Drinks Americas (OTCMKTS:DKAM) and Natural Grocers by Vitamin Cottage (NYSE:NGVC) Financial Contrast

Drinks Americas (OTCMKTS:DKAM) and Natural Grocers by Vitamin Cottage (NYSE:NGVC) are both retail/wholesale companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.

Risk & Volatility

Drinks Americas has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500. Comparatively, Natural Grocers by Vitamin Cottage has a beta of 1.57, meaning that its stock price is 57% more volatile than the S&P 500.

Institutional & Insider Ownership

32.0% of Natural Grocers by Vitamin Cottage shares are owned by institutional investors. 58.8% of Natural Grocers by Vitamin Cottage shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Drinks Americas and Natural Grocers by Vitamin Cottage’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Drinks Americas	N/A	N/A	N/A
Natural Grocers by Vitamin Cottage	3.31%	23.47%	6.63%

Earnings & Valuation

This table compares Drinks Americas and Natural Grocers by Vitamin Cottage”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Drinks Americas	N/A	N/A	N/A	N/A	N/A
Natural Grocers by Vitamin Cottage	$1.24 billion	0.58	$33.94 million	$1.88	16.78

Natural Grocers by Vitamin Cottage has higher revenue and earnings than Drinks Americas.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Drinks Americas and Natural Grocers by Vitamin Cottage, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Drinks Americas	0	0	0	0	0.00
Natural Grocers by Vitamin Cottage	0	1	1	0	2.50

Natural Grocers by Vitamin Cottage has a consensus price target of $54.00, suggesting a potential upside of 71.18%. Given Natural Grocers by Vitamin Cottage’s stronger consensus rating and higher probable upside, analysts clearly believe Natural Grocers by Vitamin Cottage is more favorable than Drinks Americas.

Summary

Natural Grocers by Vitamin Cottage beats Drinks Americas on 10 of the 10 factors compared between the two stocks.

About Drinks Americas

Drinks Americas Holdings, Ltd. produces, imports, distributes, and markets premium wine and spirits, and alcoholic beverages to beverage wholesalers in the United States and internationally. The company offers premium authentic Mexican beer products under the brand names of Day of the Dead Beer, Mexicali, Rio Bravo, Red Pig, and Chili Beer. The company also markets and distributes non-alcoholic beverages. It offers its products through various retailers and restaurant chains. Drinks Americas Holdings, Ltd. was founded in 1986 and is based in Los Angeles, California.

About Natural Grocers by Vitamin Cottage

Natural Grocers by Vitamin Cottage, Inc., together with its subsidiaries, retails natural and organic groceries, and dietary supplements in the United States. The company’s stores offer natural and organic grocery products, such as organic produce; private label repackaged bulk products, including dried fruits, nuts, grains, granolas, teas, herbs, and spices, as well as peanut and almond butters; private label products comprising grocery staples, household products, bulk foods, and vitamins and dietary supplements, as well as organic eggs, organic flavored coffee, and organic mustard; dry, frozen, and canned groceries; meat and seafood products; dairy products, dairy substitutes, and eggs; prepared foods; bread and baked products; beverages; and beer, wine, and hard cider products. Its stores also provide name-brand supplements, as well as private label dietary supplements; body care products consisting of cosmetics, skin care, hair care, fragrance, and personal care products containing natural and organic ingredients; pet care and food products; books and handouts; household and general merchandise, including cleaning supplies, paper products, and dish and laundry soaps, as well as other common household products, such as diapers; and books and handouts. The company operates its retail stores under the Natural Grocers by Vitamin Cottage trademark, as well as Vitamin Cottage Natural Grocers and Health Hotline trademarks. The company also offers science-based nutrition education programs to help customers make informed health and nutrition choices. Natural Grocers by Vitamin Cottage, Inc. was founded in 1955 and is headquartered in Lakewood, Colorado.