Head to Head Review: Drinks Americas (OTCMKTS:DKAM) and Natural Grocers by Vitamin Cottage (NYSE:NGVC)

Drinks Americas (OTCMKTS:DKAM) and Natural Grocers by Vitamin Cottage (NYSE:NGVC) are both retail/wholesale companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Analyst Ratings

This is a summary of recent ratings for Drinks Americas and Natural Grocers by Vitamin Cottage, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Drinks Americas	0	0	0	0	0.00
Natural Grocers by Vitamin Cottage	0	1	0	0	2.00

Given Drinks Americas’ higher possible upside, equities research analysts clearly believe Drinks Americas is more favorable than Natural Grocers by Vitamin Cottage.

Profitability

This table compares Drinks Americas and Natural Grocers by Vitamin Cottage’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Drinks Americas	N/A	N/A	N/A
Natural Grocers by Vitamin Cottage	3.31%	23.47%	6.63%

Volatility and Risk

Drinks Americas has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500. Comparatively, Natural Grocers by Vitamin Cottage has a beta of 1.56, meaning that its stock price is 56% more volatile than the S&P 500.

Institutional and Insider Ownership

32.0% of Natural Grocers by Vitamin Cottage shares are held by institutional investors. 58.8% of Natural Grocers by Vitamin Cottage 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 Drinks Americas and Natural Grocers by Vitamin Cottage”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Drinks Americas	N/A	N/A	N/A	N/A	N/A
Natural Grocers by Vitamin Cottage	$1.24 billion	0.72	$33.94 million	$1.88	20.81

Natural Grocers by Vitamin Cottage has higher revenue and earnings than Drinks Americas.

Summary

Natural Grocers by Vitamin Cottage beats Drinks Americas on 8 of the 9 factors compared between the two stocks.

About Drinks Americas

Drinks Americas Holdings, Ltd. produces, imports, distributes, and markets premium wine and spirits, and alcoholic beverages to beverage wholesalers in the United States and internationally. The company offers premium authentic Mexican beer products under the brand names of Day of the Dead Beer, Mexicali, Rio Bravo, Red Pig, and Chili Beer. The company also markets and distributes non-alcoholic beverages. It offers its products through various retailers and restaurant chains. Drinks Americas Holdings, Ltd. was founded in 1986 and is based in Los Angeles, California.

About Natural Grocers by Vitamin Cottage

Natural Grocers by Vitamin Cottage, Inc., together with its subsidiaries, retails natural and organic groceries, and dietary supplements in the United States. The company’s stores offer natural and organic grocery products, such as organic produce; private label repackaged bulk products, including dried fruits, nuts, grains, granolas, teas, herbs, and spices, as well as peanut and almond butters; private label products comprising grocery staples, household products, bulk foods, and vitamins and dietary supplements, as well as organic eggs, organic flavored coffee, and organic mustard; dry, frozen, and canned groceries; meat and seafood products; dairy products, dairy substitutes, and eggs; prepared foods; bread and baked products; beverages; and beer, wine, and hard cider products. Its stores also provide name-brand supplements, as well as private label dietary supplements; body care products consisting of cosmetics, skin care, hair care, fragrance, and personal care products containing natural and organic ingredients; pet care and food products; books and handouts; household and general merchandise, including cleaning supplies, paper products, and dish and laundry soaps, as well as other common household products, such as diapers; and books and handouts. The company operates its retail stores under the Natural Grocers by Vitamin Cottage trademark, as well as Vitamin Cottage Natural Grocers and Health Hotline trademarks. The company also offers science-based nutrition education programs to help customers make informed health and nutrition choices. Natural Grocers by Vitamin Cottage, Inc. was founded in 1955 and is headquartered in Lakewood, Colorado.