Financial Review: Cresud S.A.C.I.F. y A. (NASDAQ:CRESY) & Coffee (NASDAQ:JVA)

Cresud S.A.C.I.F. y A. (NASDAQ:CRESY) and Coffee (NASDAQ:JVA) are both small-cap consumer staples companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, earnings, risk, dividends and valuation.

Insider and Institutional Ownership

12.9% of Cresud S.A.C.I.F. y A. shares are owned by institutional investors. 36.2% of Cresud S.A.C.I.F. y A. shares are owned by company insiders. Comparatively, 21.9% of Coffee shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Cresud S.A.C.I.F. y A. and Coffee”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cresud S.A.C.I.F. y A.	$1,379.36 billion	0.00	$125.38 million	$1.79	6.50
Coffee	$96.28 million	0.23	$1.40 million	$0.84	4.71

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cresud S.A.C.I.F. y A.	12.93%	6.18%	2.63%
Coffee	4.85%	16.20%	11.61%

Volatility & Risk

Cresud S.A.C.I.F. y A. has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500. Comparatively, Coffee has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Cresud S.A.C.I.F. y A. and Coffee, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cresud S.A.C.I.F. y A.	0	1	0	0	2.00
Coffee	0	2	0	0	2.00

Coffee has a consensus target price of $9.50, indicating a potential upside of 139.90%. Given Coffee’s higher probable upside, analysts clearly believe Coffee is more favorable than Cresud S.A.C.I.F. y A..

Dividends

Cresud S.A.C.I.F. y A. pays an annual dividend of $0.60 per share and has a dividend yield of 5.2%. Coffee pays an annual dividend of $0.08 per share and has a dividend yield of 2.0%. Cresud S.A.C.I.F. y A. pays out 33.5% of its earnings in the form of a dividend. Coffee pays out 9.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Summary

Cresud S.A.C.I.F. y A. beats Coffee on 8 of the 14 factors compared between the two stocks.

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

Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria, an agricultural company, engages in the production of agricultural commodities in Brazil and other Latin American countries. The company operates through Agricultural Business, and Business Urban Properties and Investments segments. It is also involved in the management, development, and ownership of shopping malls, office buildings, and hotels; sale of grain derivatives, such as flour and oil; production and sale of crops, such as soybean, sugarcane, wheat, corn, oilseed, and sunflower, as well as sorghum and peanuts; and breeding, purchasing, and/or fattening of cattle for sale to slaughterhouses and supermarkets. In addition, it leases its farms to third parties for agriculture, cattle breeding, and seed production; and offers agricultural services. The company was incorporated in 1936 and is headquartered in Buenos Aires, Argentina.

About Coffee

Coffee Holding Co., Inc. engages in manufacturing, roasting, packaging, marketing, and distributing roasted and blended coffees in the United States, Australia, Canada, England, and China. It offers wholesale green coffee products, including unroasted raw beans that are sold to large, medium, and small roasters, as well as coffee shop operators; and roasts, blends, packages, and sells coffee under private labels in cans, brick packages, and instants of various sizes. The company also roasts and blends company label branded coffee to supermarkets, wholesalers, and individually owned stores; and sells tabletop coffee roasting equipment, instant coffees, and tea products for its customers. Its coffee brands include Cafe Caribe, Don Manuel, S&W, Cafe Supremo, Via Roma, Premier Roasters, and Harmony Bay. The company was formerly known as Transpacific International Group Corp and changed its name to Coffee Holding Co., Inc. in April 1998. Coffee Holding Co., Inc. was founded in 1971 and is headquartered in Staten Island, New York.