Head-To-Head Review: BAB (OTCMKTS:BABB) and Nocera (NASDAQ:NCRA)

BAB (OTCMKTS:BABB) and Nocera (NASDAQ:NCRA) are both small-cap consumer staples companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, earnings, analyst recommendations and profitability.

Profitability

This table compares BAB and Nocera’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BAB	17.00%	16.79%	11.62%
Nocera	-24.59%	-81.74%	-69.13%

Insider and Institutional Ownership

1.3% of Nocera shares are held by institutional investors. 33.7% of BAB shares are held by company insiders. Comparatively, 5.2% of Nocera shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares BAB and Nocera”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BAB	$3.55 million	1.99	$520,000.00	$0.07	13.88
Nocera	$17.01 million	0.74	-$2.35 million	($0.24)	-3.64

BAB has higher earnings, but lower revenue than Nocera. Nocera is trading at a lower price-to-earnings ratio than BAB, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

BAB has a beta of 0.21, indicating that its share price is 79% less volatile than the S&P 500. Comparatively, Nocera has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for BAB and Nocera, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BAB	0	0	0	0	0.00
Nocera	1	0	0	0	1.00

Summary

BAB beats Nocera on 8 of the 12 factors compared between the two stocks.

About BAB

BAB, Inc. franchises and licenses bagel and muffin retail units under the Big Apple Bagels (BAB), My Favorite Muffin (MFM), and SweetDuet (SD) trade names in the United States. It's BAB franchised brand includes daily baked bagels, flavored cream cheeses, premium coffees, gourmet bagel sandwiches, and other related products; and MFM brand comprises various freshly baked muffins and coffees, as well as units operating as My Favorite Muffin Your All Day Bakery Café features specialty bagel sandwiches and related products. The company's SD brand includes frozen yogurt products. BAB, Inc. was founded in 1993 and is based in Deerfield, Illinois.

About Nocera

Nocera, Inc., together with its subsidiaries, designs, develops, and produces recirculating aquaculture systems for fish farms in Taiwan. The company also offers consulting, technology transfer, and aquaculture project management services to new and existing aquaculture management business services. In addition, the company sells signature seafood porridge bowl through its flagship bento box store. The company was founded in 2014 and is headquartered in New Taipei City, Taiwan.