Critical Contrast: DNA Precious Metals (OTCMKTS:AWAW) and Where Food Comes From (NASDAQ:WFCF)

Where Food Comes From (NASDAQ:WFCF) and DNA Precious Metals (OTCMKTS:AWAW) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, institutional ownership, risk and earnings.

Risk and Volatility

Where Food Comes From has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500. Comparatively, DNA Precious Metals has a beta of 12.48, meaning that its share price is 1,148% more volatile than the S&P 500.

Profitability

This table compares Where Food Comes From and DNA Precious Metals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Where Food Comes From	7.99%	18.22%	11.07%
DNA Precious Metals	N/A	N/A	N/A

Insider & Institutional Ownership

18.8% of Where Food Comes From shares are held by institutional investors. 50.3% of Where Food Comes From shares are held by insiders. Comparatively, 0.7% of DNA Precious Metals shares are held 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.

Analyst Recommendations

This is a breakdown of current ratings for Where Food Comes From and DNA Precious Metals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Where Food Comes From	0	1	0	0	2.00
DNA Precious Metals	0	0	0	0	0.00

Valuation & Earnings

This table compares Where Food Comes From and DNA Precious Metals”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Where Food Comes From	$25.60 million	2.50	$2.12 million	$0.39	31.77
DNA Precious Metals	N/A	N/A	N/A	N/A	N/A

Where Food Comes From has higher revenue and earnings than DNA Precious Metals.

Summary

Where Food Comes From beats DNA Precious Metals on 7 of the 8 factors compared between the two stocks.

About Where Food Comes From

Where Food Comes From, Inc., together with its subsidiaries, operates as a third-party food verification company in North America. The company operates through Verification and Certification, and Professional Services segments. It conducts on-site and desk audits to verify that claims being made about livestock, food, other specialty crops, and agricultural and aquaculture products are accurate, as well as offers Where Food Comes From Source Verified retail and restaurant labeling program, which connects consumers directly to the source of the food they purchase through product labeling, and web-based information sharing and education. It also offers professional services and technology solutions; verification solutions; and consulting services, as well as sells hardware. The company serves beef and pork packers, organic producers and processors, and specialty retail chains. The company was formerly known as Integrated Management Information, Inc. and changed its name to Where Food Comes From, Inc. in December 2012. Where Food Comes From, Inc. was founded in 1996 and is based in Castle Rock, Colorado.

About DNA Precious Metals

White Fox Ventures, Inc. focuses on the establishment of business academies in Japan. It plans, manages, and promotes seminars and classes. The company is based in New York, New York.