Analyzing Ingles Markets (NASDAQ:IMKTA) and Hf Foods Group (NASDAQ:HFFG)

Ingles Markets (NASDAQ:IMKTA) and Hf Foods Group (NASDAQ:HFFG) are both small-cap consumer staples companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, risk, valuation, institutional ownership, analyst recommendations and earnings.

Analyst Ratings

This is a summary of current recommendations and price targets for Ingles Markets and Hf Foods Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ingles Markets	0	0	1	0	3.00
Hf Foods Group	1	0	2	0	2.33

Hf Foods Group has a consensus target price of $5.50, indicating a potential upside of 195.70%. Given Hf Foods Group’s higher possible upside, analysts plainly believe Hf Foods Group is more favorable than Ingles Markets.

Profitability

This table compares Ingles Markets and Hf Foods Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ingles Markets	1.92%	6.30%	4.01%
Hf Foods Group	-2.77%	7.24%	2.77%

Risk and Volatility

Ingles Markets has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500. Comparatively, Hf Foods Group has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500.

Earnings & Valuation

This table compares Ingles Markets and Hf Foods Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ingles Markets	$5.33 billion	0.30	$83.59 million	$5.47	15.48
Hf Foods Group	$1.23 billion	0.08	-$38.84 million	($0.65)	-2.86

Ingles Markets has higher revenue and earnings than Hf Foods Group. Hf Foods Group is trading at a lower price-to-earnings ratio than Ingles Markets, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

62.5% of Ingles Markets shares are held by institutional investors. Comparatively, 24.0% of Hf Foods Group shares are held by institutional investors. 22.8% of Ingles Markets shares are held by company insiders. Comparatively, 2.1% of Hf Foods Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Ingles Markets beats Hf Foods Group on 11 of the 14 factors compared between the two stocks.

About Ingles Markets

Ingles Markets, Incorporated, together with its subsidiaries, operates a chain of supermarkets in the southeast United States. It offers food products, including grocery, meat and dairy products, produce, frozen foods, and other perishables; and non-food products, which include fuel centers, pharmacies, health and beauty care products, and general merchandise, as well as private label items. The company owns and operates a milk processing and packaging plant that supplies organic milk, fruit juices, and bottled water products to other retailers, food service distributors, and grocery warehouses. In addition, it provides home meal replacement items, delicatessens, bakeries, floral departments, and greeting cards, as well as broad selections of local organic, beverage, and health-related items. The company operates under the Ingles and Sav-Mor brand names. Ingles Markets, Incorporated was founded in 1963 and is headquartered in Asheville, North Carolina.

About Hf Foods Group

HF Foods Group Inc., through its subsidiaries, markets and distributes Asian specialty food, seafood, fresh produce, frozen and dry food, and non-food products to Asian and Chinese restaurants, and other foodservice customers in the United States. The company offers seafood, including lobsters, shrimp, crabs, scallops, and fish; Asian specialty food items, including noodles, rice, dried mushrooms and beans, sauces and seasonings, and spring rolls, as well as canned products, such as preserved vegetables, bamboo shoots, and water chestnuts; and meat and poultry products, including beef, pork, chicken, and duck. It also provides fresh produce products, such as vegetables and fruits; commodities comprising oil, flour, sugar, and salt; and packaging and other items including take-out accessories. HF Foods Group Inc. is headquartered in Las Vegas, Nevada.