Critical Survey: Barfresh Food Group (NASDAQ:BRFH) vs. Fomento Economico Mexicano (NYSE:FMX)

Barfresh Food Group (NASDAQ:BRFH) and Fomento Economico Mexicano (NYSE:FMX) are both consumer staples companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, profitability, institutional ownership and earnings.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Barfresh Food Group and Fomento Economico Mexicano, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Barfresh Food Group	1	0	1	0	2.00
Fomento Economico Mexicano	0	5	3	0	2.38

Barfresh Food Group currently has a consensus target price of $6.00, suggesting a potential upside of 107.61%. Fomento Economico Mexicano has a consensus target price of $110.67, suggesting a potential downside of 5.08%. Given Barfresh Food Group’s higher probable upside, research analysts clearly believe Barfresh Food Group is more favorable than Fomento Economico Mexicano.

Volatility and Risk

Barfresh Food Group has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500. Comparatively, Fomento Economico Mexicano has a beta of 0.4, suggesting that its share price is 60% less volatile than the S&P 500.

Profitability

This table compares Barfresh Food Group and Fomento Economico Mexicano’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Barfresh Food Group	-24.05%	-151.77%	-57.93%
Fomento Economico Mexicano	2.29%	6.11%	2.61%

Insider and Institutional Ownership

22.7% of Barfresh Food Group shares are owned by institutional investors. Comparatively, 61.0% of Fomento Economico Mexicano shares are owned by institutional investors. 34.2% of Barfresh Food Group shares are owned by insiders. Comparatively, 5.7% of Fomento Economico Mexicano shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Barfresh Food Group and Fomento Economico Mexicano”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Barfresh Food Group	$10.72 million	4.31	-$2.83 million	($0.19)	-15.21
Fomento Economico Mexicano	$43.86 billion	0.92	$1.01 billion	$2.85	40.91

Fomento Economico Mexicano has higher revenue and earnings than Barfresh Food Group. Barfresh Food Group is trading at a lower price-to-earnings ratio than Fomento Economico Mexicano, indicating that it is currently the more affordable of the two stocks.

Summary

Fomento Economico Mexicano beats Barfresh Food Group on 10 of the 14 factors compared between the two stocks.

About Barfresh Food Group

Barfresh Food Group, Inc., together with its subsidiaries, manufactures and distributes ready-to-drink and ready-to-blend frozen beverages in the United States. It offers smoothies, shakes and frappes in various formats comprising ready-to-drink smoothie, easy pour, juice concentrates, and single serve. The company was founded in 2009 and is based in Los Angeles, California.

About Fomento Economico Mexicano

Fomento Económico Mexicano, S.A.B. de C.V., through its subsidiaries, operates as a bottler of Coca-Cola trademark beverages. The company produces, markets, and distributes Coca-Cola trademark beverages in Mexico, Guatemala, Nicaragua, Costa Rica, Panama, Colombia, Venezuela, Brazil, Argentina, and Uruguay. It also operates small-box retail chain stores in Mexico, Colombia, Peru, Chile, and Brazil under the OXXO name; retail service stations for fuels, motor oils, lubricants, and car care products under the OXXO GAS name in Mexico; and drugstores in Chile, Colombia, Ecuador, and Mexico under the Cruz Verde, Fybeca, SanaSana, YZA, La Moderna, and Farmacon names. In addition, the company is involved in the production and distribution of collers, commercial refrigeration equipment, plastic boxes, food processing, and preservation and weighing equipment; and provision of logistic transportation, distribution and maintenance, point-of-sale refrigeration, and plastics solutions, as well as distribution platform for cleaning products and consumables. Further, it operates small-box retail and food convenience chain stores in Switzerland, Germany, Austria, Luxembourg, and the Netherlands under the k kiosk, Brezelkönig, BackWerk, Ditsch, Press & Books, avec, Caffè Spettacolo, and ok.) names, as well as pretzels under the Ditsch name. The company was founded in 1890 and is based in Monterrey, Mexico.