Reviewing Fenbo (NASDAQ:FEBO) and Nestle (OTCMKTS:NSRGY)

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

Earnings & Valuation

This table compares Nestle and Fenbo”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nestle	$103.78 billion	2.53	$12.36 billion	N/A	N/A
Fenbo	$17.11 million	0.72	-$1.99 million	N/A	N/A

Nestle has higher revenue and earnings than Fenbo.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nestle	N/A	N/A	N/A
Fenbo	N/A	N/A	N/A

Volatility & Risk

Nestle has a beta of 0.51, suggesting that its stock price is 49% less volatile than the S&P 500. Comparatively, Fenbo has a beta of -1.95, suggesting that its stock price is 295% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Nestle and Fenbo, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nestle	1	3	1	0	2.00
Fenbo	1	0	0	0	1.00

Nestle currently has a consensus price target of $91.00, indicating a potential downside of 10.62%. Given Nestle’s stronger consensus rating and higher possible upside, research analysts plainly believe Nestle is more favorable than Fenbo.

Institutional & Insider Ownership

0.6% of Nestle shares are owned by institutional investors. Comparatively, 0.0% of Fenbo shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Nestle beats Fenbo on 8 of the 8 factors compared between the two stocks.

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.

About Fenbo

Fenbo Holdings Limited, through its subsidiaries, manufactures and sells personal care electric appliances and toys products. The company offers curling wands and irons, flat irons and hair straighteners, hair dryers, trimmers, nail polishers, pet shampoo brushes, eyebrow pliers, etc. It serves customers in Europe, North America, South America, Asia, and internationally. The company was founded in 1993 and is headquartered in Kwun Tong, Hong Kong. Fenbo Holdings Limited operates as a subsidiary of Luxury Max Investments Limited.