Contrasting BAB (OTCMKTS:BABB) and Seneca Foods (NASDAQ:SENEA)

BAB (OTCMKTS:BABB) and Seneca Foods (NASDAQ:SENEA) are both small-cap consumer staples companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, institutional ownership, valuation, profitability, analyst recommendations, earnings and dividends.

Earnings & Valuation

This table compares BAB and Seneca Foods”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BAB	$3.44 million	1.94	$560,000.00	$0.08	11.50
Seneca Foods	$1.61 billion	0.56	$41.22 million	$13.00	10.25

Seneca Foods has higher revenue and earnings than BAB. Seneca Foods is trading at a lower price-to-earnings ratio than BAB, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for BAB and Seneca Foods, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BAB	0	0	0	0	0.00
Seneca Foods	0	0	1	0	3.00

Insider & Institutional Ownership

42.5% of Seneca Foods shares are held by institutional investors. 33.7% of BAB shares are held by company insiders. Comparatively, 8.4% of Seneca Foods shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

BAB has a beta of 0.22, suggesting that its share price is 78% less volatile than the S&P 500. Comparatively, Seneca Foods has a beta of 0.03, suggesting that its share price is 97% less volatile than the S&P 500.

Profitability

This table compares BAB and Seneca Foods’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BAB	16.50%	16.48%	11.69%
Seneca Foods	5.58%	12.30%	6.65%

Summary

BAB beats Seneca Foods on 7 of the 13 factors compared between the two stocks.

About BAB

BAB, Inc. franchises and licenses bagel and muffin retail units under the Big Apple Bagels (BAB), My Favorite Muffin (MFM), and SweetDuet (SD) trade names in the United States. It's BAB franchised brand includes daily baked bagels, flavored cream cheeses, premium coffees, gourmet bagel sandwiches, and other related products; and MFM brand comprises various freshly baked muffins and coffees, as well as units operating as My Favorite Muffin Your All Day Bakery Café features specialty bagel sandwiches and related products. The company's SD brand includes frozen yogurt products. BAB, Inc. was founded in 1993 and is based in Deerfield, Illinois.

About Seneca Foods

Seneca Foods Corporation provides packaged fruits and vegetables in the United States and internationally. The company offers canned, frozen, and jarred produce; jarred fruit; and snack chips and other food products under the private label, as well as under various national and regional brands that the company owns or licenses, including Seneca, Libby’s, Aunt Nellie’s, Cherryman, Green Valley, and READ. In addition, it packs canned and frozen vegetables under contract packing agreements. Further, the company engages in the sale of cans, ends, and seeds, as well as trucking and aircraft operations. It provides its products to grocery outlets, including supermarkets, mass merchandisers, limited assortment stores, club stores, and dollar stores; specialty retailers; and food service distributors, restaurant chains, industrial markets, other food packagers, and export customers in approximately 55 countries, as well as federal, state, and local governments for school and other feeding programs. Seneca Foods Corporation was incorporated in 1949 and is headquartered in Fairport, New York.