Nomad Foods (NYSE:NOMD) and GLG Life Tech (OTCMKTS:GLGLF) Critical Comparison

Nomad Foods (NYSE:NOMD) and GLG Life Tech (OTCMKTS:GLGLF) are both small-cap consumer staples companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, dividends, risk, profitability and earnings.

Volatility and Risk

Nomad Foods has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500. Comparatively, GLG Life Tech has a beta of 2.21, indicating that its share price is 121% more volatile than the S&P 500.

Profitability

This table compares Nomad Foods and GLG Life Tech’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nomad Foods	6.56%	9.73%	3.96%
GLG Life Tech	105.86%	N/A	-74.39%

Insider and Institutional Ownership

75.3% of Nomad Foods shares are held by institutional investors. 17.3% of Nomad Foods shares are held by company 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.

Earnings & Valuation

This table compares Nomad Foods and GLG Life Tech”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nomad Foods	$3.05 billion	0.63	$245.74 million	$1.44	8.68
GLG Life Tech	$10.62 million	0.00	$48.29 million	$0.23	0.00

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

Analyst Ratings

This is a summary of current ratings and price targets for Nomad Foods and GLG Life Tech, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nomad Foods	1	1	3	0	2.40
GLG Life Tech	0	0	0	0	0.00

Nomad Foods presently has a consensus price target of $18.67, indicating a potential upside of 49.27%. Given Nomad Foods’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Nomad Foods is more favorable than GLG Life Tech.

Summary

Nomad Foods beats GLG Life Tech on 12 of the 14 factors compared between the two stocks.

About Nomad Foods

Nomad Foods Limited, together with its subsidiaries, manufactures, markets, and distributes a range of frozen food products in the United Kingdom and internationally. The company offers frozen fish products, including fish fingers, coated fish, and natural fish; ready-to-cook vegetable products, such as peas and spinach; and frozen poultry and meat products comprising nuggets, grills, and burgers. It also provides meal products that include ready-to-cook noodles, pasta, lasagna, pancakes, and other ready-made meals; ice creams, such as in-home and out-of-home ice creams; and other products consisting of soups, pizzas, bakery goods, and meat substitutes. The company sells its products to supermarkets and food retail chains primarily under the Birds Eye, Green Cuisine, iglo, Findus, Aunt Bessie's, Goodfella's, Frikom, Ledo, La Cocinera, and Belviva brand names. Nomad Foods Limited was founded in 2014 and is headquartered in Feltham, the United Kingdom.

About GLG Life Tech

GLG Life Tech Corporation researches for, develops, grows, refines, and produces natural sweeteners extracted from the stevia plant and monk fruit in Canada and internationally. It also offers P-Pro Plus, a pea protein product; REB M GOLD, a bioconverted Rebaudioside M and Rebaudioside D. sweetener; and natural ingredients. It serves in the food and beverage industry. The company was formerly known as GLG Life Tech Limited and changed its name to GLG Life Tech Corporation in March 2007. GLG Life Tech Corporation was incorporated in 1998 and is headquartered in Richmond, Canada.