Medifast (NYSE:MED) vs. Tofutti Brands (OTCMKTS:TOFB) Financial Survey

Tofutti Brands (OTCMKTS:TOFB) and Medifast (NYSE:MED) are both small-cap consumer staples companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, earnings, risk, valuation, profitability and analyst recommendations.

Analyst Recommendations

This is a breakdown of current ratings for Tofutti Brands and Medifast, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tofutti Brands	0	0	0	0	0.00
Medifast	1	1	0	0	1.50

Medifast has a consensus target price of $16.50, indicating a potential upside of 45.05%. Given Medifast’s stronger consensus rating and higher possible upside, analysts clearly believe Medifast is more favorable than Tofutti Brands.

Risk & Volatility

Tofutti Brands has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500. Comparatively, Medifast has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500.

Insider & Institutional Ownership

5.1% of Tofutti Brands shares are owned by institutional investors. Comparatively, 95.5% of Medifast shares are owned by institutional investors. 7.9% of Tofutti Brands shares are owned by company insiders. Comparatively, 2.9% of Medifast shares are owned by company 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.

Profitability

This table compares Tofutti Brands and Medifast’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tofutti Brands	-8.74%	-23.29%	-18.27%
Medifast	0.76%	2.00%	1.50%

Valuation & Earnings

This table compares Tofutti Brands and Medifast”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tofutti Brands	$8.82 million	0.43	-$860,000.00	($0.13)	-5.60
Medifast	$429.70 million	0.29	$2.09 million	$0.01	1,137.50

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

Summary

Medifast beats Tofutti Brands on 10 of the 13 factors compared between the two stocks.

About Tofutti Brands

Tofutti Brands Inc. engages in the development, production, and marketing of plant based, dairy free vegan frozen desserts, cheeses, and other food products under the TOFUTTI brand in the United States, Europe, the Middle East, the Asia Pacific, and Africa. The company offers frozen desserts, including frozen sandwiches and chocolate wafers; ice cream sandwiches; dairy free vegan cheese products, such as cream cheese, sour cream, cheese slices, and dairy free ricotta cheese alternatives; spreads; and frozen food products. It sells its products through independent unaffiliated food brokers to distributors, as well as on a direct basis to retail chain accounts or to warehouse accounts that directly service chain accounts. Tofutti Brands, Inc. was founded in 1981 and is based in Cranford, New Jersey.

About Medifast

Medifast, Inc., through its subsidiaries, engages in the manufacture and sale of weight loss, weight management, and healthy living products in the United States and the Asia-Pacific. It offers bars, puffs, cereal, crunchers, drinks, hearty choices, oatmeal, pancakes, pudding, soft serve, shakes, smoothies, soft bakes, and soups under the OPTAVIA, OPTAVIA ACTIVE, and Optimal Health brand names. The company markets its products through point-of-sale transactions, as well as through ecommerce platform. Medifast, Inc. was founded in 1980 and is headquartered in Baltimore, Maryland.