Head to Head Comparison: Mission Produce (NASDAQ:AVO) and Freshpet (NASDAQ:FRPT)

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

Profitability

This table compares Freshpet and Mission Produce’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Freshpet	10.90%	6.39%	4.36%
Mission Produce	0.12%	5.91%	3.41%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Freshpet and Mission Produce, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Freshpet	0	7	9	0	2.56
Mission Produce	1	0	4	1	2.83

Freshpet currently has a consensus target price of $80.31, suggesting a potential upside of 24.30%. Mission Produce has a consensus target price of $16.00, suggesting a potential upside of 35.02%. Given Mission Produce’s stronger consensus rating and higher possible upside, analysts plainly believe Mission Produce is more favorable than Freshpet.

Earnings and Valuation

This table compares Freshpet and Mission Produce”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Freshpet	$1.21 billion	2.59	$139.14 million	$2.52	25.64
Mission Produce	$1.39 billion	0.75	$37.70 million	$0.03	395.00

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

Insider and Institutional Ownership

63.6% of Mission Produce shares are owned by institutional investors. 4.3% of Freshpet shares are owned by insiders. Comparatively, 30.8% of Mission Produce shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Freshpet has a beta of 1.75, suggesting that its share price is 75% more volatile than the S&P 500. Comparatively, Mission Produce has a beta of 0.45, suggesting that its share price is 55% less volatile than the S&P 500.

Summary

Freshpet beats Mission Produce on 8 of the 15 factors compared between the two stocks.

About Freshpet

Freshpet, Inc. makes and markets fresh, refrigerated food and treats for dogs and cats. Founded in 2006, the company focuses on recipes made with fresh ingredients and positioned as an alternative to shelf-stable pet food. Its products are sold under brands including Freshpet, Freshpet Select, Vital and Nature’s Fresh. Freshpet distributes them through refrigerated displays in grocery, mass-market, club and pet specialty stores, as well as through online retailers. The company primarily serves customers in the United States and Canada and also sells its products in select international markets.

About Mission Produce

Mission Produce is a global producer, packer and distributor of fresh avocados and other fruit. The company sources produce from growing regions around the world and provides services that include packing, ripening, quality control and distribution. Founded in 1983 by Steve Barnard, Mission Produce has built a global supply chain serving customers in North America, Europe and Asia. Its sourcing network includes countries such as Mexico, Peru, Chile and Colombia, helping supply fruit across different growing seasons.