Comparing Chanson International (NASDAQ:CHSN) & Alto Ingredients (NASDAQ:ALTO)

Chanson International (NASDAQ:CHSN) and Alto Ingredients (NASDAQ:ALTO) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, valuation, analyst recommendations, institutional ownership, profitability and earnings.

Risk & Volatility

Chanson International has a beta of -2.55, meaning that its share price is 355% less volatile than the S&P 500. Comparatively, Alto Ingredients has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Chanson International and Alto Ingredients, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chanson International	1	0	0	0	1.00
Alto Ingredients	1	1	1	0	2.00

Alto Ingredients has a consensus target price of $5.50, indicating a potential upside of 131.09%. Given Alto Ingredients’ stronger consensus rating and higher probable upside, analysts plainly believe Alto Ingredients is more favorable than Chanson International.

Profitability

This table compares Chanson International and Alto Ingredients’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chanson International	N/A	N/A	N/A
Alto Ingredients	-5.44%	-12.02%	-6.59%

Valuation and Earnings

This table compares Chanson International and Alto Ingredients”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chanson International	$18.23 million	4.42	$760,000.00	N/A	N/A
Alto Ingredients	$965.26 million	0.19	-$58.98 million	($0.69)	-3.45

Chanson International has higher earnings, but lower revenue than Alto Ingredients.

Institutional and Insider Ownership

2.8% of Chanson International shares are held by institutional investors. Comparatively, 42.4% of Alto Ingredients shares are held by institutional investors. 5.3% of Alto Ingredients shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Alto Ingredients beats Chanson International on 7 of the 12 factors compared between the two stocks.

About Chanson International

Chanson International Holding manufactures and sells a range of bakery products, seasonal products, and beverage products for individual and corporate customers. It offers packaged bakery products, such as cakes, bread, sweets, and snacks; birthday cakes; made-in-store pastries; mooncakes and zongzi products; and other products, including sandwiches, salads, toasts, croissants, soups, and desserts, as well as beverages and juice products. The company sells its products through a chain of bakeries, as well as digital platforms and third-party online food ordering platforms. It also offers eat-in services in its stores. The company sells its bakery and other products under the George Chanson, Patisserie Chanson, and Chanson brand names. It operates in Xinjiang in the People's Republic of China; and New York City, the United States. The company was formerly known as formerly known as RON Holding Limited and changed its name to Chanson International Holding in December 2020. The company was incorporated in 2019 and is headquartered in Urumqi, China. Chanson International Holding operates as a subsidiary of Danton Global Limited.

About Alto Ingredients

Alto Ingredients, Inc. produces, distributes, and markets specialty alcohols, renewable fuel, and essential ingredients in the United States. The company operates in three segments: Marketing and Distribution, Pekin Campus Production, and Western Production. It offers specialty alcohols used in mouthwash, cosmetics, pharmaceuticals, hand sanitizers, disinfectants, and cleaners for health, home, and beauty markets; grain neutral spirits used in alcoholic beverages and vinegar, as well as corn germ used in corn oils in the food and beverage markets; alcohols and other products for paint applications and fertilizers in the industrial and agriculture markets; and essential ingredients include dried yeast, corn protein meal, corn protein feed, distiller's grains, and liquid feed for commercial animal feed and pet food applications, as well as yeast for human consumption. The company also provides fuel-grade ethanol used as transportation fuel and distillers corn oil used as a biodiesel feedstock, as well as fuel-grade ethanol produced by third parties. In addition, it offers transportation, storage, and delivery services through third-party service providers. The company sells ethanol to integrated oil companies and gasoline marketers; essential ingredient feed products to dairies and feedlots; and corn oil to poultry, renewable diesel, and biodiesel customers. It operates alcohol production facilities. The company was formerly known as Pacific Ethanol, Inc. and changed its name to Alto Ingredients, Inc. in January 2021. Alto Ingredients, Inc. was founded in 2003 and is headquartered in Pekin, Illinois.