Analyzing Cuisine Solutions (OTCMKTS:CUSI) & SunOpta (NASDAQ:STKL)

SunOpta (NASDAQ:STKL) and Cuisine Solutions (OTCMKTS:CUSI) are both consumer staples companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, dividends, risk, valuation, profitability, analyst recommendations and institutional ownership.

Volatility and Risk

SunOpta has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500. Comparatively, Cuisine Solutions has a beta of -0.21, suggesting that its stock price is 121% less volatile than the S&P 500.

Profitability

This table compares SunOpta and Cuisine Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SunOpta	-0.66%	12.82%	2.90%
Cuisine Solutions	N/A	N/A	N/A

Earnings and Valuation

This table compares SunOpta and Cuisine Solutions”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SunOpta	$723.73 million	0.98	-$17.39 million	($0.06)	-98.00
Cuisine Solutions	N/A	N/A	N/A	N/A	N/A

Cuisine Solutions has lower revenue, but higher earnings than SunOpta.

Analyst Recommendations

This is a summary of current ratings and target prices for SunOpta and Cuisine Solutions, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SunOpta	0	0	2	0	3.00
Cuisine Solutions	0	0	0	0	0.00

SunOpta presently has a consensus target price of $9.50, indicating a potential upside of 61.56%. Given SunOpta’s stronger consensus rating and higher probable upside, research analysts clearly believe SunOpta is more favorable than Cuisine Solutions.

Insider and Institutional Ownership

85.4% of SunOpta shares are held by institutional investors. 1.9% of SunOpta shares are held by company insiders. Comparatively, 61.1% of Cuisine Solutions shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

SunOpta beats Cuisine Solutions on 8 of the 10 factors compared between the two stocks.

About SunOpta

SunOpta Inc. engages in manufacture and sale of plant-based and fruit-based food and beverage products in the United States, Canada, and internationally. The company provides plant-based beverages utilizing oat, almond, soy, coconut, rice, hemp, and other bases under the Dream and West Life brands; oat-based creamers under the SOWN brand; ready-to-drink protein shakes; and nut, grain, seed, and legume based beverages; packaged teas and concentrates; and meat and vegetable broths and stocks. It also offers plant-based ingredients, such as oatbase, oatgold, soybase, hempbase, and soypowders and okara; ready-to-eat fruit snacks made from apple purée and juice concentrate in bar, bit, twist, strip and sandwich formats; cold pressed fruit bars; liquid and powder ingredients utilizing oat, soy and hemp bases; ready-to-eat fruit smoothie and chia bowls topped with frozen fruit; consumer products, which includes protein shakes, teas, broths, and fruit snacks; and liquid and dry ingredients for internal use and for sale to other food and beverage manufacturers. It sells its products through various distribution channels including private label products to retail customers; branded products under co-manufacturing agreements to other branded food companies for their distribution; and its own branded products to retail and foodservice customers. The company was formerly known as Stake Technology Ltd. and changed its name to SunOpta Inc. in October 2003. SunOpta Inc. was incorporated in 1973 and is headquartered in Eden Prairie, Minnesota.

About Cuisine Solutions

Cuisine Solutions, Inc. produces and markets various food products in the United States. Its products include beef, lamb, pork and veal, pastas, poultry, sauces, seafood, and vegetarian meals. The company offers its products to foodservice, on board services, retail, military, and national restaurant chain industries. Cuisine Solutions, Inc. was founded in 1972 and is based in Sterling, Virginia.