Campbell’s (NASDAQ:CPB) & Coffee (NASDAQ:JVA) Head-To-Head Analysis

Coffee (NASDAQ:JVA) and Campbell’s (NASDAQ:CPB) are both consumer staples companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, valuation, institutional ownership and earnings.

Valuation & Earnings

This table compares Coffee and Campbell’s”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Coffee	$96.28 million	0.24	$1.40 million	$0.84	4.76
Campbell’s	$9.74 billion	0.59	$403.00 million	$1.31	14.73

Campbell’s has higher revenue and earnings than Coffee. Coffee is trading at a lower price-to-earnings ratio than Campbell’s, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Coffee and Campbell’s’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Coffee	4.85%	16.20%	11.61%
Campbell’s	4.04%	16.44%	4.25%

Volatility and Risk

Coffee has a beta of 1.41, meaning that its share price is 41% more volatile than the S&P 500. Comparatively, Campbell’s has a beta of 0.06, meaning that its share price is 94% less volatile than the S&P 500.

Insider and Institutional Ownership

52.3% of Campbell’s shares are held by institutional investors. 21.9% of Coffee shares are held by insiders. Comparatively, 19.8% of Campbell’s shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Coffee pays an annual dividend of $0.08 per share and has a dividend yield of 2.0%. Campbell’s pays an annual dividend of $1.00 per share and has a dividend yield of 5.2%. Coffee pays out 9.5% of its earnings in the form of a dividend. Campbell’s pays out 76.3% 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 Recommendations

This is a summary of recent recommendations and price targets for Coffee and Campbell’s, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Coffee	0	2	0	0	2.00
Campbell’s	7	13	0	0	1.65

Coffee presently has a consensus target price of $9.50, indicating a potential upside of 137.50%. Campbell’s has a consensus target price of $19.88, indicating a potential upside of 2.98%. Given Coffee’s stronger consensus rating and higher probable upside, analysts clearly believe Coffee is more favorable than Campbell’s.

Summary

Campbell’s beats Coffee on 8 of the 15 factors compared between the two stocks.

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.

About Campbell’s

The Campbell’s Company, formerly known as Campbell Soup Company, together with its subsidiaries, manufactures and markets food and beverage products in the United States and internationally. The company operates through Meals & Beverages and Snacks segments. The Meals & Beverages segment engages in the retail and foodservice businesses in the United States and Canada. This segment provides Campbell’s condensed and ready-to-serve soups; Swanson broth and stocks; Pacific Foods broth, soups, and non-dairy beverages; Prego pasta sauces; Pace Mexican sauces; Campbell’s gravies, pasta, beans, and dinner sauces; Swanson canned poultry; V8 juices and beverages; Campbell’s tomato juice; and snacking products in foodservice in Canada. The Snacks segment retails Pepperidge Farm cookies, crackers, fresh bakery, and frozen products, which include Goldfish crackers, Snyder’s of Hanover pretzels, Lance sandwich crackers, Cape Cod and Kettle Brand potato chips, Late July snacks, Snack Factory pretzel crisps, Pop Secret popcorn, and other snacking products. This segment is also involved in the retail business in Latin America. It sells its products through retail food chains, mass discounters and merchandisers, club stores, convenience stores, drug stores, and dollar stores, as well as e-commerce and other retail, commercial, and non-commercial establishments, and independent contractor distributors. The company was founded in 1869 and is headquartered in Camden, New Jersey.