Pilgrim’s Pride (NASDAQ:PPC) vs. Tofutti Brands (OTCMKTS:TOFB) Financial Contrast

Tofutti Brands (OTCMKTS:TOFB) and Pilgrim’s Pride (NASDAQ:PPC) are both consumer staples companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, profitability and dividends.

Profitability

This table compares Tofutti Brands and Pilgrim’s Pride’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tofutti Brands	-13.09%	-45.27%	-29.44%
Pilgrim’s Pride	2.96%	21.70%	7.90%

Risk and Volatility

Tofutti Brands has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500. Comparatively, Pilgrim’s Pride has a beta of 0.29, indicating that its stock price is 71% less volatile than the S&P 500.

Valuation and Earnings

This table compares Tofutti Brands and Pilgrim’s Pride”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tofutti Brands	$7.78 million	0.29	-$780,000.00	($0.19)	-2.34
Pilgrim’s Pride	$18.50 billion	0.37	$1.08 billion	$2.30	12.38

Pilgrim’s Pride has higher revenue and earnings than Tofutti Brands. Tofutti Brands is trading at a lower price-to-earnings ratio than Pilgrim’s Pride, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations for Tofutti Brands and Pilgrim’s Pride, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tofutti Brands	0	0	0	0	0.00
Pilgrim’s Pride	1	5	2	0	2.12

Pilgrim’s Pride has a consensus price target of $36.50, indicating a potential upside of 28.18%. Given Pilgrim’s Pride’s stronger consensus rating and higher probable upside, analysts clearly believe Pilgrim’s Pride is more favorable than Tofutti Brands.

Institutional & Insider Ownership

5.0% of Tofutti Brands shares are owned by institutional investors. Comparatively, 16.6% of Pilgrim’s Pride shares are owned by institutional investors. 9.3% of Tofutti Brands shares are owned by insiders. Comparatively, 82.2% of Pilgrim’s Pride shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Pilgrim’s Pride beats Tofutti Brands on 13 of the 14 factors compared between the two stocks.

About Tofutti Brands

Tofutti Brands Inc. engages in the development, production, and marketing of plant based, dairy free vegan frozen desserts, cheeses, and other food products under the TOFUTTI brand in the United States, Europe, the Middle East, the Asia Pacific, and Africa. The company offers frozen desserts, including frozen sandwiches and chocolate wafers; ice cream sandwiches; dairy free vegan cheese products, such as cream cheese, sour cream, cheese slices, and dairy free ricotta cheese alternatives; spreads; and frozen food products. It sells its products through independent unaffiliated food brokers to distributors, as well as on a direct basis to retail chain accounts or to warehouse accounts that directly service chain accounts. Tofutti Brands, Inc. was founded in 1981 and is based in Cranford, New Jersey.

About Pilgrim’s Pride

Pilgrim’s Pride Corp. engages in the production, processing, marketing, and distribution of fresh, frozen and value-added chicken and pork products to retailers, distributors, and foodservice operators. It operates through the following segments: U.S., U.K. and Europe, and Mexico. The company was founded by Lonnie A. Pilgrim and Aubrey Pilgrim on October 2, 1946, and is headquartered in Greeley, CO.