Contrasting Village Farms International (NASDAQ:VFF) & Grocery Outlet (NASDAQ:GO)

Grocery Outlet (NASDAQ:GO) and Village Farms International (NASDAQ:VFF) are both small-cap consumer staples companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, valuation, analyst recommendations, earnings and risk.

Earnings and Valuation

This table compares Grocery Outlet and Village Farms International”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grocery Outlet	$4.37 billion	0.38	$39.47 million	$0.07	242.43
Village Farms International	$340.18 million	0.90	-$35.85 million	$0.09	30.11

Grocery Outlet has higher revenue and earnings than Village Farms International. Village Farms International is trading at a lower price-to-earnings ratio than Grocery Outlet, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

99.9% of Grocery Outlet shares are held by institutional investors. Comparatively, 12.1% of Village Farms International shares are held by institutional investors. 4.5% of Grocery Outlet shares are held by company insiders. Comparatively, 12.6% of Village Farms International shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and target prices for Grocery Outlet and Village Farms International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grocery Outlet	1	9	3	0	2.15
Village Farms International	0	0	2	1	3.33

Grocery Outlet presently has a consensus price target of $16.08, suggesting a potential downside of 5.26%. Given Grocery Outlet’s higher possible upside, research analysts clearly believe Grocery Outlet is more favorable than Village Farms International.

Profitability

This table compares Grocery Outlet and Village Farms International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grocery Outlet	0.18%	6.34%	2.35%
Village Farms International	3.42%	-2.24%	-1.50%

Risk and Volatility

Grocery Outlet has a beta of 0.32, meaning that its stock price is 68% less volatile than the S&P 500. Comparatively, Village Farms International has a beta of 2.31, meaning that its stock price is 131% more volatile than the S&P 500.

Summary

Grocery Outlet beats Village Farms International on 8 of the 15 factors compared between the two stocks.

About Grocery Outlet

Grocery Outlet Holding Corp. operates as a retailer of consumables and fresh products sold through independently operated stores in the United States. Its stores offer products in various categories, such as dairy and deli, produce, floral, fresh meat, seafood products, grocery, general merchandise, health and beauty care, frozen food, beer and wine, and ethnic products. The company was founded in 1946 and is headquartered in Emeryville, California.

About Village Farms International

Village Farms International, Inc., together with its subsidiaries, produces, markets, and sells greenhouse-grown tomatoes, bell peppers, and cucumbers in North America. It operates through four segments: Produce, Cannabis-Canada, Cannabis-U.S., and Energy. The company also produces and supplies cannabis products to other licensed providers and provincial governments in Canada and internationally; develops and sells cannabinoid-based health and wellness products, including ingestible, edibles, and topical applications; and produces power. It markets and distributes its products under the Village Farms brand name to retail supermarkets and fresh food distribution companies, as well as products produced under exclusive and non-exclusive arrangements from greenhouse supply partners. The company was formerly known as Village Farms Canada Inc. and changed its name to Village Farms International, Inc. in December 2009. Village Farms International, Inc. was founded in 1989 and is headquartered in Delta, Canada.