Financial Contrast: Where Food Comes From (WFCF) vs. Its Competitors

Where Food Comes From (NASDAQ:WFCF) is one of 203 publicly-traded companies in the “Professional Services” industry, but how does it compare to its competitors? We will compare Where Food Comes From to related companies based on the strength of its dividends, analyst recommendations, earnings, risk, profitability, institutional ownership and valuation.

Insider & Institutional Ownership

18.8% of Where Food Comes From shares are held by institutional investors. Comparatively, 57.4% of shares of all “Professional Services” companies are held by institutional investors. 53.5% of Where Food Comes From shares are held by insiders. Comparatively, 17.1% of shares of all “Professional Services” companies 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.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Where Food Comes From and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Where Food Comes From	0	1	0	0	2.00
Where Food Comes From Competitors	1579	6433	9163	430	2.48

As a group, “Professional Services” companies have a potential upside of 26.92%. Given Where Food Comes From’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Where Food Comes From has less favorable growth aspects than its competitors.

Profitability

This table compares Where Food Comes From and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Where Food Comes From	5.78%	15.39%	10.24%
Where Food Comes From Competitors	-0.59%	20.75%	4.33%

Earnings & Valuation

This table compares Where Food Comes From and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Where Food Comes From	$24.89 million	$1.54 million	57.89
Where Food Comes From Competitors	$3.29 billion	$228.36 million	34.89

Where Food Comes From’s competitors have higher revenue and earnings than Where Food Comes From. Where Food Comes From is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Risk & Volatility

Where Food Comes From has a beta of 0.15, suggesting that its share price is 85% less volatile than the S&P 500. Comparatively, Where Food Comes From’s competitors have a beta of 0.98, suggesting that their average share price is 2% less volatile than the S&P 500.

Summary

Where Food Comes From competitors beat Where Food Comes From on 9 of the 13 factors compared.

Where Food Comes From Company Profile

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.