Armanino Foods of Distinction (OTCMKTS:AMNF) versus Australian Oilseeds (NASDAQ:COOT) Critical Analysis

Australian Oilseeds (NASDAQ:COOT) and Armanino Foods of Distinction (OTCMKTS:AMNF) are both small-cap consumer staples companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.

Valuation and Earnings

This table compares Australian Oilseeds and Armanino Foods of Distinction”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Australian Oilseeds	$27.01 million	0.61	-$840,000.00	($0.04)	-14.75
Armanino Foods of Distinction	$69.40 million	5.15	$14.61 million	$0.55	20.91

Armanino Foods of Distinction has higher revenue and earnings than Australian Oilseeds. Australian Oilseeds is trading at a lower price-to-earnings ratio than Armanino Foods of Distinction, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Australian Oilseeds and Armanino Foods of Distinction’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Australian Oilseeds	-2.98%	-104.19%	-4.15%
Armanino Foods of Distinction	23.65%	48.19%	33.53%

Insider and Institutional Ownership

13.0% of Australian Oilseeds shares are owned by institutional investors. Comparatively, 0.1% of Armanino Foods of Distinction shares are owned by institutional investors. 69.1% of Australian Oilseeds shares are owned by insiders. Comparatively, 30.2% of Armanino Foods of Distinction shares are owned 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.

Risk & Volatility

Australian Oilseeds has a beta of 0.07, indicating that its share price is 93% less volatile than the S&P 500. Comparatively, Armanino Foods of Distinction has a beta of 0.09, indicating that its share price is 91% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Australian Oilseeds and Armanino Foods of Distinction, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Australian Oilseeds	1	0	0	0	1.00
Armanino Foods of Distinction	0	1	1	0	2.50

Armanino Foods of Distinction has a consensus price target of $15.00, suggesting a potential upside of 30.43%. Given Armanino Foods of Distinction’s stronger consensus rating and higher probable upside, analysts clearly believe Armanino Foods of Distinction is more favorable than Australian Oilseeds.

Summary

Armanino Foods of Distinction beats Australian Oilseeds on 12 of the 14 factors compared between the two stocks.

About Australian Oilseeds

Australian Oilseeds Holdings Ltd. engages in the manufacture and sale oil seeds through its subsidiaries. It focuses on acquiring, engaging in a share exchange, share reconstruction, and amalgamation with, purchasing all or substantially all the assets of, entering contractual arrangements with, or engaging in any other similar business combination with one or more businesses or entities. The company was founded on December 29, 2022 and is headquartered in Cootamundra, Australia.

About Armanino Foods of Distinction

Armanino Foods of Distinction, Inc. produces and markets frozen food products in the United States. The company offers gourmet beef, Italian style beef and pork, and smoked turkey meatballs; grated parmesan and 3 cheese blend cheese; and various pesto, such as basil, artichoke, cilantro, dried tomato and garlic, roasted garlic, roasted red bell pepper, and southwest chipotle. It also provides frozen pasta, which includes beef cannelloni, cheese manicotti, cheese stuffed shells, cheese tortellini; pasta sheets, potato gnocchi, and tricolor cheese tortellini, as well as beef, butternut squash, four cheese, cheese and spinach, and wild mushroom ravioli; and various sauces, comprising creamy garlic, alfresco, Bolognese, chimichurri, harissa, and romesco. The company offers its products under the Armanino brand. It markets its products through a network of food brokers and sells to retail and foodservice distributors, club-type stores, and industrial accounts. The company was founded in 1978 and is based in Hayward, California.