Vital Farms (NASDAQ:VITL – Get Free Report) and Bridgford Foods (NASDAQ:BRID – Get Free Report) 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 earnings, profitability, dividends, valuation, analyst recommendations, institutional ownership and risk.
Institutional and Insider Ownership
98.6% of Vital Farms shares are held by institutional investors. Comparatively, 4.7% of Bridgford Foods shares are held by institutional investors. 3.9% of Vital Farms shares are held by insiders. Comparatively, 80.7% of Bridgford Foods shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares Vital Farms and Bridgford Foods’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Vital Farms | 0.02% | 3.46% | 2.25% |
| Bridgford Foods | -6.36% | -12.97% | -10.05% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Vital Farms | 1 | 8 | 5 | 0 | 2.29 |
| Bridgford Foods | 1 | 0 | 0 | 0 | 1.00 |
Vital Farms presently has a consensus price target of $17.18, suggesting a potential upside of 84.16%. Given Vital Farms’ stronger consensus rating and higher possible upside, research analysts clearly believe Vital Farms is more favorable than Bridgford Foods.
Risk and Volatility
Vital Farms has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500. Comparatively, Bridgford Foods has a beta of -0.17, meaning that its share price is 117% less volatile than the S&P 500.
Valuation and Earnings
This table compares Vital Farms and Bridgford Foods”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Vital Farms | $759.44 million | 0.53 | $66.28 million | ($0.04) | -233.25 |
| Bridgford Foods | $230.99 million | 0.22 | -$13.36 million | ($1.59) | -3.47 |
Vital Farms has higher revenue and earnings than Bridgford Foods. Vital Farms is trading at a lower price-to-earnings ratio than Bridgford Foods, indicating that it is currently the more affordable of the two stocks.
Summary
Vital Farms beats Bridgford Foods on 12 of the 14 factors compared between the two stocks.
About Vital Farms
Vital Farms, Inc., a food company, provides pasture-raised products in the United States. It offers shell eggs, butter, hard-boiled eggs, and liquid whole eggs. The company was founded in 2007 and is headquartered in Austin, Texas.
About Bridgford Foods
Bridgford Foods Corporation, together with its subsidiaries, manufactures, markets, and distributes frozen and snack food products in the United States. It operates in two segments, Frozen Food Products and Snack Food Products. The company offers biscuits, bread dough items, roll dough items, and dry sausage and beef jerky products, as well as ready to eat sandwiches and non-refrigerated snack food products. It provides frozen food products to food service and retail customers through wholesalers, cooperatives, and distributors; and snack food items to supermarkets, mass merchandise, and convenience retail stores through customer-owned distribution centers, as well as a direct store delivery network. The company was founded in 1932 and is headquartered in Dallas, Texas. Bridgford Foods Corporation operates as a subsidiary of Bridgford Industries Incorporated.
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