Head to Head Analysis: Village Farms International (NASDAQ:VFF) versus Nestle (OTCMKTS:NSRGY)

Village Farms International (NASDAQ:VFF) and Nestle (OTCMKTS:NSRGY) are both consumer staples companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, institutional ownership, profitability and earnings.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Village Farms International and Nestle, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Village Farms International	0	1	2	1	3.00
Nestle	1	3	1	0	2.00

Nestle has a consensus price target of $91.00, indicating a potential downside of 7.60%. Given Nestle’s higher possible upside, analysts plainly believe Nestle is more favorable than Village Farms International.

Earnings and Valuation

This table compares Village Farms International and Nestle”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Village Farms International	$336.18 million	1.31	-$35.85 million	$0.18	21.11
Nestle	$103.78 billion	2.44	$12.36 billion	N/A	N/A

Nestle has higher revenue and earnings than Village Farms International.

Risk & Volatility

Village Farms International has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500. Comparatively, Nestle has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500.

Insider and Institutional Ownership

12.2% of Village Farms International shares are owned by institutional investors. Comparatively, 0.6% of Nestle shares are owned by institutional investors. 12.6% of Village Farms International shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Village Farms International	7.47%	1.98%	1.35%
Nestle	N/A	N/A	N/A

Summary

Village Farms International beats Nestle on 9 of the 13 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 Nestle

Nestlé S.A., together with its subsidiaries, operates as a food and beverage company. The company operates through Zone North America; Zone Europe; Zone Asia, Oceania, and Africa; Zone Latin America; Zone Greater China; Nespresso; and Nestlé Health Science segments. It offers baby foods under the Cerelac, Gerber, Nido, and NaturNes brands; bottled water under the Nestlé Pure Life, Perrier, Vittel, Buxton, Erikli, and S.Pellegrino brands; cereals under the Fitness, Nesquik, cheerios, and Lion Cereals brands; and chocolate and confectionery products under the KitKat, Smarties, Aero, Nestlé Les Recettes de l'Atelier, Milkybar, Baci Perugina, Quality Street, and Fitness brands. The company provides coffee products under the Nescafé, Nespresso, Nescafé Dolce Gusto, Starbucks Coffee At Home, and Blue Bottle Coffee brands; culinary, chilled, and frozen foods under the Maggi, DiGiorno, Thomy, Garden Gourmet, Sweet Earth, Hot Pockets, Stouffer's, Buitoni, Lean, and Life Cuisine brands; dairy products under the Carnation, Nido, Bear, Coffee-Mate, and La Laitière brands; and drinks under the Nesquik, Nestea, Nescafé, and Milo brands. In addition, it offers food service products under the Milo, Nescafé, Maggi, Chef, Nestea, Stouffer's, Chef-Mate, Minor's, and Lean Cuisine brand names; healthcare nutrition products under the Boost, Garden of Life, Nature's Bounty, Persona, Vital Proteins, Solgar, Peptamen, Resource, Vitaflo, Impact, and Compleat brands; ice cream products under the Movenpick, Häagen-Dazs, Nestlé Ice Cream, and Extrême brands; and pet care products under the Purina, ONE, Alpo, Felix, Pro Plan, Cat Chow, Fancy Feast, Bakers, Friskies, Dog Chow, Beneful, and Gourmet brands. The company was founded in 1866 and is headquartered in Vevey, Switzerland.