Critical Comparison: Pilgrim’s Pride (NASDAQ:PPC) & Barfresh Food Group (NASDAQ:BRFH)

Barfresh Food Group (NASDAQ:BRFH – Get Free Report) and Pilgrim’s Pride (NASDAQ:PPC – Get Free Report) are both consumer staples companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, earnings, valuation, profitability and dividends.

Risk and Volatility

Barfresh Food Group has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500. Comparatively, Pilgrim’s Pride has a beta of 0.31, meaning that its share price is 69% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Barfresh Food Group and Pilgrim’s Pride, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Barfresh Food Group 1 1 0 0 1.50
Pilgrim’s Pride 1 5 2 0 2.12

Pilgrim’s Pride has a consensus target price of $36.50, indicating a potential upside of 29.75%. Given Pilgrim’s Pride’s stronger consensus rating and higher possible upside, analysts clearly believe Pilgrim’s Pride is more favorable than Barfresh Food Group.

Earnings and Valuation

This table compares Barfresh Food Group and Pilgrim’s Pride”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Barfresh Food Group $14.21 million 0.69 -$2.69 million ($0.23) -2.62
Pilgrim’s Pride $18.50 billion 0.36 $1.08 billion $2.30 12.23

Pilgrim’s Pride has higher revenue and earnings than Barfresh Food Group. Barfresh Food Group is trading at a lower price-to-earnings ratio than Pilgrim’s Pride, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

22.7% of Barfresh Food Group shares are owned by institutional investors. Comparatively, 16.6% of Pilgrim’s Pride shares are owned by institutional investors. 26.7% of Barfresh Food Group shares are owned by insiders. Comparatively, 82.2% of Pilgrim’s Pride shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Barfresh Food Group and Pilgrim’s Pride’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Barfresh Food Group -17.88% -295.15% -30.31%
Pilgrim’s Pride 2.96% 21.70% 7.90%

Summary

Pilgrim’s Pride beats Barfresh Food Group on 11 of the 14 factors compared between the two stocks.

About Barfresh Food Group

(Get Free Report)

Barfresh Food Group, Inc., together with its subsidiaries, manufactures and distributes ready-to-drink and ready-to-blend frozen beverages in the United States. It offers smoothies, shakes and frappes in various formats comprising ready-to-drink smoothie, easy pour, juice concentrates, and single serve. The company was founded in 2009 and is based in Los Angeles, California.

About Pilgrim’s Pride

(Get Free Report)

Pilgrim’s Pride Corp. engages in the production, processing, marketing, and distribution of fresh, frozen and value-added chicken and pork products to retailers, distributors, and foodservice operators. It operates through the following segments: U.S., U.K. and Europe, and Mexico. The company was founded by Lonnie A. Pilgrim and Aubrey Pilgrim on October 2, 1946, and is headquartered in Greeley, CO.

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