Analyzing Where Food Comes From (NASDAQ:WFCF) and Firemans Contractors (OTCMKTS:FRCN)

Firemans Contractors (OTCMKTS:FRCN) and Where Food Comes From (NASDAQ:WFCF) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, institutional ownership, risk and earnings.

Risk & Volatility

Firemans Contractors has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500. Comparatively, Where Food Comes From has a beta of 0.3, meaning that its stock price is 70% less volatile than the S&P 500.

Profitability

This table compares Firemans Contractors and Where Food Comes From’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Firemans Contractors	N/A	N/A	N/A
Where Food Comes From	10.58%	24.41%	15.18%

Institutional & Insider Ownership

18.8% of Where Food Comes From shares are owned by institutional investors. 1.3% of Firemans Contractors shares are owned by insiders. Comparatively, 50.3% of Where Food Comes From shares are owned by 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.

Earnings and Valuation

This table compares Firemans Contractors and Where Food Comes From”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Firemans Contractors	N/A	N/A	N/A	N/A	N/A
Where Food Comes From	$25.75 million	2.30	$2.12 million	$0.52	22.27

Where Food Comes From has higher revenue and earnings than Firemans Contractors.

Analyst Ratings

This is a summary of current ratings and recommmendations for Firemans Contractors and Where Food Comes From, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Firemans Contractors	0	0	0	0	0.00
Where Food Comes From	0	1	0	0	2.00

Summary

Where Food Comes From beats Firemans Contractors on 7 of the 8 factors compared between the two stocks.

About Firemans Contractors

Firemans Contractors, Inc. provides parking lot maintenance services in the United States. Its services include asphalt maintenance and repair, concrete repair, crack/joint sealing, excavation, line removal, painting, pressure washing, seal coating, signage, speed bumps, parking lot and warehouse striping, and wheel stops. The company was founded in 2009 and is headquartered in Fort Worth, Texas.

About Where Food Comes From

Where Food Comes From, Inc., together with its subsidiaries, operates as a third-party food verification company in North America. The company operates through Verification and Certification, and Professional Services segments. It conducts on-site and desk audits to verify that claims being made about livestock, food, other specialty crops, and agricultural and aquaculture products are accurate, as well as offers Where Food Comes From Source Verified retail and restaurant labeling program, which connects consumers directly to the source of the food they purchase through product labeling, and web-based information sharing and education. It also offers professional services and technology solutions; verification solutions; and consulting services, as well as sells hardware. The company serves beef and pork packers, organic producers and processors, and specialty retail chains. The company was formerly known as Integrated Management Information, Inc. and changed its name to Where Food Comes From, Inc. in December 2012. Where Food Comes From, Inc. was founded in 1996 and is based in Castle Rock, Colorado.