Tofutti Brands (OTCMKTS:TOFB) & Kraft Heinz (NASDAQ:KHC) Critical Analysis

Tofutti Brands (OTCMKTS:TOFB) and Kraft Heinz (NASDAQ:KHC) are both consumer staples companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.

Risk & Volatility

Tofutti Brands has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500. Comparatively, Kraft Heinz has a beta of 0.06, indicating that its share price is 94% less volatile than the S&P 500.

Insider and Institutional Ownership

5.1% of Tofutti Brands shares are owned by institutional investors. Comparatively, 78.2% of Kraft Heinz shares are owned by institutional investors. 9.3% of Tofutti Brands shares are owned by insiders. Comparatively, 0.2% of Kraft Heinz shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Tofutti Brands and Kraft Heinz’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tofutti Brands	-11.25%	-36.07%	-24.39%
Kraft Heinz	-23.05%	7.26%	3.70%

Earnings & Valuation

This table compares Tofutti Brands and Kraft Heinz”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tofutti Brands	$7.78 million	0.41	-$780,000.00	($0.17)	-3.65
Kraft Heinz	$24.94 billion	1.13	-$5.85 billion	($4.86)	-4.90

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

Analyst Ratings

This is a breakdown of current ratings and price targets for Tofutti Brands and Kraft Heinz, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tofutti Brands	0	0	0	0	0.00
Kraft Heinz	4	15	0	1	1.90

Kraft Heinz has a consensus price target of $23.06, suggesting a potential downside of 3.06%. Given Kraft Heinz’s stronger consensus rating and higher possible upside, analysts plainly believe Kraft Heinz is more favorable than Tofutti Brands.

Summary

Kraft Heinz beats Tofutti Brands on 8 of the 14 factors compared between the two stocks.

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.

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.