Head to Head Analysis: Sadot Group (NASDAQ:SDOT) & Krispy Kreme (NASDAQ:DNUT)

Sadot Group (NASDAQ:SDOT) and Krispy Kreme (NASDAQ:DNUT) are both small-cap consumer staples companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, risk, dividends, earnings and valuation.

Earnings and Valuation

This table compares Sadot Group and Krispy Kreme”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sadot Group	$246.90 million	0.02	-$93.39 million	($299.60)	-0.02
Krispy Kreme	$1.52 billion	0.40	-$515.77 million	($2.99)	-1.19

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

Volatility and Risk

Sadot Group has a beta of 0.46, suggesting that its share price is 54% less volatile than the S&P 500. Comparatively, Krispy Kreme has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Sadot Group and Krispy Kreme, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sadot Group	1	0	0	0	1.00
Krispy Kreme	3	2	3	0	2.00

Krispy Kreme has a consensus target price of $4.63, suggesting a potential upside of 29.92%. Given Krispy Kreme’s stronger consensus rating and higher probable upside, analysts plainly believe Krispy Kreme is more favorable than Sadot Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sadot Group	-37.82%	-963.54%	-188.85%
Krispy Kreme	-33.36%	-4.34%	-1.15%

Institutional and Insider Ownership

13.3% of Sadot Group shares are owned by institutional investors. Comparatively, 81.7% of Krispy Kreme shares are owned by institutional investors. 0.4% of Sadot Group shares are owned by company insiders. Comparatively, 1.6% of Krispy Kreme shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Krispy Kreme beats Sadot Group on 12 of the 14 factors compared between the two stocks.

About Sadot Group

Sadot Group Inc. provides supply chain solutions that address growing food security challenges worldwide. The company is involved in the agri-commodity sourcing and trading operations for food/feed products, such as soybean meal, wheat, and corn; and farm operations, including producing grains and tree crops in Southern Africa. The company is also involved in the food service operations across the United States. The company was formerly known as Muscle Maker Inc. and changed its name to Sadot Group Inc. Sadot Group Inc. was incorporated in 2019 and is headquartered in Fort Worth, Texas.

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.