bagel, breadstick, lemon juice, halva, Turkish delight, cookies, vinegar, sweet pastry and crackers, sauce, corn flour, rice, pasta, spaghetti and noodles, breakfast cereals, corn flakes, rusks, tortilla, dried apples snacks, desert, ice cream, and light and alcoholic beverages. It markets its products under the Willi-Food, Euro European Dairies, Donna Rozza, Manchow, Gold Frost, Tifeeret, the Chef Dish, Art Coffe, Mr Chang, Muchi, Euro Butter, Euro Spread, Euro Cheese, Euro Cream, Euro Dessert, Euro Veg, Ha-Bulgaria, Gelato, Pinukim, Emma, Better Food, Kidoos, and TenBo brand names. The company was formerly known as G. Willi-Food Ltd. and changed its name to G. Willi-Food International Ltd. in June 1996. The company was incorporated in 1994 and is headquartered in Yavne, Israel. G. Willi-Food International Ltd. operates as a subsidiary of Willi-Food Investments Ltd.