Reviewing Tofutti Brands (OTCMKTS:TOFB) & Seneca Foods (NASDAQ:SENEA)

Seneca Foods (NASDAQ:SENEA) and Tofutti Brands (OTCMKTS:TOFB) are both small-cap consumer staples companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.

Profitability

This table compares Seneca Foods and Tofutti Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Seneca Foods	3.73%	9.68%	5.03%
Tofutti Brands	-7.93%	-22.08%	-16.26%

Valuation and Earnings

This table compares Seneca Foods and Tofutti Brands”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Seneca Foods	$1.58 billion	0.50	$41.22 million	$8.62	13.42
Tofutti Brands	$8.82 million	0.48	-$860,000.00	($0.13)	-6.31

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

Insider and Institutional Ownership

42.5% of Seneca Foods shares are held by institutional investors. Comparatively, 5.1% of Tofutti Brands shares are held by institutional investors. 8.4% of Seneca Foods shares are held by insiders. Comparatively, 9.3% of Tofutti Brands shares are held 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.

Risk and Volatility

Seneca Foods has a beta of 0.13, meaning that its share price is 87% less volatile than the S&P 500. Comparatively, Tofutti Brands has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Seneca Foods and Tofutti Brands, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Seneca Foods	0	0	1	0	3.00
Tofutti Brands	0	0	0	0	0.00

Summary

Seneca Foods beats Tofutti Brands on 11 of the 13 factors compared between the two stocks.

About Seneca Foods

Seneca Foods Corporation provides packaged fruits and vegetables in the United States and internationally. The company offers canned, frozen, and jarred produce; jarred fruit; and snack chips and other food products under the private label, as well as under various national and regional brands that the company owns or licenses, including Seneca, Libby’s, Aunt Nellie’s, Cherryman, Green Valley, and READ. In addition, it packs canned and frozen vegetables under contract packing agreements. Further, the company engages in the sale of cans, ends, and seeds, as well as trucking and aircraft operations. It provides its products to grocery outlets, including supermarkets, mass merchandisers, limited assortment stores, club stores, and dollar stores; specialty retailers; and food service distributors, restaurant chains, industrial markets, other food packagers, and export customers in approximately 55 countries, as well as federal, state, and local governments for school and other feeding programs. Seneca Foods Corporation was incorporated in 1949 and is headquartered in Fairport, New York.

About Tofutti Brands

Tofutti Brands Inc. engages in the development, production, and marketing of plant based, dairy free vegan frozen desserts, cheeses, and other food products under the TOFUTTI brand in the United States, Europe, the Middle East, the Asia Pacific, and Africa. The company offers frozen desserts, including frozen sandwiches and chocolate wafers; ice cream sandwiches; dairy free vegan cheese products, such as cream cheese, sour cream, cheese slices, and dairy free ricotta cheese alternatives; spreads; and frozen food products. It sells its products through independent unaffiliated food brokers to distributors, as well as on a direct basis to retail chain accounts or to warehouse accounts that directly service chain accounts. Tofutti Brands, Inc. was founded in 1981 and is based in Cranford, New Jersey.