Where Food Comes From (NASDAQ:WFCF) vs. Firemans Contractors (OTCMKTS:FRCN) Financial Analysis

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Where Food Comes From	$25.51 million	2.28	$2.12 million	$0.52	21.92
Firemans Contractors	N/A	N/A	N/A	N/A	N/A

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Where Food Comes From and Firemans Contractors, as provided by MarketBeat.com.

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

Given Firemans Contractors’ higher probable upside, analysts clearly believe Firemans Contractors is more favorable than Where Food Comes From.

Profitability

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

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

Risk and Volatility

Where Food Comes From has a beta of 0.24, suggesting that its stock price is 76% less volatile than the S&P 500. Comparatively, Firemans Contractors has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500.

Institutional & Insider Ownership

18.8% of Where Food Comes From shares are held by institutional investors. 50.3% of Where Food Comes From shares are held by insiders. Comparatively, 1.3% of Firemans Contractors shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Where Food Comes From beats Firemans Contractors on 7 of the 9 factors compared between the two stocks.

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.

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.