Analyzing WANT WANT CHINA/ADR (WWNTY) and Medifast (MED)

WANT WANT CHINA/ADR (OTCMKTS:WWNTY) and Medifast (NYSE:MED) are both consumer staples companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, profitability, institutional ownership, dividends and valuation.

Risk and Volatility

WANT WANT CHINA/ADR has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500. Comparatively, Medifast has a beta of 0.54, meaning that its stock price is 46% less volatile than the S&P 500.

Insider & Institutional Ownership

88.1% of Medifast shares are held by institutional investors. 4.3% of Medifast shares are held 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.

Profitability

This table compares WANT WANT CHINA/ADR and Medifast’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
WANT WANT CHINA/ADR N/A N/A N/A
Medifast 10.95% 43.45% 30.19%

Dividends

WANT WANT CHINA/ADR pays an annual dividend of $2.06 per share and has a dividend yield of 5.3%. Medifast pays an annual dividend of $1.92 per share and has a dividend yield of 1.2%. Medifast pays out 83.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a summary of current ratings and recommmendations for WANT WANT CHINA/ADR and Medifast, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WANT WANT CHINA/ADR 0 0 0 0 N/A
Medifast 0 0 2 0 3.00

Medifast has a consensus price target of $249.00, indicating a potential upside of 55.73%. Given Medifast’s higher possible upside, analysts plainly believe Medifast is more favorable than WANT WANT CHINA/ADR.

Earnings & Valuation

This table compares WANT WANT CHINA/ADR and Medifast’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
WANT WANT CHINA/ADR $2.97 billion 3.25 $529.63 million N/A N/A
Medifast $301.56 million 6.34 $27.72 million $2.29 69.82

WANT WANT CHINA/ADR has higher revenue and earnings than Medifast.

Summary

Medifast beats WANT WANT CHINA/ADR on 8 of the 13 factors compared between the two stocks.

About WANT WANT CHINA/ADR

Want Want China Holdings Limited, an investment holding company, manufactures, distributes, and sells food and beverages. The company operates through four segments: Rice Crackers, Dairy Products and Beverages, Snack Foods, and Other Products. It offers sugar coated crackers, savoury crackers and fried crackers, and gift packs; flavoured milk, room temperature yogurt, yogurt drinks, ready-to-drink coffee, juice drinks, sports drinks, herbal tea, and milk powder; candies, popsicles, ball cakes and jellies, beans, nuts, and other snacks; and wine and other food products. The company is also involved in the trade of food and beverages, raw materials, machineries, etc.; sale of chemical materials and plastic films/bags; manufacture and sale of machineries and related services; manufacture of dehydrating, deoxidating, preservative, and related products; manufacture and sale of packaging materials, packing bags, carton boxes, and cans; provision of consultancy and information services; dairy farming and milk production activities; trading of food and beverages and related activities online; processing and sale of rice and oil products; and manufacture of rice flour. It serves customers through a sales and distribution network primarily in the People's Republic of China, Taiwan, Japan, Hong Kong, Singapore, the United States, and Canada; and countries in the Southeast Asia and Europe. Want Want China Holdings Limited was founded in 1962 and is headquartered in Tsim Sha Tsui, Hong Kong.

About Medifast

Medifast, Inc., through its subsidiaries, manufactures and distributes weight loss, weight management, healthy living products, and other consumable health and nutritional products. It offers bars, bites, pretzels, puffs, oatmeal and cereal crunch products, drinks, hearty choices, pancakes, puddings, soft serves, shakes, smoothies, soft bakes, and soups under the Medifast, OPTAVIA, Thrive by Medifast, Optimal Health by OPTAVIA, Flavors of Home, and Essential 1 brands. The company sells its products through various channels, including the Internet, call centers, independent health advisors, medical professionals, franchise weight loss clinics, and direct consumer marketing. As of December 31, 2017, it operated 16 franchised Medifast weight control centers in Arizona, California, Louisiana, Minnesota, and Wisconsin; and 18 reseller locations in California, Maryland, and Pennsylvania. The company was founded in 1980 and is headquartered in Baltimore, Maryland.

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