Contrasting Tofutti Brands (OTCMKTS:TOFB) and The Hain Celestial Group (NASDAQ:HAIN)

The Hain Celestial Group (NASDAQ:HAIN) and Tofutti Brands (OTCMKTS:TOFB) are both small-cap consumer staples companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, institutional ownership, valuation, risk and dividends.

Institutional & Insider Ownership

97.0% of The Hain Celestial Group shares are held by institutional investors. Comparatively, 5.0% of Tofutti Brands shares are held by institutional investors. 1.7% of The Hain Celestial Group shares are held by company insiders. Comparatively, 9.3% of Tofutti Brands shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares The Hain Celestial Group and Tofutti Brands”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The Hain Celestial Group	$1.56 billion	0.04	-$530.84 million	($5.74)	-0.13
Tofutti Brands	$7.78 million	0.32	-$780,000.00	($0.19)	-2.51

Tofutti Brands has lower revenue, but higher earnings than The Hain Celestial Group. Tofutti Brands is trading at a lower price-to-earnings ratio than The Hain Celestial Group, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for The Hain Celestial Group and Tofutti Brands, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The Hain Celestial Group	2	6	0	0	1.75
Tofutti Brands	0	0	0	0	0.00

The Hain Celestial Group currently has a consensus price target of $1.06, suggesting a potential upside of 42.53%. Given The Hain Celestial Group’s stronger consensus rating and higher probable upside, research analysts plainly believe The Hain Celestial Group is more favorable than Tofutti Brands.

Volatility and Risk

The Hain Celestial Group has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500. Comparatively, Tofutti Brands has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500.

Profitability

This table compares The Hain Celestial Group and Tofutti Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
The Hain Celestial Group	-35.47%	-3.52%	-0.89%
Tofutti Brands	-13.09%	-45.27%	-29.44%

Summary

The Hain Celestial Group beats Tofutti Brands on 8 of the 13 factors compared between the two stocks.

About The Hain Celestial Group

The Hain Celestial Group, Inc. manufactures, markets, and sells organic and natural products in United States, United Kingdom, Europe, and internationally. It operates through two segments: North America and International. The company offers infant formula; infant, toddler, and kids' food; plant-based beverages and frozen desserts, such as soy, rice, oat, and spelt; and condiments. It also provides cooking and culinary oils; cereal bars; fresh and aseptic soups; yogurts; and nut butters. In addition, the company offers hot-eating desserts, refrigerated and frozen plant-based meat-alternative products, jams, fruit spreads, jellies, honey, natural sweeteners, syrups, dessert sauces, and marmalade products, as well as other food products. Further, it provides snack products comprising potato, root vegetable and other exotic vegetable chips, straws, tortilla chips; and personal care products that include hand, skin, hair, and oral care products, as well as deodorants, baby food, sunscreens, and other products under the Alba Botanica, Avalon Organics, Earth's Best, JASON, Live Clean, and Queen Helene brands name. Additionally, the company offers herbal, green, black, wellness, rooibos, and chai tea under the Celestial Seasonings brand. It sells pantry products under the Spectrum, Spectrum Essentials, MaraNatha, Imagine broths, Hain Pure Foods, Health Valley, and Hollywood brands. It sells its products through specialty and natural food distributors, supermarkets, natural food stores, mass-market and e-commerce retailers, food service channels and clubs, and drug and convenience stores. The company was incorporated in 1993 and is headquartered in Hoboken, New Jersey.

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.