Vapor Group (OTCMKTS:VPOR) & Universal (NYSE:UVV) Critical Analysis

Vapor Group (OTCMKTS:VPOR) and Universal (NYSE:UVV) are both consumer defensive companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, valuation, institutional ownership, risk and dividends.

Profitability

This table compares Vapor Group and Universal’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vapor Group	N/A	N/A	N/A
Universal	3.51%	8.46%	4.10%

Earnings and Valuation

This table compares Vapor Group and Universal”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vapor Group	N/A	N/A	N/A	$0.00	N/A
Universal	$2.94 billion	0.47	$95.05 million	$4.11	13.49

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

Institutional & Insider Ownership

81.0% of Universal shares are held by institutional investors. 1.9% of Universal shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations and price targets for Vapor Group and Universal, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vapor Group	0	0	0	0	0.00
Universal	0	1	1	0	2.50

Given Vapor Group’s higher probable upside, analysts clearly believe Vapor Group is more favorable than Universal.

Summary

Universal beats Vapor Group on 10 of the 11 factors compared between the two stocks.

About Vapor Group

Vapor Group, Inc. develops, manufactures, and markets electronic cigarettes, vaporizers, and naturally flavored e-liquids in the United States. It markets its products under the Vapor Group, Total Vapor, Vapor 123, and The Vapor Products brand names. The company is headquartered in Miami, Florida. Vapor Group, Inc. is a subsidiary of SF Holdings LLC.

About Universal

Universal Corporation processes and supplies leaf tobacco and plant-based ingredients worldwide. The company operates through two segments, Tobacco Operations; and Ingredients Operations. It is involved in the procuring, financing, processing, packing, storing, and shipping leaf tobacco for sale to manufacturers of consumer tobacco products. The company contracts, purchases, processes, and sells flue-cured, burley, and oriental tobaccos that are primarily used in the manufacture of cigarettes; and dark air-cured tobaccos principally used in the manufacture of cigars, natural wrapped cigars and cigarillos, smokeless, and pipe tobacco products. It also provides value-added services, including blending, chemical, and physical testing of tobacco; service cutting for various manufacturers; manufacturing reconstituted leaf tobacco; just-in-time inventory management services; electronic nicotine delivery systems; and smoke testing services for customers. In addition, the company offers testing services for crop protection agents and tobacco constituents in seed, leaf, and finished products, including e-cigarette liquids and vapors; and analytical services that include chemical compound testing in finished tobacco products and mainstream smoke. Further, it provides a various value-added manufacturing processes to produce specialty vegetable and fruit-based ingredients, as well as botanical extracts and flavorings for human and pet food markets; and recycles waste materials from tobacco production. Universal Corporation was founded in 1886 and is headquartered in Richmond, Virginia.