Comparing Coffee (JVA) & The Competition

Volatility & Risk

Coffee has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500. Comparatively, Coffee’s rivals have a beta of 0.82, suggesting that their average share price is 18% less volatile than the S&P 500.

Institutional & Insider Ownership

48.6% of shares of all “BEVERAGES – SOFT” companies are owned by institutional investors. 21.6% of Coffee shares are owned by insiders. Comparatively, 22.7% of shares of all “BEVERAGES – SOFT” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

Coffee pays an annual dividend of $0.24 per share and has a dividend yield of 5.1%. Coffee pays out 37.5% of its earnings in the form of a dividend. As a group, “BEVERAGES – SOFT” companies pay a dividend yield of 2.9% and pay out 57.4% of their earnings in the form of a dividend. Coffee is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Profitability

This table compares Coffee and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Coffee	4.35%	13.87%	10.11%
Coffee Competitors	1.97%	-4.92%	-0.88%

Valuation & Earnings

This table compares Coffee and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Coffee	$84.65 million	$2.22 million	7.38
Coffee Competitors	$56.97 billion	$1.30 billion	-3.88

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

Summary

Coffee beats its rivals on 7 of the 11 factors compared.

Coffee Company Profile

Coffee Holding Co., Inc. engages in manufacturing, roasting, packaging, marketing, and distributing roasted and blended coffees in the United States, Australia, Canada, England, and China. It offers wholesale green coffee products, including unroasted raw beans that are sold to large, medium, and small roasters, as well as coffee shop operators; and roasts, blends, packages, and sells coffee under private labels in cans, brick packages, and instants of various sizes. The company also roasts and blends company label branded coffee to supermarkets, wholesalers, and individually owned stores; and sells tabletop coffee roasting equipment, instant coffees, and tea products for its customers. Its coffee brands include Cafe Caribe, Don Manuel, S&W, Cafe Supremo, Via Roma, Premier Roasters, and Harmony Bay. The company was formerly known as Transpacific International Group Corp and changed its name to Coffee Holding Co., Inc. in April 1998. Coffee Holding Co., Inc. was founded in 1971 and is headquartered in Staten Island, New York.