Comparing Emerald (NYSE:EEX) and Where Food Comes From (NASDAQ:WFCF)

Emerald (NYSE:EEX) and Where Food Comes From (NASDAQ:WFCF) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, analyst recommendations and institutional ownership.

Insider and Institutional Ownership

14.9% of Emerald shares are owned by institutional investors. Comparatively, 18.8% of Where Food Comes From shares are owned by institutional investors. 4.0% of Emerald shares are owned by insiders. Comparatively, 50.3% of Where Food Comes From shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Emerald and Where Food Comes From”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Emerald	$398.80 million	2.40	$2.20 million	$0.05	96.74
Where Food Comes From	$25.75 million	2.55	$2.12 million	$0.39	32.63

Emerald has higher revenue and earnings than Where Food Comes From. Where Food Comes From is trading at a lower price-to-earnings ratio than Emerald, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Emerald and Where Food Comes From, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Emerald	0	0	2	0	3.00
Where Food Comes From	0	0	0	0	0.00

Emerald currently has a consensus price target of $7.95, suggesting a potential upside of 64.36%. Given Emerald’s stronger consensus rating and higher probable upside, equities analysts plainly believe Emerald is more favorable than Where Food Comes From.

Profitability

This table compares Emerald and Where Food Comes From’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Emerald	1.83%	2.03%	0.70%
Where Food Comes From	7.99%	18.22%	11.07%

Volatility and Risk

Emerald has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500. Comparatively, Where Food Comes From has a beta of 0.62, suggesting that its share price is 38% less volatile than the S&P 500.

About Emerald

Emerald Holding, Inc. operates business-to-business (B2B) trade shows in the United States. The company provides B2B trade show franchises; and B2B print publications and digital media products, which provide industry specific business news and information across various sectors. It also offers B2B e-commerce and digital merchandising solutions to manufacturers and retailers through Elastic Suite and Bulletin platforms. The company serves retail, design, technology, equipment, and safety and security. Emerald Holding, Inc. was incorporated in 2013 and is headquartered in New York, New York.

About Where Food Comes From

Where Food Comes From, Inc., together with its subsidiaries, operates as a third-party food verification company in North America. The company operates through Verification and Certification, and Professional Services segments. It conducts on-site and desk audits to verify that claims being made about livestock, food, other specialty crops, and agricultural and aquaculture products are accurate, as well as offers Where Food Comes From Source Verified retail and restaurant labeling program, which connects consumers directly to the source of the food they purchase through product labeling, and web-based information sharing and education. It also offers professional services and technology solutions; verification solutions; and consulting services, as well as sells hardware. The company serves beef and pork packers, organic producers and processors, and specialty retail chains. The company was formerly known as Integrated Management Information, Inc. and changed its name to Where Food Comes From, Inc. in December 2012. Where Food Comes From, Inc. was founded in 1996 and is based in Castle Rock, Colorado.