Head to Head Comparison: Lamb Weston (NYSE:LW) and CIMG (NASDAQ:IMG)

CIMG (NASDAQ:IMG) and Lamb Weston (NYSE:LW) are both consumer staples companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, dividends, profitability, institutional ownership and valuation.

Volatility and Risk

CIMG has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500. Comparatively, Lamb Weston has a beta of 0.47, indicating that its stock price is 53% less volatile than the S&P 500.

Valuation & Earnings

This table compares CIMG and Lamb Weston”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CIMG	$10.30 million	0.21	-$4.88 million	($4.00)	-0.06
Lamb Weston	$6.45 billion	1.00	$357.20 million	$2.14	21.84

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

Profitability

This table compares CIMG and Lamb Weston’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CIMG	N/A	-23.59%	-15.90%
Lamb Weston	4.61%	23.77%	5.76%

Insider & Institutional Ownership

23.4% of CIMG shares are owned by institutional investors. Comparatively, 89.6% of Lamb Weston shares are owned by institutional investors. 0.1% of CIMG shares are owned by company insiders. Comparatively, 0.3% of Lamb Weston shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for CIMG and Lamb Weston, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CIMG	1	0	0	0	1.00
Lamb Weston	1	10	3	0	2.14

Lamb Weston has a consensus target price of $48.91, indicating a potential upside of 4.64%. Given Lamb Weston’s stronger consensus rating and higher possible upside, analysts plainly believe Lamb Weston is more favorable than CIMG.

Summary

Lamb Weston beats CIMG on 13 of the 14 factors compared between the two stocks.

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.

About Lamb Weston

Lamb Weston Holdings, Inc. produces, distributes, and markets frozen potato products worldwide. The company operates through four segments: Global, Foodservice, Retail, and Other. It offers frozen potatoes, commercial ingredients, and appetizers under the Lamb Weston brand, as well as under various customer labels. The company also provides its products under its owned or licensed brands, such as Grown in Idaho and Alexia, and other licensed brands, as well as under retailers' own brands. In addition, it engages in the vegetable and dairy businesses. The company sells its products through a network of internal sales personnel and independent brokers, agents, and distributors to chain restaurants, wholesale, grocery, mass merchants, club and specialty retailers, businesses, educational institutions, independent restaurants, regional chain restaurants, and convenience stores. Lamb Weston Holdings, Inc. was incorporated in 1950 and is headquartered in Eagle, Idaho.