Head-To-Head Review: Village Farms International (NASDAQ:VFF) & Kraft Heinz (NASDAQ:KHC)

Kraft Heinz (NASDAQ:KHC) and Village Farms International (NASDAQ:VFF) are both consumer staples companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, valuation, risk, dividends, analyst recommendations and institutional ownership.

Risk and Volatility

Kraft Heinz has a beta of 0.12, indicating that its stock price is 88% less volatile than the S&P 500. Comparatively, Village Farms International has a beta of 1.34, indicating that its stock price is 34% more volatile than the S&P 500.

Earnings & Valuation

This table compares Kraft Heinz and Village Farms International”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kraft Heinz	$24.90 billion	1.05	-$5.85 billion	($2.86)	-7.69
Village Farms International	$215.94 million	1.52	$32.44 million	$0.17	15.76

Village Farms International has lower revenue, but higher earnings than Kraft Heinz. Kraft Heinz is trading at a lower price-to-earnings ratio than Village Farms International, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Kraft Heinz and Village Farms International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kraft Heinz	-13.64%	7.10%	3.60%
Village Farms International	9.85%	7.62%	5.48%

Insider and Institutional Ownership

78.2% of Kraft Heinz shares are held by institutional investors. Comparatively, 12.1% of Village Farms International shares are held by institutional investors. 0.2% of Kraft Heinz shares are held by company insiders. Comparatively, 13.2% of Village Farms International shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations for Kraft Heinz and Village Farms International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kraft Heinz	5	11	1	0	1.76
Village Farms International	0	2	0	0	2.00

Kraft Heinz presently has a consensus target price of $23.75, suggesting a potential upside of 8.01%. Given Kraft Heinz’s higher probable upside, equities analysts plainly believe Kraft Heinz is more favorable than Village Farms International.

Summary

Village Farms International beats Kraft Heinz on 10 of the 14 factors compared between the two stocks.

About Kraft Heinz

The Kraft Heinz Company, together with its subsidiaries, manufactures and markets food and beverage products in North America and internationally. Its products include condiments and sauces, cheese and dairy products, meals, meats, refreshment beverages, coffee, and other grocery products under the Kraft, Oscar Mayer, Heinz, Philadelphia, Lunchables, Velveeta, Ore-Ida, Maxwell House, Kool-Aid, Jell-O, Heinz, ABC, Master, Quero, Kraft, Golden Circle, Wattie's, Pudliszki, and Plasmon brands. It sells its products through its own sales organizations, as well as through independent brokers, agents, and distributors to chain, wholesale, cooperative, and independent grocery accounts; convenience, value, and club stores; pharmacies and drug stores; mass merchants; foodservice distributors; institutions, including hotels, restaurants, bakeries, hospitals, health care facilities, and government agencies; and online through various e-commerce platforms and retailers. The company was formerly known as H.J. Heinz Holding Corporation and changed its name to The Kraft Heinz Company in July 2015. The Kraft Heinz Company was founded in 1869 and is based in Pittsburgh, Pennsylvania.

About Village Farms International

Village Farms International, Inc., together with its subsidiaries, produces, markets, and sells greenhouse-grown tomatoes, bell peppers, and cucumbers in North America. It operates through four segments: Produce, Cannabis-Canada, Cannabis-U.S., and Energy. The company also produces and supplies cannabis products to other licensed providers and provincial governments in Canada and internationally; develops and sells cannabinoid-based health and wellness products, including ingestible, edibles, and topical applications; and produces power. It markets and distributes its products under the Village Farms brand name to retail supermarkets and fresh food distribution companies, as well as products produced under exclusive and non-exclusive arrangements from greenhouse supply partners. The company was formerly known as Village Farms Canada Inc. and changed its name to Village Farms International, Inc. in December 2009. Village Farms International, Inc. was founded in 1989 and is headquartered in Delta, Canada.