Financial Review: Simply Good Foods (NASDAQ:SMPL) and Centennial Specialty Foods (OTCMKTS:CHLE)

Centennial Specialty Foods (OTCMKTS:CHLE) and Simply Good Foods (NASDAQ:SMPL) are both consumer staples companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, risk, profitability and dividends.

Insider and Institutional Ownership

88.5% of Simply Good Foods shares are held by institutional investors. 17.2% of Centennial Specialty Foods shares are held by insiders. Comparatively, 8.8% of Simply Good Foods shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Centennial Specialty Foods and Simply Good Foods”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Centennial Specialty Foods	N/A	N/A	N/A	N/A	N/A
Simply Good Foods	$1.45 billion	0.62	$103.61 million	($2.17)	-4.71

Simply Good Foods has higher revenue and earnings than Centennial Specialty Foods.

Volatility & Risk

Centennial Specialty Foods has a beta of 2.71, suggesting that its stock price is 171% more volatile than the S&P 500. Comparatively, Simply Good Foods has a beta of 0.15, suggesting that its stock price is 85% less volatile than the S&P 500.

Profitability

This table compares Centennial Specialty Foods and Simply Good Foods’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Centennial Specialty Foods	N/A	N/A	N/A
Simply Good Foods	-14.28%	9.34%	6.67%

Analyst Recommendations

This is a summary of current recommendations and price targets for Centennial Specialty Foods and Simply Good Foods, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Centennial Specialty Foods	0	0	0	0	0.00
Simply Good Foods	1	9	3	0	2.15

Simply Good Foods has a consensus target price of $14.45, suggesting a potential upside of 41.57%. Given Simply Good Foods’ stronger consensus rating and higher possible upside, analysts clearly believe Simply Good Foods is more favorable than Centennial Specialty Foods.

Summary

Simply Good Foods beats Centennial Specialty Foods on 7 of the 10 factors compared between the two stocks.

About Centennial Specialty Foods

Centennial Specialty Foods Corp. markets, sells, and distributes branded ethnic Southwestern sauces and food products in Colorado. It offers green chile sauces, and chili con carne or chili products. The company’s sauces and chili products come in varieties with pork, chicken, beef, and no meat. Its Ellis products include refried beans, tamale products, chili products, bean products, and Ellis burrito sauce. The company sells its products through grocery stores, superstores, and club stores primarily in Colorado, Arizona, and California. Centennial Specialty Foods Corp. was founded in 2003 and is headquartered in Centennial, Colorado.

About Simply Good Foods

The Simply Good Foods Company operates as a consumer-packaged food and beverage company in North America and internationally. The company develops, markets, and sells snacks and meal replacements. It offers protein bars, ready-to-drink shakes, sweet and salty snacks, cookies, protein chips, and recipes under the Atkins and Quest brand names. The company also provides confectionery products, such as full-size and mini peanut butter cups, and fudgey brownie and gooey caramel candy bites, chocolatey coated peanut candies, and coconutty caramel candy bars under Atkins Endulge brand name.It distributes its products to various retail channels, such as mass merchandise, grocery and drug channels, club stores, convenience stores, gas stations, and other channels. The company also sells its products through e-commerce channels, including questnutrition.com, atkins.com, amazon.com and others. The Simply Good Foods Company was founded in 2017 and is headquartered in Denver, Colorado.