Contrasting Vita Coco (NASDAQ:COCO) and Coffee (NASDAQ:JVA)

Vita Coco (NASDAQ:COCO) and Coffee (NASDAQ:JVA) are both consumer staples companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, institutional ownership, earnings and dividends.

Analyst Recommendations

This is a summary of current ratings and target prices for Vita Coco and Coffee, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vita Coco	0	3	5	0	2.63
Coffee	0	0	0	0	0.00

Vita Coco presently has a consensus price target of $38.38, suggesting a potential downside of 6.83%. Given Vita Coco’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Vita Coco is more favorable than Coffee.

Valuation & Earnings

This table compares Vita Coco and Coffee”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vita Coco	$516.01 million	4.54	$55.95 million	$1.07	38.50
Coffee	$89.75 million	0.31	$2.22 million	$0.32	15.34

Vita Coco has higher revenue and earnings than Coffee. Coffee is trading at a lower price-to-earnings ratio than Vita Coco, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Vita Coco and Coffee’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vita Coco	11.50%	24.99%	17.84%
Coffee	2.06%	6.84%	4.67%

Volatility and Risk

Vita Coco has a beta of 0.36, suggesting that its stock price is 64% less volatile than the S&P 500. Comparatively, Coffee has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500.

Institutional and Insider Ownership

88.5% of Vita Coco shares are held by institutional investors. 34.2% of Vita Coco shares are held by insiders. Comparatively, 21.6% of Coffee 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.

Summary

Vita Coco beats Coffee on 13 of the 14 factors compared between the two stocks.

About Vita Coco

The Vita Coco Company, Inc. develops, markets, and distributes coconut water products under the Vita Coco brand name in the United States, Canada, Europe, the Middle East, Africa, and the Asia Pacific. The company offers coconut oil and coconut milk; juice; Runa, a plant-based energy drink; packaged water under the Ever & Ever brand name; and PWR LIFT, a protein-infused fitness drink. It also provides private label coconut water and oil to retailers. It distributes its products through club, food, drug, mass, convenience, e-commerce, and foodservice channels. The company was formerly known as All Market Inc. and changed its name to The Vita Coco Company, Inc. in September 2021.The Vita Coco Company, Inc. was incorporated in 2004 and is headquartered in New York, New York.

About Coffee

Coffee Holding Co., Inc. engages in manufacturing, roasting, packaging, marketing, and distributing roasted and blended coffees in the United States, Australia, Canada, England, and China. It offers wholesale green coffee products, including unroasted raw beans that are sold to large, medium, and small roasters, as well as coffee shop operators; and roasts, blends, packages, and sells coffee under private labels in cans, brick packages, and instants of various sizes. The company also roasts and blends company label branded coffee to supermarkets, wholesalers, and individually owned stores; and sells tabletop coffee roasting equipment, instant coffees, and tea products for its customers. Its coffee brands include Cafe Caribe, Don Manuel, S&W, Cafe Supremo, Via Roma, Premier Roasters, and Harmony Bay. The company was formerly known as Transpacific International Group Corp and changed its name to Coffee Holding Co., Inc. in April 1998. Coffee Holding Co., Inc. was founded in 1971 and is headquartered in Staten Island, New York.