Analyzing Nomad Foods (NYSE:NOMD) and Cuisine Solutions (OTCMKTS:CUSI)

Nomad Foods (NYSE:NOMD) and Cuisine Solutions (OTCMKTS:CUSI) are both small-cap consumer staples companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, institutional ownership, earnings and profitability.

Earnings and Valuation

This table compares Nomad Foods and Cuisine Solutions”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nomad Foods	$2.99 billion	0.46	$154.66 million	$1.03	9.64
Cuisine Solutions	N/A	N/A	N/A	N/A	N/A

Nomad Foods has higher revenue and earnings than Cuisine Solutions.

Analyst Ratings

This is a summary of current ratings and price targets for Nomad Foods and Cuisine Solutions, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nomad Foods	1	2	3	0	2.33
Cuisine Solutions	0	0	0	0	0.00

Nomad Foods currently has a consensus price target of $12.50, indicating a potential upside of 25.86%. Given Nomad Foods’ stronger consensus rating and higher probable upside, analysts clearly believe Nomad Foods is more favorable than Cuisine Solutions.

Volatility and Risk

Nomad Foods has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500. Comparatively, Cuisine Solutions has a beta of -0.33, suggesting that its stock price is 133% less volatile than the S&P 500.

Profitability

This table compares Nomad Foods and Cuisine Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nomad Foods	4.43%	9.05%	3.61%
Cuisine Solutions	N/A	N/A	N/A

Institutional and Insider Ownership

75.3% of Nomad Foods shares are owned by institutional investors. 17.3% of Nomad Foods shares are owned by company insiders. Comparatively, 61.1% of Cuisine Solutions shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Nomad Foods beats Cuisine Solutions on 9 of the 10 factors compared between the two stocks.

About Nomad Foods

Nomad Foods Limited, together with its subsidiaries, manufactures, markets, and distributes a range of frozen food products in the United Kingdom and internationally. The company offers frozen fish products, including fish fingers, coated fish, and natural fish; ready-to-cook vegetable products, such as peas and spinach; and frozen poultry and meat products comprising nuggets, grills, and burgers. It also provides meal products that include ready-to-cook noodles, pasta, lasagna, pancakes, and other ready-made meals; ice creams, such as in-home and out-of-home ice creams; and other products consisting of soups, pizzas, bakery goods, and meat substitutes. The company sells its products to supermarkets and food retail chains primarily under the Birds Eye, Green Cuisine, iglo, Findus, Aunt Bessie's, Goodfella's, Frikom, Ledo, La Cocinera, and Belviva brand names. Nomad Foods Limited was founded in 2014 and is headquartered in Feltham, the United Kingdom.

About Cuisine Solutions

Cuisine Solutions, Inc. produces and markets various food products in the United States. Its products include beef, lamb, pork and veal, pastas, poultry, sauces, seafood, and vegetarian meals. The company offers its products to foodservice, on board services, retail, military, and national restaurant chain industries. Cuisine Solutions, Inc. was founded in 1972 and is based in Sterling, Virginia.