Coffee (NASDAQ:JVA) and Barfresh Food Group (NASDAQ:BRFH) Critical Review

Coffee (NASDAQ:JVA) and Barfresh Food Group (NASDAQ:BRFH) are both small-cap consumer staples companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, dividends, analyst recommendations, earnings and profitability.

Earnings & Valuation

This table compares Coffee and Barfresh Food Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Coffee	$78.56 million	0.31	$2.22 million	$0.32	13.19
Barfresh Food Group	$10.72 million	5.03	-$2.83 million	($0.20)	-16.90

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

Profitability

This table compares Coffee and Barfresh Food Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Coffee	2.06%	6.84%	4.67%
Barfresh Food Group	-27.38%	-176.38%	-74.25%

Volatility & Risk

Coffee has a beta of 1.42, suggesting that its stock price is 42% more volatile than the S&P 500. Comparatively, Barfresh Food Group has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Coffee and Barfresh Food Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Coffee	0	1	0	0	2.00
Barfresh Food Group	1	0	1	0	2.00

Barfresh Food Group has a consensus target price of $6.00, indicating a potential upside of 77.51%. Given Barfresh Food Group’s higher possible upside, analysts plainly believe Barfresh Food Group is more favorable than Coffee.

Institutional & Insider Ownership

22.7% of Barfresh Food Group shares are held by institutional investors. 21.6% of Coffee shares are held by insiders. Comparatively, 34.2% of Barfresh Food Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Coffee beats Barfresh Food Group on 8 of the 13 factors compared between the two stocks.

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.

About Barfresh Food Group

Barfresh Food Group, Inc., together with its subsidiaries, manufactures and distributes ready-to-drink and ready-to-blend frozen beverages in the United States. It offers smoothies, shakes and frappes in various formats comprising ready-to-drink smoothie, easy pour, juice concentrates, and single serve. The company was founded in 2009 and is based in Los Angeles, California.