Critical Analysis: B&G Foods (NYSE:BGS) vs. CIMG (NASDAQ:IMG)

CIMG (NASDAQ:IMG) and B&G Foods (NYSE:BGS) are both small-cap consumer staples companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.

Profitability

This table compares CIMG and B&G Foods’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CIMG	N/A	-189.87%	-113.08%
B&G Foods	-13.61%	8.50%	1.44%

Volatility & Risk

CIMG has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500. Comparatively, B&G Foods has a beta of 0.48, meaning that its share price is 52% less volatile than the S&P 500.

Valuation & Earnings

This table compares CIMG and B&G Foods”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CIMG	$10.30 million	0.55	-$4.88 million	($4.00)	-0.15
B&G Foods	$1.93 billion	0.21	-$251.25 million	($3.16)	-1.63

CIMG has higher earnings, but lower revenue than B&G Foods. B&G Foods is trading at a lower price-to-earnings ratio than CIMG, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for CIMG and B&G Foods, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CIMG	1	0	0	0	1.00
B&G Foods	2	4	0	0	1.67

B&G Foods has a consensus price target of $4.38, suggesting a potential downside of 14.97%. Given B&G Foods’ stronger consensus rating and higher probable upside, analysts plainly believe B&G Foods is more favorable than CIMG.

Insider and Institutional Ownership

23.4% of CIMG shares are owned by institutional investors. Comparatively, 66.2% of B&G Foods shares are owned by institutional investors. 0.1% of CIMG shares are owned by company insiders. Comparatively, 3.2% of B&G Foods shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

B&G Foods beats CIMG on 8 of the 13 factors compared between the two stocks.

About CIMG

CIMG Inc. is a digital marketing, sales and distribution company for various consumer products with focuses on food and beverages. CIMG Inc., formerly known as NUZEE INC., is based in BEIJING.

About B&G Foods

B&G Foods, Inc. is a holding company, which engages in the manufacture, sale, and distribution of shelf-stable frozen food, and household products in the U.S., Canada, and Puerto Rico. It operates through the following segments: Specialty, Meals, Frozen & Vegetables, and Spices & Flavor Solutions. The Specialty segment includes, among others, the Crisco, Clabber Girl, Bear Creek, Polaner, Underwood, B&G, Grandma’s, New York Style, Don Pepino, Sclafani, B&M, Baker’s Joy, Regina, TrueNorth, Static Guard, SugarTwin and Brer Rabbit brands. The Meals segment focuses on the Ortega, Maple Grove Farms, Cream of Wheat, Las Palmas, Victoria, Mama Mary’s, Spring Tree, McCann’s, Carey’s and Vermont Maid brands. The Frozen & Vegetables segment consists of Green Giant and Le Sueur brands. The Spices & Flavor Solutions segment offers Dash, Spice Islands, Weber, Ac’cent, Tone’s, Trappey’s, Durkee and Wright’s brands. Its products include frozen and canned vegetables, hot cereals, fruit spreads, canned meats and beans, bagel chips, spices, seasonings, hot sauces, and wine vinegar. Its brands include Back to Nature, Bear Creek, Cream of Wheat, Green Giant, Mrs. Dash, and Ortega. The company was founded in 1889 and is headquartered in Parsippany, NJ.