Critical Contrast: Freshpet (NASDAQ:FRPT) and J. M. Smucker (NYSE:SJM)

Freshpet (NASDAQ:FRPTGet Free Report) and J. M. Smucker (NYSE:SJMGet Free Report) are both consumer staples companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, earnings, valuation, risk and dividends.

Earnings & Valuation

This table compares Freshpet and J. M. Smucker”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Freshpet $975.18 million 2.42 $46.92 million $0.67 72.24
J. M. Smucker $8.73 billion 1.24 -$1.23 billion ($13.71) -7.40

Freshpet has higher earnings, but lower revenue than J. M. Smucker. J. M. Smucker is trading at a lower price-to-earnings ratio than Freshpet, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Freshpet has a beta of 1.74, indicating that its share price is 74% more volatile than the S&P 500. Comparatively, J. M. Smucker has a beta of 0.25, indicating that its share price is 75% less volatile than the S&P 500.

Profitability

This table compares Freshpet and J. M. Smucker’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Freshpet 3.23% 4.82% 3.21%
J. M. Smucker -16.75% 15.41% 5.55%

Institutional and Insider Ownership

81.7% of J. M. Smucker shares are owned by institutional investors. 4.4% of Freshpet shares are owned by insiders. Comparatively, 2.2% of J. M. Smucker shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Freshpet and J. M. Smucker, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Freshpet 1 7 8 1 2.53
J. M. Smucker 1 7 8 1 2.53

Freshpet currently has a consensus target price of $103.33, indicating a potential upside of 113.50%. J. M. Smucker has a consensus target price of $118.00, indicating a potential upside of 16.26%. Given Freshpet’s higher probable upside, research analysts plainly believe Freshpet is more favorable than J. M. Smucker.

Summary

Freshpet beats J. M. Smucker on 8 of the 12 factors compared between the two stocks.

About Freshpet

(Get Free Report)

Freshpet, Inc., together with its subsidiaries, manufactures, distributes, and markets natural fresh meals and treats for dogs and cats in the United States, Canada, and Europe. It sells dog food, cat food, and dog treats under the Freshpet brand name; and Dognation and Dog Joy labels through various classes of retail, including grocery, mass, club, pet specialty, and natural, as well as online. The company was incorporated in 2004 and is headquartered in Secaucus, New Jersey.

About J. M. Smucker

(Get Free Report)

The J. M. Smucker Company manufactures and markets branded food and beverage products worldwide. It operates in three segments: U.S. Retail Pet Foods, U.S. Retail Coffee, and U.S. Retail Consumer Foods. The company offers mainstream roast, ground, single serve, and premium coffee; peanut butter and specialty spreads; fruit spreads, toppings, and syrups; jelly products; nut mix products; shortening and oils; frozen sandwiches and snacks; pet food and pet snacks; and foodservice hot beverage, foodservice portion control, and flour products, as well as dog and cat food, frozen handheld products, juices and beverages, and baking mixes and ingredients. It provides its products under the Meow Mix, Milk-Bone, Pup-Peroni, Canine Carry Outs, Folgers, Café Bustelo, Dunkin', Folgers, Café Bustelo, 1850, Jif, Smucker's, Smucker's Uncrustables, Robin Hood, and Five Roses. The company sells its products through direct sales and brokers to food retailers, club stores, discount and dollar stores, online retailers, pet specialty stores, natural foods stores and distributors, drug stores, military commissaries, and mass merchandisers. Smucker Company was founded in 1897 and is headquartered in Orrville, Ohio.

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