Comparing Village Farms International (NASDAQ:VFF) and ARKO (NASDAQ:ARKO)

Village Farms International (NASDAQ:VFF) and ARKO (NASDAQ:ARKO) are both small-cap consumer staples companies, but which is the better business? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, analyst recommendations, valuation and institutional ownership.

Profitability

This table compares Village Farms International and ARKO’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Village Farms International	3.42%	-2.24%	-1.50%
ARKO	0.18%	5.50%	0.41%

Analyst Recommendations

This is a summary of recent recommendations for Village Farms International and ARKO, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Village Farms International	0	2	2	0	2.50
ARKO	1	3	1	1	2.33

ARKO has a consensus price target of $7.13, indicating a potential upside of 61.56%. Given ARKO’s higher possible upside, analysts plainly believe ARKO is more favorable than Village Farms International.

Volatility and Risk

Village Farms International has a beta of 2.24, meaning that its share price is 124% more volatile than the S&P 500. Comparatively, ARKO has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500.

Valuation & Earnings

This table compares Village Farms International and ARKO”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Village Farms International	$340.18 million	1.05	-$35.85 million	$0.09	35.22
ARKO	$8.10 billion	0.06	$20.84 million	$0.08	55.13

ARKO has higher revenue and earnings than Village Farms International. Village Farms International is trading at a lower price-to-earnings ratio than ARKO, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

12.1% of Village Farms International shares are owned by institutional investors. Comparatively, 78.3% of ARKO shares are owned by institutional investors. 12.6% of Village Farms International shares are owned by company insiders. Comparatively, 22.5% of ARKO shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

ARKO beats Village Farms International on 9 of the 15 factors compared between the two stocks.

About Village Farms International

Village Farms International, Inc., together with its subsidiaries, produces, markets, and sells greenhouse-grown tomatoes, bell peppers, and cucumbers in North America. It operates through four segments: Produce, Cannabis-Canada, Cannabis-U.S., and Energy. The company also produces and supplies cannabis products to other licensed providers and provincial governments in Canada and internationally; develops and sells cannabinoid-based health and wellness products, including ingestible, edibles, and topical applications; and produces power. It markets and distributes its products under the Village Farms brand name to retail supermarkets and fresh food distribution companies, as well as products produced under exclusive and non-exclusive arrangements from greenhouse supply partners. The company was formerly known as Village Farms Canada Inc. and changed its name to Village Farms International, Inc. in December 2009. Village Farms International, Inc. was founded in 1989 and is headquartered in Delta, Canada.

About ARKO

Arko Corp. operates convenience stores in the United States. It operates through Retail, Wholesale, Fleet Fueling, and GPMP segments. The Retail segment engages in the sale of fuel and merchandise to retail consumers. Its Wholesale segment supplies fuel to third-party dealers and consignment agents. The Fleet Fueling segment supplies fuel to proprietary and third-party cardlock, and issuance of proprietary fuel cards. Its GPMP segment supplies fuel to retail and wholesale segments. The company is based in Richmond, Virginia.