Financial Survey: Cal-Maine Foods (NASDAQ:CALM) versus Lifeway Foods (NASDAQ:LWAY)

Lifeway Foods (NASDAQ:LWAY) and Cal-Maine Foods (NASDAQ:CALM) are both consumer staples companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, risk and dividends.

Profitability

This table compares Lifeway Foods and Cal-Maine Foods’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lifeway Foods	4.48%	12.66%	9.29%
Cal-Maine Foods	2.32%	2.21%	1.89%

Volatility and Risk

Lifeway Foods has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500. Comparatively, Cal-Maine Foods has a beta of 0.25, meaning that its share price is 75% less volatile than the S&P 500.

Valuation and Earnings

This table compares Lifeway Foods and Cal-Maine Foods”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lifeway Foods	$242.41 million	1.38	$13.86 million	$0.70	31.66
Cal-Maine Foods	$2.91 billion	1.03	$316.68 million	$1.17	55.00

Cal-Maine Foods has higher revenue and earnings than Lifeway Foods. Lifeway Foods is trading at a lower price-to-earnings ratio than Cal-Maine Foods, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

36.4% of Lifeway Foods shares are held by institutional investors. Comparatively, 84.7% of Cal-Maine Foods shares are held by institutional investors. 18.6% of Lifeway Foods shares are held by insiders. Comparatively, 3.6% of Cal-Maine Foods shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Lifeway Foods and Cal-Maine Foods, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lifeway Foods	0	1	2	1	3.00
Cal-Maine Foods	0	5	1	0	2.17

Lifeway Foods presently has a consensus target price of $34.00, indicating a potential upside of 53.43%. Cal-Maine Foods has a consensus target price of $84.17, indicating a potential upside of 30.80%. Given Lifeway Foods’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Lifeway Foods is more favorable than Cal-Maine Foods.

Summary

Lifeway Foods beats Cal-Maine Foods on 10 of the 15 factors compared between the two stocks.

About Lifeway Foods

Lifeway Foods, Inc. produces and markets probiotic-based products in the United States and internationally. Its primary product is drinkable kefir, a cultured dairy product in various organic and non-organic sizes, flavors, and types. The company offers European-style soft cheeses; cream and other products; ProBugs, a line of kefir products designed for children; drinkable yogurt; and fresh made butter and sour cream. It sells its products under the Lifeway, GlenOaks Farms, and Fresh Made brand names, as well as under private labels on behalf of customers primarily through direct sales force, brokers, and distributors. Lifeway Foods, Inc. was incorporated in 1986 and is based in Morton Grove, Illinois.

About Cal-Maine Foods

Cal-Maine Foods, Inc., together with its subsidiaries, produces, grades, packages, markets, and distributes shell eggs. The company offers specialty shell eggs, such as nutritionally enhanced, cage free, organic, free-range, pasture-raised, and brown eggs under the Egg-Land's Best, Land O' Lakes, Farmhouse Eggs, Sunups, Sunny Meadow, and 4Grain brand names. It sells its products to various customers, including national and regional grocery store chains, club stores, independent supermarkets, foodservice distributors, and egg product consumers primarily in the southwestern, southeastern, mid-western, and mid-Atlantic regions of the United States. Cal-Maine Foods, Inc. was founded in 1957 and is headquartered in Ridgeland, Mississippi.