Financial Comparison: Krispy Kreme (NASDAQ:DNUT) versus Nestle (OTCMKTS:NSRGY)

Krispy Kreme (NASDAQ:DNUT) and Nestle (OTCMKTS:NSRGY) are both consumer staples companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitability, valuation and risk.

Valuation & Earnings

This table compares Krispy Kreme and Nestle”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Krispy Kreme	$1.52 billion	0.38	-$515.77 million	($3.03)	-1.12
Nestle	$107.99 billion	2.35	$10.90 billion	N/A	N/A

Nestle has higher revenue and earnings than Krispy Kreme.

Analyst Ratings

This is a breakdown of current ratings and price targets for Krispy Kreme and Nestle, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Krispy Kreme	3	3	3	1	2.20
Nestle	1	2	1	0	2.00

Krispy Kreme presently has a consensus target price of $4.85, indicating a potential upside of 43.49%. Nestle has a consensus target price of $91.00, indicating a potential downside of 7.68%. Given Krispy Kreme’s stronger consensus rating and higher probable upside, equities analysts clearly believe Krispy Kreme is more favorable than Nestle.

Risk and Volatility

Krispy Kreme has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500. Comparatively, Nestle has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500.

Profitability

This table compares Krispy Kreme and Nestle’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Krispy Kreme	-33.87%	-3.66%	-1.07%
Nestle	N/A	N/A	N/A

Insider and Institutional Ownership

81.7% of Krispy Kreme shares are owned by institutional investors. Comparatively, 0.6% of Nestle shares are owned by institutional investors. 3.0% of Krispy Kreme shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Krispy Kreme beats Nestle on 7 of the 13 factors compared between the two stocks.

About Krispy Kreme

Krispy Kreme, Inc., together with its subsidiaries, produces doughnuts in the United States, the United Kingdom, Ireland, Australia, New Zealand, Mexico, Canada, Japan, and internationally. The company operates through three segments: U.S., International, and Market Development. The company offers doughnut experiences through hot light theater and fresh shops, delivered fresh daily branded cabinets and merchandising units within grocery and convenience stores, quick service restaurants, club memberships, drug stores, and ecommerce, as well as through its branded sweet treat line comprising Krispy Kreme branded sweet treats. It also provides cookies under the Insomnia Cookies brand, cookie cakes, ice cream, cookie-wiches, and brownies; and operates Krispy Kreme company-owned shops and franchise shops. The company was formerly known as Krispy Kreme Doughnuts, Inc. and changed its name to Krispy Kreme, Inc. in May 2021. Krispy Kreme, Inc. was founded in 1937 and is based in Charlotte, North Carolina.

About Nestle

Nestlé S.A., together with its subsidiaries, operates as a food and beverage company. The company operates through Zone North America; Zone Europe; Zone Asia, Oceania, and Africa; Zone Latin America; Zone Greater China; Nespresso; and Nestlé Health Science segments. It offers baby foods under the Cerelac, Gerber, Nido, and NaturNes brands; bottled water under the Nestlé Pure Life, Perrier, Vittel, Buxton, Erikli, and S.Pellegrino brands; cereals under the Fitness, Nesquik, cheerios, and Lion Cereals brands; and chocolate and confectionery products under the KitKat, Smarties, Aero, Nestlé Les Recettes de l'Atelier, Milkybar, Baci Perugina, Quality Street, and Fitness brands. The company provides coffee products under the Nescafé, Nespresso, Nescafé Dolce Gusto, Starbucks Coffee At Home, and Blue Bottle Coffee brands; culinary, chilled, and frozen foods under the Maggi, DiGiorno, Thomy, Garden Gourmet, Sweet Earth, Hot Pockets, Stouffer's, Buitoni, Lean, and Life Cuisine brands; dairy products under the Carnation, Nido, Bear, Coffee-Mate, and La Laitière brands; and drinks under the Nesquik, Nestea, Nescafé, and Milo brands. In addition, it offers food service products under the Milo, Nescafé, Maggi, Chef, Nestea, Stouffer's, Chef-Mate, Minor's, and Lean Cuisine brand names; healthcare nutrition products under the Boost, Garden of Life, Nature's Bounty, Persona, Vital Proteins, Solgar, Peptamen, Resource, Vitaflo, Impact, and Compleat brands; ice cream products under the Movenpick, Häagen-Dazs, Nestlé Ice Cream, and Extrême brands; and pet care products under the Purina, ONE, Alpo, Felix, Pro Plan, Cat Chow, Fancy Feast, Bakers, Friskies, Dog Chow, Beneful, and Gourmet brands. The company was founded in 1866 and is headquartered in Vevey, Switzerland.