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

Insider and Institutional Ownership

84.8% of Dean Foods shares are owned by institutional investors. 1.2% of Dean Foods shares are owned by company insiders. Comparatively, 58.8% of Tofutti Brands shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Dean Foods and Tofutti Brands’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dean Foods $7.80 billion 0.07 $61.58 million $0.80 7.04
Tofutti Brands $14.11 million 0.87 $700,000.00 N/A N/A

Dean Foods has higher revenue and earnings than Tofutti Brands.

Profitability

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

Net Margins Return on Equity Return on Assets
Dean Foods -0.19% 4.01% 1.04%
Tofutti Brands 4.35% 17.26% 12.36%

Volatility and Risk

Dean Foods has a beta of 0.02, indicating that its stock price is 98% less volatile than the S&P 500. Comparatively, Tofutti Brands has a beta of 1.41, indicating that its stock price is 41% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Dean Foods and Tofutti Brands, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dean Foods 3 7 0 0 1.70
Tofutti Brands 0 0 0 0 N/A

Dean Foods presently has a consensus target price of $7.13, indicating a potential upside of 26.11%. Given Dean Foods’ higher probable upside, equities research analysts plainly believe Dean Foods is more favorable than Tofutti Brands.

Dividends

Dean Foods pays an annual dividend of $0.12 per share and has a dividend yield of 2.1%. Tofutti Brands does not pay a dividend. Dean Foods pays out 15.0% of its earnings in the form of a dividend.

Summary

Tofutti Brands beats Dean Foods on 8 of the 13 factors compared between the two stocks.

About Dean Foods

Dean Foods Company, a food and beverage company, processes and distributes milk, and other dairy and dairy case products in the United States. The company manufactures, markets, and distributes various branded and private label dairy, and diary case products, such as fluid milk, ice creams, cultured dairy products, creamers, ice cream mixes, and other dairy products; and juices, teas, bottled water, and other products. It sells its products under approximately 50 national, regional, and local proprietary or licensed brands, and private labels, including DairyPure, TruMoo, Alta Dena, Berkeley Farms, Country Fresh, Dean's, Friendly's, Garelick Farms, LAND O LAKES, Lehigh Valley Dairy Farms, Mayfield, McArthur, Meadow Gold, Oak Farms, PET, T.G. Lee, Tuscan, and others. The company sells its products to retailers, distributors, foodservice outlets, educational institutions, and governmental entities through its sales forces. Dean Foods Company was founded in 1925 and is headquartered in Dallas, Texas.

About Tofutti Brands

Tofutti Brands, Inc. engages in the development, production, and marketing of TOFUTTI branded dairy free frozen desserts and other food products in the United States and internationally. It offers frozen desserts, including frozen sandwiches and chocolate-coated crispy cones; dairy free vegan cheese products, such as cream cheese, sour cream, cheese slices, and dairy free ricotta cheese alternatives; spreads; and frozen food products comprising frozen crepes. The company 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.

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