Critical Comparison: Tootsie Roll Industries (NYSE:TR) versus Mama’s Creations (NASDAQ:MAMA)

Mama’s Creations (NASDAQ:MAMA) and Tootsie Roll Industries (NYSE:TR) are both consumer staples companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, institutional ownership, risk, valuation and dividends.

Valuation & Earnings

This table compares Mama’s Creations and Tootsie Roll Industries”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mama’s Creations	$171.71 million	3.48	$5.29 million	$0.17	74.59
Tootsie Roll Industries	$724.67 million	3.82	$100.05 million	$1.28	28.84

Tootsie Roll Industries has higher revenue and earnings than Mama’s Creations. Tootsie Roll Industries is trading at a lower price-to-earnings ratio than Mama’s Creations, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations and price targets for Mama’s Creations and Tootsie Roll Industries, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mama’s Creations	0	2	6	1	2.89
Tootsie Roll Industries	0	0	1	0	3.00

Mama’s Creations presently has a consensus price target of $19.86, indicating a potential upside of 56.60%. Given Mama’s Creations’ higher possible upside, analysts plainly believe Mama’s Creations is more favorable than Tootsie Roll Industries.

Risk & Volatility

Mama’s Creations has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500. Comparatively, Tootsie Roll Industries has a beta of 0.41, suggesting that its stock price is 59% less volatile than the S&P 500.

Profitability

This table compares Mama’s Creations and Tootsie Roll Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mama’s Creations	3.53%	10.05%	7.12%
Tootsie Roll Industries	13.14%	10.16%	7.64%

Insider and Institutional Ownership

45.2% of Mama’s Creations shares are held by institutional investors. Comparatively, 14.3% of Tootsie Roll Industries shares are held by institutional investors. 1.0% of Mama’s Creations shares are held by insiders. Comparatively, 46.8% of Tootsie Roll Industries shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Tootsie Roll Industries beats Mama’s Creations on 9 of the 15 factors compared between the two stocks.

About Mama’s Creations

Mama’s Creations, Inc. engages in the marketing, manufacturing, and distribution of beef meatballs with sauce, turkey meatballs with sauce, beef meat loaf, sausage and peppers, chicken parmesan, and other similar meats and sauces. Its products include beef meatballs, turkey meatballs, stuffed meatballs, lasagna roll ups, retail ready meals, bulk deli, single-size pasta bowls, and packaged refrigerated products. Its brands include MamaMancini’s, Creative Salads, and The Olive Branch. The company was founded by Daniel Dougherty on July 22, 2009 and is headquartered in East Rutherford, NJ.

About Tootsie Roll Industries

Tootsie Roll Industries, Inc., together with its subsidiaries, engages in the manufacture and sale of confectionery products in the United States, Canada, Mexico, and internationally. It sells its products under the Tootsie Roll, Tootsie Fruit Rolls, Frooties, Tootsie Pops, Tootsie Mini Pops, Child's Play, Caramel Apple Pops, Charms, Blow-Pop, Charms Mini Pops, Cella's, Dots, Junior Mints, Charleston Chew, Sugar Daddy, Sugar Babies, Andes, Fluffy Stuff, Dubble Bubble, Razzles, Cry Baby, NIK-L-NIP, and Tutsi Pop trademarks. The company sells its products directly to wholesale distributors of candy, and food and groceries; and supermarkets, variety stores, dollar stores, chain grocers, drug chains, discount chains, cooperative grocery associations, mass merchandisers, warehouse and membership club stores, vending machine operators, e-commerce merchants, the United States military, and fund-raising charitable organizations, as well as through food and grocery brokers. Tootsie Roll Industries, Inc. was founded in 1896 and is headquartered in Chicago, Illinois.