Critical Contrast: Kraft Heinz (NASDAQ:KHC) & Mama’s Creations (NASDAQ:MAMA)

Kraft Heinz (NASDAQ:KHC) and Mama’s Creations (NASDAQ:MAMA) are both consumer staples companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, dividends, earnings, valuation, risk, analyst recommendations and institutional ownership.

Earnings & Valuation

This table compares Kraft Heinz and Mama’s Creations”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kraft Heinz	$24.94 billion	1.07	-$5.85 billion	($4.86)	-4.65
Mama’s Creations	$171.71 million	3.59	$5.29 million	$0.12	126.25

Mama’s Creations has lower revenue, but higher earnings than Kraft Heinz. Kraft Heinz is trading at a lower price-to-earnings ratio than Mama’s Creations, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Kraft Heinz has a beta of 0.08, suggesting that its stock price is 92% less volatile than the S&P 500. Comparatively, Mama’s Creations has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500.

Insider & Institutional Ownership

78.2% of Kraft Heinz shares are owned by institutional investors. Comparatively, 45.2% of Mama’s Creations shares are owned by institutional investors. 0.2% of Kraft Heinz shares are owned by insiders. Comparatively, 1.0% of Mama’s Creations shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Kraft Heinz and Mama’s Creations’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kraft Heinz	-23.05%	7.26%	3.70%
Mama’s Creations	3.06%	15.31%	8.85%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Kraft Heinz and Mama’s Creations, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kraft Heinz	5	14	0	1	1.85
Mama’s Creations	0	1	5	0	2.83

Kraft Heinz presently has a consensus price target of $22.69, indicating a potential upside of 0.48%. Mama’s Creations has a consensus price target of $18.80, indicating a potential upside of 24.09%. Given Mama’s Creations’ stronger consensus rating and higher possible upside, analysts clearly believe Mama’s Creations is more favorable than Kraft Heinz.

Summary

Mama’s Creations beats Kraft Heinz on 12 of the 15 factors compared between the two stocks.

About Kraft Heinz

The Kraft Heinz Company, together with its subsidiaries, manufactures and markets food and beverage products in North America and internationally. Its products include condiments and sauces, cheese and dairy products, meals, meats, refreshment beverages, coffee, and other grocery products under the Kraft, Oscar Mayer, Heinz, Philadelphia, Lunchables, Velveeta, Ore-Ida, Maxwell House, Kool-Aid, Jell-O, Heinz, ABC, Master, Quero, Kraft, Golden Circle, Wattie's, Pudliszki, and Plasmon brands. It sells its products through its own sales organizations, as well as through independent brokers, agents, and distributors to chain, wholesale, cooperative, and independent grocery accounts; convenience, value, and club stores; pharmacies and drug stores; mass merchants; foodservice distributors; institutions, including hotels, restaurants, bakeries, hospitals, health care facilities, and government agencies; and online through various e-commerce platforms and retailers. The company was formerly known as H.J. Heinz Holding Corporation and changed its name to The Kraft Heinz Company in July 2015. The Kraft Heinz Company was founded in 1869 and is based in Pittsburgh, Pennsylvania.

About Mama’s Creations

Mama’s Creations, Inc. engages in the marketing, manufacturing, and distribution of beef meatballs with sauce, turkey meatballs with sauce, beef meat loaf, sausage and peppers, chicken parmesan, and other similar meats and sauces. Its products include beef meatballs, turkey meatballs, stuffed meatballs, lasagna roll ups, retail ready meals, bulk deli, single-size pasta bowls, and packaged refrigerated products. Its brands include MamaMancini’s, Creative Salads, and The Olive Branch. The company was founded by Daniel Dougherty on July 22, 2009 and is headquartered in East Rutherford, NJ.