Critical Analysis: Cresud S.A.C.I.F. y A. (NASDAQ:CRESY) and Mama’s Creations (NASDAQ:MAMA)

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

Analyst Ratings

This is a summary of current ratings and target prices for Mama’s Creations 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
Mama’s Creations	0	2	5	1	2.88
Cresud S.A.C.I.F. y A.	0	1	0	0	2.00

Mama’s Creations presently has a consensus price target of $20.00, indicating a potential upside of 52.36%. Given Mama’s Creations’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Mama’s Creations is more favorable than Cresud S.A.C.I.F. y A..

Valuation and Earnings

This table compares Mama’s Creations and Cresud S.A.C.I.F. y A.”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mama’s Creations	$171.71 million	3.60	$5.29 million	$0.17	77.22
Cresud S.A.C.I.F. y A.	$975.67 million	0.73	$125.38 million	$1.79	6.34

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

Risk and Volatility

Mama’s Creations has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500. Comparatively, Cresud S.A.C.I.F. y A. has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500.

Insider & Institutional Ownership

45.2% of Mama’s Creations shares are held by institutional investors. Comparatively, 12.9% of Cresud S.A.C.I.F. y A. shares are held by institutional investors. 1.0% of Mama’s Creations shares are held by insiders. Comparatively, 36.2% of Cresud S.A.C.I.F. y A. shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Mama’s Creations 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
Mama’s Creations	3.53%	10.05%	7.12%
Cresud S.A.C.I.F. y A.	12.93%	6.18%	2.63%

Summary

Mama’s Creations beats Cresud S.A.C.I.F. y A. on 9 of the 15 factors compared between the two stocks.

About Mama’s Creations

Mama’s Creations, Inc. engages in the marketing, manufacturing, and distribution of beef meatballs with sauce, turkey meatballs with sauce, beef meat loaf, sausage and peppers, chicken parmesan, and other similar meats and sauces. Its products include beef meatballs, turkey meatballs, stuffed meatballs, lasagna roll ups, retail ready meals, bulk deli, single-size pasta bowls, and packaged refrigerated products. Its brands include MamaMancini’s, Creative Salads, and The Olive Branch. The company was founded by Daniel Dougherty on July 22, 2009 and is headquartered in East Rutherford, NJ.

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.