Financial Review: Westrock Coffee (WEST) and The Competition

Westrock Coffee (NASDAQ:WEST) is one of 33 public companies in the “Beverages” industry, but how does it contrast to its rivals? We will compare Westrock Coffee to related companies based on the strength of its earnings, risk, valuation, institutional ownership, dividends, profitability and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Westrock Coffee and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Westrock Coffee	0	0	1	0	3.00
Westrock Coffee Competitors	180	1252	1601	35	2.49

Westrock Coffee presently has a consensus target price of $14.00, indicating a potential upside of 39.72%. As a group, “Beverages” companies have a potential upside of 7.47%. Given Westrock Coffee’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Westrock Coffee is more favorable than its rivals.

Profitability

This table compares Westrock Coffee and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Westrock Coffee	-8.58%	-310.68%	-3.60%
Westrock Coffee Competitors	-55.99%	-853.84%	-19.94%

Insider & Institutional Ownership

46.4% of Westrock Coffee shares are owned by institutional investors. Comparatively, 39.4% of shares of all “Beverages” companies are owned by institutional investors. 42.1% of Westrock Coffee shares are owned by company insiders. Comparatively, 27.2% of shares of all “Beverages” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Westrock Coffee and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Westrock Coffee	$888.17 million	-$55.19 million	-7.53
Westrock Coffee Competitors	$11.42 billion	$1.66 billion	56.02

Westrock Coffee’s rivals have higher revenue and earnings than Westrock Coffee. Westrock Coffee is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

Westrock Coffee has a beta of 0.24, suggesting that its stock price is 76% less volatile than the S&P 500. Comparatively, Westrock Coffee’s rivals have a beta of 0.53, suggesting that their average stock price is 47% less volatile than the S&P 500.

Summary

Westrock Coffee beats its rivals on 8 of the 13 factors compared.

Westrock Coffee Company Profile

Westrock Coffee Company, LLC operates as an integrated coffee, tea, flavors, extracts, and ingredients solutions provider in the United States and internationally. It operates through two segments, Beverage Solutions and Sustainable Sourcing and Traceability. The company provides coffee sourcing, supply chain management, product development, roasting, packaging, and distribution services to the retail, food service and restaurant, convenience store and travel center, non-commercial account, CPG, and hospitality industries. The Beverage Solutions segment provides various packaging, including branded and private label coffee in bags, fractional packs, and single serve cups, as well as extract solutions. The Sustainable Sourcing and Traceability segment engages in delivery and settlement of forward sales contracts for green coffee. The company was founded in 2009 and is based in Little Rock, Arkansas.