Barfresh Food Group (NASDAQ:BRFH) vs. Westrock Coffee (NASDAQ:WEST) Critical Review

Westrock Coffee (NASDAQ:WEST) and Barfresh Food Group (NASDAQ:BRFH) are both small-cap consumer staples companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, dividends, risk, institutional ownership and earnings.

Valuation & Earnings

This table compares Westrock Coffee and Barfresh Food Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Westrock Coffee	$1.19 billion	0.64	-$90.44 million	($0.75)	-10.44
Barfresh Food Group	$14.21 million	2.68	-$2.69 million	($0.17)	-13.88

Barfresh Food Group has lower revenue, but higher earnings than Westrock Coffee. Barfresh Food Group is trading at a lower price-to-earnings ratio than Westrock Coffee, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

45.1% of Westrock Coffee shares are held by institutional investors. Comparatively, 22.7% of Barfresh Food Group shares are held by institutional investors. 27.7% of Westrock Coffee shares are held by company insiders. Comparatively, 26.7% of Barfresh Food Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Westrock Coffee	-5.59%	-2,145.68%	-3.52%
Barfresh Food Group	-15.34%	-148.74%	-27.14%

Volatility & Risk

Westrock Coffee has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500. Comparatively, Barfresh Food Group has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Westrock Coffee and Barfresh Food Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Westrock Coffee	1	1	3	0	2.40
Barfresh Food Group	2	0	1	0	1.67

Westrock Coffee currently has a consensus target price of $9.00, indicating a potential upside of 14.94%. Barfresh Food Group has a consensus target price of $6.00, indicating a potential upside of 154.24%. Given Barfresh Food Group’s higher possible upside, analysts plainly believe Barfresh Food Group is more favorable than Westrock Coffee.

Summary

Westrock Coffee beats Barfresh Food Group on 9 of the 14 factors compared between the two stocks.

About Westrock Coffee

Westrock Coffee Company, LLC operates as an integrated coffee, tea, flavors, extracts, and ingredients solutions provider in the United States and internationally. It operates through two segments, Beverage Solutions, and Sustainable Sourcing & Traceability (SS&T). The Beverage Solutions segment provides various packaging, including branded and private label coffee in bags, fractional packs, and single serve cups, as well as extract solutions for applications in cold brew and ready-to-drink offerings. The SS&T segment engages in delivery and settlement of forward sales contracts for green coffee. The company offers coffee sourcing, supply chain management, product development, roasting, packaging, and distribution services to the retail, food service and restaurant, convenience store and travel center, non-commercial account, CPG, and hospitality industries. Westrock Coffee Company, LLC was founded in 2009 and is headquartered in Little Rock, Arkansas.

About Barfresh Food Group

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.