Financial Analysis: Soupman (OTCMKTS:SOUPQ) & Advantage Solutions (NASDAQ:ADV)

Soupman (OTCMKTS:SOUPQ) and Advantage Solutions (NASDAQ:ADV) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, risk, profitability, institutional ownership, valuation, earnings and analyst recommendations.

Institutional and Insider Ownership

49.8% of Advantage Solutions shares are held by institutional investors. 12.1% of Soupman shares are held by insiders. Comparatively, 7.9% of Advantage Solutions shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for Soupman and Advantage Solutions, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Soupman	0	0	0	0	0.00
Advantage Solutions	0	0	1	0	3.00

Advantage Solutions has a consensus target price of $2.25, indicating a potential upside of 25.00%. Given Advantage Solutions’ stronger consensus rating and higher possible upside, analysts clearly believe Advantage Solutions is more favorable than Soupman.

Profitability

This table compares Soupman and Advantage Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Soupman	N/A	N/A	N/A
Advantage Solutions	-8.72%	-39.45%	-9.63%

Valuation and Earnings

This table compares Soupman and Advantage Solutions”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Soupman	N/A	N/A	N/A	N/A	N/A
Advantage Solutions	$3.57 billion	0.16	-$326.96 million	($0.94)	-1.91

Soupman has higher earnings, but lower revenue than Advantage Solutions.

Summary

Advantage Solutions beats Soupman on 5 of the 9 factors compared between the two stocks.

About Soupman

Soupman, Inc., together with its subsidiaries, manufactures and sells soups in the United States. It markets and sells its products to grocery chains, school systems, and franchisees under The Original Soupman brand name. The company also franchises Original Soupman restaurants and mobile unit; and other high-traffic locations, such as casinos, airports, theme parks, and other tourist locations. It has 9 franchise locations, including co-branded locations. The company was formerly known as Passport Arts, Inc. and changed its name to Soupman, Inc. in January 2011. Soupman, Inc. was founded in 1984 and is based in Staten Island, New York.

About Advantage Solutions

Advantage Solutions Inc. provides business solutions to consumer goods manufacturers and retailers in North America and internationally. It operates in two segments, Sales and Marketing. The Sales segment offers brand-centric services, such as headquarter relationship management; analytics, insights, and intelligence; and brand-centric merchandising services. This segment also provides retailer-centric services comprising retailer-centric merchandising and in-store media services. The Marketing segment offers brand-centric services, including shopper and consumer marketing, and brand experiential services; retailer-centric services, such as retail experiential and private label services; and digital marketing, and digital media and advertising services. The company was formerly known as Karman Holding Corp. and changed its name to Advantage Solutions Inc. in March 2016. The company was founded in 1987 and is headquartered in Irvine, California.