Critical Survey: The Fresh Market (TFM) and Cresud S.A.C.I.F. y A. (CRESY)

The Fresh Market (NASDAQ: TFM) and Cresud S.A.C.I.F. y A. (NASDAQ:CRESY) are both non-cyclical consumer goods & services companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Profitability

This table compares The Fresh Market and Cresud S.A.C.I.F. y A.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The Fresh Market 4.40% 24.25% 14.96%
Cresud S.A.C.I.F. y A. 2.35% 7.25% 1.21%

Earnings and Valuation

This table compares The Fresh Market and Cresud S.A.C.I.F. y A.’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
The Fresh Market N/A N/A N/A $1.36 N/A
Cresud S.A.C.I.F. y A. $5.05 billion 0.21 $97.76 million ($2.10) -10.03

Cresud S.A.C.I.F. y A. has higher revenue and earnings than The Fresh Market. Cresud S.A.C.I.F. y A. is trading at a lower price-to-earnings ratio than The Fresh Market, indicating that it is currently the more affordable of the two stocks.

Dividends

Cresud S.A.C.I.F. y A. pays an annual dividend of $0.43 per share and has a dividend yield of 2.0%. The Fresh Market does not pay a dividend. Cresud S.A.C.I.F. y A. pays out -20.5% of its earnings in the form of a dividend.

Institutional & Insider Ownership

22.8% of Cresud S.A.C.I.F. y A. shares are held by institutional investors. 36.2% of Cresud S.A.C.I.F. y A. shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings for The Fresh Market and Cresud S.A.C.I.F. y A., as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The Fresh Market 0 0 0 0 N/A
Cresud S.A.C.I.F. y A. 0 0 0 0 N/A

About The Fresh Market

The Fresh Market, Inc. is a United States-based specialty grocery retailer. The Company focuses on perishable categories, which include meat, seafood, produce, deli, bakery, floral, sushi and prepared foods. Its non-perishable categories include traditional grocery, frozen and dairy products, as well as bulk, coffee and candy, and beer and wine. It is engaged in sale of items at its specialty food stores, which are located in over 30 states in the United States. It offers products, such as steaks, ground beef and whole roasts under meat department. The Company offers over 200 varieties of imported and domestic cheeses under deli department. It offers products in bulk format, such as nuts, dried fruits and snack mixes. Its floral offerings include roses, orchids and tulips. Its gift selection includes candles, and seasonal and holiday gift baskets. It offers everyday wines, wines from local vintners and its private-label wines. It offers beers from local, domestic and foreign brewers.

About Cresud S.A.C.I.F. y A.

Cresud Sociedad Anonima Comercial, Inmobiliaria, Financiera y Agropecuaria is an agricultural company engaged in the production of basic agricultural commodities with presence in the agricultural sector of Brazil, through its investment in Brasilagro, as well as in other Latin American countries. In addition, the Company leases lands to third parties and perform agency and agro-industrial services, including a meat packing plant. It operates in two businesses areas, namely, Agricultural and Investment and Development Properties. Its Agricultural business comprises eight segments: Crops, Cattle, Dairy, Sugarcane, Agricultural Rentals and Services, Land Transformation and Sales, Agro-industrial and Others. The Company’s Investment and Development Properties comprises six segments: Shopping Center Properties, Offices, Sales and Developments, Hotels, International, and Financial Operations and Others. The Company’s main crops include soybean, wheat, corn and sunflower.

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