Westrock Coffee (NASDAQ:WEST) vs. Simply Good Foods (NASDAQ:SMPL) Financial Contrast

Simply Good Foods (NASDAQ:SMPL) and Westrock Coffee (NASDAQ:WEST) are both small-cap consumer staples companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.

Earnings and Valuation

This table compares Simply Good Foods and Westrock Coffee”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Simply Good Foods	$1.45 billion	0.59	$103.61 million	($2.17)	-4.42
Westrock Coffee	$1.19 billion	0.66	-$90.44 million	($0.66)	-12.26

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

Analyst Recommendations

This is a summary of current recommendations for Simply Good Foods and Westrock Coffee, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Simply Good Foods	1	9	3	0	2.15
Westrock Coffee	1	1	3	0	2.40

Simply Good Foods presently has a consensus price target of $14.45, indicating a potential upside of 50.57%. Westrock Coffee has a consensus price target of $10.00, indicating a potential upside of 23.61%. Given Simply Good Foods’ higher possible upside, analysts clearly believe Simply Good Foods is more favorable than Westrock Coffee.

Profitability

This table compares Simply Good Foods and Westrock Coffee’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Simply Good Foods	-14.28%	9.34%	6.67%
Westrock Coffee	-4.88%	-2,145.68%	-3.44%

Volatility and Risk

Simply Good Foods has a beta of 0.17, indicating that its stock price is 83% less volatile than the S&P 500. Comparatively, Westrock Coffee has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500.

Institutional & Insider Ownership

88.5% of Simply Good Foods shares are owned by institutional investors. Comparatively, 45.1% of Westrock Coffee shares are owned by institutional investors. 8.8% of Simply Good Foods shares are owned by company insiders. Comparatively, 25.4% of Westrock Coffee shares are owned 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.

Summary

Simply Good Foods beats Westrock Coffee on 7 of the 13 factors compared between the two stocks.

About Simply Good Foods

The Simply Good Foods Company operates as a consumer-packaged food and beverage company in North America and internationally. The company develops, markets, and sells snacks and meal replacements. It offers protein bars, ready-to-drink shakes, sweet and salty snacks, cookies, protein chips, and recipes under the Atkins and Quest brand names. The company also provides confectionery products, such as full-size and mini peanut butter cups, and fudgey brownie and gooey caramel candy bites, chocolatey coated peanut candies, and coconutty caramel candy bars under Atkins Endulge brand name.It distributes its products to various retail channels, such as mass merchandise, grocery and drug channels, club stores, convenience stores, gas stations, and other channels. The company also sells its products through e-commerce channels, including questnutrition.com, atkins.com, amazon.com and others. The Simply Good Foods Company was founded in 2017 and is headquartered in Denver, Colorado.

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.