Freshpet (NASDAQ:FRPT) versus Seneca Foods (NASDAQ:SENEA) Critical Survey

Freshpet (NASDAQ:FRPT) and Seneca Foods (NASDAQ:SENEA) are both consumer staples companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, earnings, profitability, analyst recommendations, institutional ownership and valuation.

Risk and Volatility

Freshpet has a beta of 1.71, suggesting that its stock price is 71% more volatile than the S&P 500. Comparatively, Seneca Foods has a beta of 0.13, suggesting that its stock price is 87% less volatile than the S&P 500.

Insider and Institutional Ownership

42.5% of Seneca Foods shares are held by institutional investors. 4.4% of Freshpet shares are held by insiders. Comparatively, 8.4% of Seneca Foods shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Freshpet and Seneca Foods”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Freshpet	$1.08 billion	2.90	$46.92 million	$2.29	28.06
Seneca Foods	$1.58 billion	0.51	$41.22 million	$8.62	13.60

Freshpet has higher earnings, but lower revenue than Seneca Foods. Seneca Foods is trading at a lower price-to-earnings ratio than Freshpet, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Freshpet and Seneca Foods, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Freshpet	1	12	6	0	2.26
Seneca Foods	0	0	1	0	3.00

Freshpet presently has a consensus target price of $80.75, indicating a potential upside of 25.68%. Given Freshpet’s higher probable upside, equities research analysts plainly believe Freshpet is more favorable than Seneca Foods.

Profitability

This table compares Freshpet and Seneca Foods’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Freshpet	11.44%	5.73%	3.83%
Seneca Foods	3.73%	9.68%	5.03%

About Freshpet

Freshpet, Inc., together with its subsidiaries, manufactures, distributes, and markets natural fresh meals and treats for dogs and cats in the United States, Canada, and Europe. It sells dog food, cat food, and dog treats under the Freshpet brand name; and Dognation and Dog Joy labels through various classes of retail, including grocery, mass, club, pet specialty, and natural, as well as online. The company was incorporated in 2004 and is headquartered in Secaucus, New Jersey.

About Seneca Foods

Seneca Foods Corporation provides packaged fruits and vegetables in the United States and internationally. The company offers canned, frozen, and jarred produce; jarred fruit; and snack chips and other food products under the private label, as well as under various national and regional brands that the company owns or licenses, including Seneca, Libby’s, Aunt Nellie’s, Cherryman, Green Valley, and READ. In addition, it packs canned and frozen vegetables under contract packing agreements. Further, the company engages in the sale of cans, ends, and seeds, as well as trucking and aircraft operations. It provides its products to grocery outlets, including supermarkets, mass merchandisers, limited assortment stores, club stores, and dollar stores; specialty retailers; and food service distributors, restaurant chains, industrial markets, other food packagers, and export customers in approximately 55 countries, as well as federal, state, and local governments for school and other feeding programs. Seneca Foods Corporation was incorporated in 1949 and is headquartered in Fairport, New York.