Analyzing J & J Snack Foods (NASDAQ:JJSF) & Armanino Foods of Distinction (OTCMKTS:AMNF)

Armanino Foods of Distinction (OTCMKTS:AMNF) and J & J Snack Foods (NASDAQ:JJSF) are both small-cap consumer staples companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.

Earnings and Valuation

This table compares Armanino Foods of Distinction and J & J Snack Foods”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Armanino Foods of Distinction	$76.10 million	4.84	$18.80 million	$0.63	19.04
J & J Snack Foods	$1.52 billion	0.94	$65.60 million	$2.60	29.38

J & J Snack Foods has higher revenue and earnings than Armanino Foods of Distinction. Armanino Foods of Distinction is trading at a lower price-to-earnings ratio than J & J Snack Foods, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Armanino Foods of Distinction has a beta of 0.11, indicating that its share price is 89% less volatile than the S&P 500. Comparatively, J & J Snack Foods has a beta of 0.4, indicating that its share price is 60% less volatile than the S&P 500.

Dividends

Armanino Foods of Distinction pays an annual dividend of $0.20 per share and has a dividend yield of 1.7%. J & J Snack Foods pays an annual dividend of $3.20 per share and has a dividend yield of 4.2%. Armanino Foods of Distinction pays out 31.7% of its earnings in the form of a dividend. J & J Snack Foods pays out 123.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. J & J Snack Foods has raised its dividend for 20 consecutive years. J & J Snack Foods is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

0.1% of Armanino Foods of Distinction shares are owned by institutional investors. Comparatively, 76.0% of J & J Snack Foods shares are owned by institutional investors. 30.2% of Armanino Foods of Distinction shares are owned by insiders. Comparatively, 20.4% of J & J Snack Foods shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Armanino Foods of Distinction and J & J Snack Foods, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Armanino Foods of Distinction	0	1	1	1	3.00
J & J Snack Foods	2	0	2	0	2.00

Armanino Foods of Distinction currently has a consensus price target of $15.00, suggesting a potential upside of 25.08%. J & J Snack Foods has a consensus price target of $110.50, suggesting a potential upside of 44.64%. Given J & J Snack Foods’ higher possible upside, analysts plainly believe J & J Snack Foods is more favorable than Armanino Foods of Distinction.

Profitability

This table compares Armanino Foods of Distinction and J & J Snack Foods’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Armanino Foods of Distinction	24.57%	46.16%	34.56%
J & J Snack Foods	3.23%	8.93%	6.07%

Summary

J & J Snack Foods beats Armanino Foods of Distinction on 10 of the 18 factors compared between the two stocks.

About Armanino Foods of Distinction

Armanino Foods of Distinction, Inc. produces and markets frozen food products in the United States. The company offers gourmet beef, Italian style beef and pork, and smoked turkey meatballs; grated parmesan and 3 cheese blend cheese; and various pesto, such as basil, artichoke, cilantro, dried tomato and garlic, roasted garlic, roasted red bell pepper, and southwest chipotle. It also provides frozen pasta, which includes beef cannelloni, cheese manicotti, cheese stuffed shells, cheese tortellini; pasta sheets, potato gnocchi, and tricolor cheese tortellini, as well as beef, butternut squash, four cheese, cheese and spinach, and wild mushroom ravioli; and various sauces, comprising creamy garlic, alfresco, Bolognese, chimichurri, harissa, and romesco. The company offers its products under the Armanino brand. It markets its products through a network of food brokers and sells to retail and foodservice distributors, club-type stores, and industrial accounts. The company was founded in 1978 and is based in Hayward, California.

About J & J Snack Foods

J&J Snack Foods Corp. engages in the manufacturing of nutritional snack foods and distribution of frozen beverages to the food service and retail supermarket industries. It operates through the following segments: Food Service, Retail Supermarkets, and Frozen Beverages. The Food Service segment includes soft pretzels, frozen novelties, churros, handheld products, and baked goods. The Retail Supermarkets segment offers soft pretzel products including Superpretzel, frozen juice treats and desserts, including Luigi’s real Italian ice, Minute Maid juice bars and soft frozen lemonade, Whole Fruit frozen fruit bars and sorbet, Philly Swirl cups and sticks, ICEE Squeeze-Up Tubes and dough enrobed handheld products including Patio burritos. The Frozen Beverages segment provides frozen beverages to the food service industry primarily under the names ICEE, SLUSH PUPPIE, and PARROT ICE in the United States, Mexico, and Canada, as well as repair and maintenance services. The company was founded by Gerald B. Shreiber in 1971 and is headquartered in Mount Laurel, NJ.