US Foods (NYSE:USFD – Get Free Report) and Freshpet (NASDAQ:FRPT – Get Free Report) are both consumer staples companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, risk, earnings, valuation and institutional ownership.
Valuation & Earnings
This table compares US Foods and Freshpet”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| US Foods | $39.42 billion | 0.50 | $676.00 million | $2.94 | 30.43 |
| Freshpet | $1.10 billion | 2.87 | $139.14 million | $2.57 | 25.11 |
Analyst Ratings
This is a summary of recent ratings for US Foods and Freshpet, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| US Foods | 0 | 2 | 10 | 1 | 2.92 |
| Freshpet | 1 | 8 | 9 | 0 | 2.44 |
US Foods currently has a consensus price target of $107.33, suggesting a potential upside of 19.98%. Freshpet has a consensus price target of $76.69, suggesting a potential upside of 18.82%. Given US Foods’ stronger consensus rating and higher possible upside, equities analysts clearly believe US Foods is more favorable than Freshpet.
Volatility and Risk
US Foods has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500. Comparatively, Freshpet has a beta of 1.66, meaning that its stock price is 66% more volatile than the S&P 500.
Profitability
This table compares US Foods and Freshpet’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| US Foods | 1.71% | 18.74% | 6.09% |
| Freshpet | 12.63% | 6.93% | 4.64% |
Insider and Institutional Ownership
98.8% of US Foods shares are owned by institutional investors. 0.6% of US Foods shares are owned by company insiders. Comparatively, 4.4% of Freshpet shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Summary
US Foods beats Freshpet on 11 of the 15 factors compared between the two stocks.
About US Foods
US Foods Holding Corp., together with its subsidiaries, engages in marketing, sale, and distribution of fresh, frozen, and dry food and non-food products to foodservice customers in the United States. The company's customers include independently owned single and multi-unit restaurants, regional concepts, national restaurant chains, hospitals, nursing homes, hotels and motels, country clubs, government and military organizations, colleges and universities, and retail locations. The company was formerly known as USF Holding Corp. and changed its name to US Foods Holding Corp. in February 2016. US Foods Holding Corp. was incorporated in 2007 and is headquartered in Rosemont, Illinois.
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.
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