Financial Analysis: CIMG (NASDAQ:IMG) and Flowers Foods (NYSE:FLO)

Flowers Foods (NYSE:FLO) and CIMG (NASDAQ:IMG) are both small-cap consumer staples companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, earnings, risk, dividends and valuation.

Volatility and Risk

Flowers Foods has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500. Comparatively, CIMG has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500.

Earnings & Valuation

This table compares Flowers Foods and CIMG”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Flowers Foods	$5.26 billion	0.33	$83.82 million	$0.40	20.34
CIMG	$10.30 million	0.04	-$4.88 million	($4.00)	-0.01

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Flowers Foods and CIMG, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flowers Foods	2	4	0	0	1.67
CIMG	1	0	0	0	1.00

Flowers Foods currently has a consensus target price of $11.80, indicating a potential upside of 45.05%. Given Flowers Foods’ stronger consensus rating and higher probable upside, analysts clearly believe Flowers Foods is more favorable than CIMG.

Institutional and Insider Ownership

75.5% of Flowers Foods shares are held by institutional investors. Comparatively, 23.4% of CIMG shares are held by institutional investors. 11.6% of Flowers Foods shares are held by company insiders. Comparatively, 0.1% of CIMG shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Flowers Foods and CIMG’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Flowers Foods	1.59%	16.61%	5.38%
CIMG	N/A	-23.59%	-15.90%

Summary

Flowers Foods beats CIMG on 12 of the 13 factors compared between the two stocks.

About Flowers Foods

Flowers Foods, Inc. produces and markets packaged bakery food products in the United States. Its principal products include fresh breads, buns, rolls, snack items, bagels, English muffins, and tortillas, as well as frozen breads and rolls under the Nature's Own, Dave's Killer Bread, Wonder, Canyon Bakehouse, Mrs. Freshley's, and Tastykake brand names. The company distributes its products through a direct-store-delivery distribution and a warehouse delivery system, as well as operates bakeries. Its customers include national and regional restaurants, institutions and foodservice distributors, and retail in-store bakeries; wholesale distributors; mass merchandisers, supermarkets, vending outlets, and convenience stores; quick-serve chains, food wholesalers, institutions, dollar stores, and vending companies; and public health care, military commissaries, and prisons, and other governmental institutions. The company was formerly known as Flowers Industries and changed its name to Flowers Foods, Inc. in 2001. Flowers Foods, Inc. was founded in 1919 and is headquartered in Thomasville, Georgia.

About CIMG

CIMG Inc. is a digital marketing, sales and distribution company for various consumer products with focuses on food and beverages. CIMG Inc., formerly known as NUZEE INC., is based in BEIJING.