Analyzing Barfresh Food Group (NASDAQ:BRFH) and Westrock Coffee (NASDAQ:WEST)

Barfresh Food Group (NASDAQ:BRFH) and Westrock Coffee (NASDAQ:WEST) are both small-cap consumer staples companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, institutional ownership, analyst recommendations and profitability.

Analyst Ratings

This is a summary of recent ratings and target prices for Barfresh Food Group and Westrock Coffee, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Barfresh Food Group	2	0	1	0	1.67
Westrock Coffee	1	1	3	0	2.40

Barfresh Food Group presently has a consensus price target of $6.00, indicating a potential upside of 155.32%. Westrock Coffee has a consensus price target of $9.00, indicating a potential upside of 4.90%. Given Barfresh Food Group’s higher probable upside, analysts clearly believe Barfresh Food Group is more favorable than Westrock Coffee.

Institutional & Insider Ownership

22.7% of Barfresh Food Group shares are owned by institutional investors. Comparatively, 45.1% of Westrock Coffee shares are owned by institutional investors. 26.7% of Barfresh Food Group shares are owned by company insiders. Comparatively, 27.7% of Westrock Coffee shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Barfresh Food Group and Westrock Coffee”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Barfresh Food Group	$14.21 million	2.67	-$2.69 million	($0.17)	-13.82
Westrock Coffee	$1.19 billion	0.70	-$90.44 million	($0.75)	-11.44

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

Volatility & Risk

Barfresh Food Group has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500. Comparatively, Westrock Coffee has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500.

Profitability

This table compares Barfresh Food Group and Westrock Coffee’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Barfresh Food Group	-15.34%	-148.74%	-27.14%
Westrock Coffee	-5.59%	-2,145.68%	-3.52%

Summary

Westrock Coffee beats Barfresh Food Group on 9 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 Westrock Coffee

Westrock Coffee Company, LLC operates as an integrated coffee, tea, flavors, extracts, and ingredients solutions provider in the United States and internationally. It operates through two segments, Beverage Solutions, and Sustainable Sourcing & Traceability (SS&T). The Beverage Solutions segment provides various packaging, including branded and private label coffee in bags, fractional packs, and single serve cups, as well as extract solutions for applications in cold brew and ready-to-drink offerings. The SS&T segment engages in delivery and settlement of forward sales contracts for green coffee. The company offers coffee sourcing, supply chain management, product development, roasting, packaging, and distribution services to the retail, food service and restaurant, convenience store and travel center, non-commercial account, CPG, and hospitality industries. Westrock Coffee Company, LLC was founded in 2009 and is headquartered in Little Rock, Arkansas.