Critical Comparison: GLG Life Tech (OTCMKTS:GLGLF) versus Freshpet (NASDAQ:FRPT)

GLG Life Tech (OTCMKTS:GLGLF) and Freshpet (NASDAQ:FRPT) are both consumer staples companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, dividends, risk, profitability, institutional ownership, valuation and analyst recommendations.

Analyst Ratings

This is a breakdown of recent ratings and target prices for GLG Life Tech and Freshpet, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GLG Life Tech	0	0	0	0	0.00
Freshpet	1	7	10	0	2.50

Freshpet has a consensus target price of $76.44, suggesting a potential upside of 17.33%. Given Freshpet’s stronger consensus rating and higher probable upside, analysts clearly believe Freshpet is more favorable than GLG Life Tech.

Earnings & Valuation

This table compares GLG Life Tech and Freshpet”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GLG Life Tech	$10.62 million	0.00	$48.29 million	$0.23	N/A
Freshpet	$1.10 billion	2.91	$139.14 million	$2.57	25.35

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

Volatility & Risk

GLG Life Tech has a beta of 2.1, indicating that its share price is 110% more volatile than the S&P 500. Comparatively, Freshpet has a beta of 1.78, indicating that its share price is 78% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GLG Life Tech	105.86%	N/A	-91.56%
Freshpet	12.63%	6.93%	4.64%

Summary

Freshpet beats GLG Life Tech on 8 of the 10 factors compared between the two stocks.

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.

About Freshpet

Freshpet, Inc., together with its subsidiaries, manufactures, distributes, and markets natural fresh meals and treats for dogs and cats in the United States, Canada, and Europe. It sells dog food, cat food, and dog treats under the Freshpet brand name; and Dognation and Dog Joy labels through various classes of retail, including grocery, mass, club, pet specialty, and natural, as well as online. The company was incorporated in 2004 and is headquartered in Secaucus, New Jersey.