Contrasting Fresh Del Monte Produce (NYSE:FDP) and Freshpet (NASDAQ:FRPT)

Freshpet (NASDAQ:FRPT) and Fresh Del Monte Produce (NYSE:FDP) are both consumer staples companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, dividends, valuation, earnings and profitability.

Profitability

This table compares Freshpet and Fresh Del Monte Produce’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Freshpet	17.28%	5.97%	4.07%
Fresh Del Monte Produce	1.63%	7.61%	4.89%

Earnings and Valuation

This table compares Freshpet and Fresh Del Monte Produce”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Freshpet	$1.10 billion	2.68	$139.14 million	$3.80	15.82
Fresh Del Monte Produce	$4.27 billion	0.35	$90.70 million	$1.45	21.42

Freshpet has higher earnings, but lower revenue than Fresh Del Monte Produce. Freshpet is trading at a lower price-to-earnings ratio than Fresh Del Monte Produce, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

64.8% of Fresh Del Monte Produce shares are held by institutional investors. 4.3% of Freshpet shares are held by company insiders. Comparatively, 30.6% of Fresh Del Monte Produce shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Freshpet and Fresh Del Monte Produce, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Freshpet	1	7	10	0	2.50
Fresh Del Monte Produce	0	1	0	0	2.00

Freshpet currently has a consensus price target of $75.31, indicating a potential upside of 25.25%. Given Freshpet’s stronger consensus rating and higher probable upside, analysts clearly believe Freshpet is more favorable than Fresh Del Monte Produce.

Risk & Volatility

Freshpet has a beta of 1.66, meaning that its stock price is 66% more volatile than the S&P 500. Comparatively, Fresh Del Monte Produce has a beta of 0.22, meaning that its stock price is 78% less volatile than the S&P 500.

Summary

Freshpet beats Fresh Del Monte Produce on 8 of the 14 factors compared between the two stocks.

About Freshpet

Freshpet, Inc., together with its subsidiaries, manufactures, distributes, and markets natural fresh meals and treats for dogs and cats in the United States, Canada, and Europe. It sells dog food, cat food, and dog treats under the Freshpet brand name; and Dognation and Dog Joy labels through various classes of retail, including grocery, mass, club, pet specialty, and natural, as well as online. The company was incorporated in 2004 and is headquartered in Secaucus, New Jersey.

About Fresh Del Monte Produce

Fresh Del Monte Produce Inc., through its subsidiaries, produces, markets, and distributes fresh and fresh-cut fruits and vegetables in North America, Central America, South America, Europe, the Middle East, Africa, Asia, and internationally. It operates through three segments: Fresh and Value-Added Products, Banana, and Other Products and Services. The company offers pineapples, fresh-cut fruit, fresh-cut vegetables, melons, and vegetables; non-tropical fruits, such as grapes, apples, citrus, blueberries, strawberries, pears, peaches, plums, nectarines, cherries, and kiwis; other fruit and vegetables, and avocados; and prepared fruit and vegetables, juices, other beverages, and meals and snacks. It also engages in the sale of poultry and meat products; and third-party freight services business. The company offers its products under the Del Monte brand, as well as under other brands, such as UTC, Rosy, Just Juice, Fruitini, Pinkglow, Del Monte Zero, Honeyglow, Rubyglow, Honey Miniglow, Bananinis, Mann, Mann’s Logo, Arcadian Harvest, Nourish Bowls, Broccolini, Caulilini, Better Burger Leaf, Romaleaf, and other regional brands. It markets and distributes its products to retail stores, club stores, convenience stores, wholesalers, distributors, and foodservice operators. Fresh Del Monte Produce Inc. was founded in 1886 and is based in George Town, Cayman Islands.