Contrasting CIMG (NASDAQ:IMG) and Freshpet (NASDAQ:FRPT)

Freshpet (NASDAQ:FRPT) and CIMG (NASDAQ:IMG) are both consumer staples companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, profitability, analyst recommendations, earnings, dividends and risk.

Volatility and Risk

Freshpet has a beta of 1.78, indicating that its share price is 78% more volatile than the S&P 500. Comparatively, CIMG has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500.

Insider and Institutional Ownership

23.4% of CIMG shares are owned by institutional investors. 4.3% of Freshpet shares are owned by company insiders. Comparatively, 0.1% of CIMG shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for Freshpet and CIMG, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Freshpet	1	8	10	0	2.47
CIMG	1	0	0	0	1.00

Freshpet presently has a consensus target price of $75.31, indicating a potential upside of 24.98%. Given Freshpet’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Freshpet is more favorable than CIMG.

Valuation and Earnings

This table compares Freshpet and CIMG”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Freshpet	$1.10 billion	2.69	$139.14 million	$3.80	15.86
CIMG	$10.30 million	0.21	-$4.88 million	($4.00)	-0.06

Freshpet has higher revenue and earnings than CIMG. CIMG is trading at a lower price-to-earnings ratio than Freshpet, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Freshpet and CIMG’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Freshpet	17.28%	5.97%	4.07%
CIMG	N/A	-23.59%	-15.90%

Summary

Freshpet beats CIMG on 13 of the 14 factors compared between the two stocks.

About Freshpet

Freshpet, Inc., together with its subsidiaries, manufactures, distributes, and markets natural fresh meals and treats for dogs and cats in the United States, Canada, and Europe. It sells dog food, cat food, and dog treats under the Freshpet brand name; and Dognation and Dog Joy labels through various classes of retail, including grocery, mass, club, pet specialty, and natural, as well as online. The company was incorporated in 2004 and is headquartered in Secaucus, New Jersey.

About CIMG

CIMG Inc. is a digital marketing, sales and distribution company for various consumer products with focuses on food and beverages. CIMG Inc., formerly known as NUZEE INC., is based in BEIJING.