Head-To-Head Review: China Marine Food Group (OTCMKTS:CMFO) and Smithfield Foods (NASDAQ:SFD)

China Marine Food Group (OTCMKTS:CMFO) and Smithfield Foods (NASDAQ:SFD) are both consumer staples companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, institutional ownership, profitability, valuation, analyst recommendations, risk and dividends.

Analyst Recommendations

This is a breakdown of recent ratings for China Marine Food Group and Smithfield Foods, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
China Marine Food Group	0	0	0	0	0.00
Smithfield Foods	0	1	5	0	2.83

Smithfield Foods has a consensus target price of $29.88, suggesting a potential upside of 18.93%. Given Smithfield Foods’ stronger consensus rating and higher probable upside, analysts clearly believe Smithfield Foods is more favorable than China Marine Food Group.

Earnings and Valuation

This table compares China Marine Food Group and Smithfield Foods”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
China Marine Food Group	N/A	N/A	-$10,000.00	N/A	N/A
Smithfield Foods	$15.53 billion	0.64	$987.00 million	$2.56	9.81

Smithfield Foods has higher revenue and earnings than China Marine Food Group.

Profitability

This table compares China Marine Food Group and Smithfield Foods’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
China Marine Food Group	N/A	N/A	N/A
Smithfield Foods	6.48%	15.54%	8.76%

Risk and Volatility

China Marine Food Group has a beta of -61.92, meaning that its stock price is 6,292% less volatile than the S&P 500. Comparatively, Smithfield Foods has a beta of -0.49, meaning that its stock price is 149% less volatile than the S&P 500.

Summary

Smithfield Foods beats China Marine Food Group on 9 of the 9 factors compared between the two stocks.

About China Marine Food Group

China Marine Food Group Limited, through its subsidiaries, engages in the processing, distribution, and sale of processed seafood products and algae-based beverage products primarily in the People's Republic of China. The company offers dried processed seafood products, such as roasted squid, roasted file fish, roasted prawns, shredded roasted squid, barbecued squid, sliced barbecued squid, sliced roasted octopus, spicy sliced octopus, spicy baby squid, spicy sliced squid, and spicy squid head products. China Marine Food Group Limited sells its dried and flavored seafood-based snack foods under the Mingxiang brand; and algae-based beverage products under the Hi-Power brand. The company also sells fresh and frozen marine catch, including Squid (Loligo bleekeri) and horse mackerel. China Marine Food Group Limited was founded in 1999 and is based in Shishi, the People's Republic of China.

About Smithfield Foods

Smithfield Foods, Inc. produces and markets a variety of fresh meat and packaged meats products both domestically and internationally. The Company operates in four segments: Pork, Hog Production, International and Corporate, each of which consists of a number of subsidiaries, joint ventures and other investments. The Pork segment consists mainly of its three wholly owned United States fresh pork and packaged meats subsidiaries: The Smithfield Packing Company, Inc. (Smithfield Packing), Farmland Foods, Inc. (Farmland Foods) and John Morrell Food Group (John Morrell). The Hog Production segment consists of the Company’s hog production operations located in the United States. On September 2012 (fiscal 2013), the Company acquired a 70% controlling interest in American Skin Food Group, LLC. Effective September 26, 2013, Shuanghui International Holdings Ltd merged with Smithfield Foods Inc, a producer and wholesaler of pork meat products.