Analyzing Farmer Bros. (NASDAQ:FARM) and Top Wealth Group (NASDAQ:TWG)

Farmer Bros. (NASDAQ:FARM) and Top Wealth Group (NASDAQ:TWG) are both small-cap retail/wholesale companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, risk, analyst recommendations, earnings and profitability.

Profitability

This table compares Farmer Bros. and Top Wealth Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Farmer Bros.	-2.92%	-27.45%	-6.48%
Top Wealth Group	N/A	N/A	N/A

Insider & Institutional Ownership

64.5% of Farmer Bros. shares are held by institutional investors. 4.6% of Farmer Bros. shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Farmer Bros. and Top Wealth Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Farmer Bros.	$344.84 million	0.11	-$3.88 million	($0.48)	-3.85
Top Wealth Group	$14.38 million	0.55	$2.44 million	N/A	N/A

Top Wealth Group has lower revenue, but higher earnings than Farmer Bros..

Analyst Ratings

This is a summary of recent ratings for Farmer Bros. and Top Wealth Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Farmer Bros.	0	0	2	0	3.00
Top Wealth Group	0	0	0	0	0.00

Farmer Bros. presently has a consensus price target of $5.25, indicating a potential upside of 183.78%. Given Farmer Bros.’s stronger consensus rating and higher probable upside, analysts plainly believe Farmer Bros. is more favorable than Top Wealth Group.

Summary

Farmer Bros. beats Top Wealth Group on 6 of the 11 factors compared between the two stocks.

About Farmer Bros.

Farmer Bros. Co. engages in the roasting, wholesale, equipment servicing, and distribution of coffee, tea, and other allied products in the United States. The company offers roast and ground coffee; frozen liquid coffee; flavoured and unflavoured iced and hot teas; culinary products, including spices, pancake and biscuit mixes, gravy and sauce mixes, soup bases, dressings, and syrups and sauces, as well as coffee filters, cups, sugar, and creamers; and other beverages comprising cappuccino, cocoa, granitas, and other blender-based beverages and concentrated and ready-to-drink cold brew and iced coffee. It also engage installation, repair, and refurbishment services for an array of coffee, tea, and juice equipment. The company serves small independent restaurants, foodservice operators, and large institutional buyers and national account customers. The company distributes its products through direct-store-delivery network, and common carriers or third-party distributors, as well as website. The company was founded in 1912 and is headquartered in Northlake, Texas.

About Top Wealth Group

Top Wealth Group Holding Limited, through its subsidiaries, provides caviar and caviar-based gourmet products in Hong Kong and internationally. The company also trades in caviars; and offers its products under the Imperial Cristal Caviar brand name. It serves food and beverage related distributors. The company was founded in 2009 and is based in Sai Wan, Hong Kong. Top Wealth Group Holding Limited operates as a subsidiary of Winwin Development Group Limited.