Critical Analysis: Farmer Brothers (NASDAQ:FARM) & Performance Food Group (NYSE:PFGC)

Performance Food Group (NYSE:PFGCGet Free Report) and Farmer Brothers (NASDAQ:FARMGet Free Report) are both retail/wholesale companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, dividends, earnings, risk and profitability.

Valuation and Earnings

This table compares Performance Food Group and Farmer Brothers”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Performance Food Group $58.28 billion 0.24 $435.90 million $2.40 37.03
Farmer Brothers $341.09 million 0.09 -$3.88 million ($0.68) -2.14

Performance Food Group has higher revenue and earnings than Farmer Brothers. Farmer Brothers is trading at a lower price-to-earnings ratio than Performance Food Group, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Performance Food Group has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500. Comparatively, Farmer Brothers has a beta of 1.46, meaning that its share price is 46% more volatile than the S&P 500.

Profitability

This table compares Performance Food Group and Farmer Brothers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Performance Food Group 0.61% 16.17% 4.41%
Farmer Brothers -4.20% -26.00% -6.06%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Performance Food Group and Farmer Brothers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Performance Food Group 0 4 9 1 2.79
Farmer Brothers 0 0 1 0 3.00

Performance Food Group currently has a consensus target price of $100.08, suggesting a potential upside of 12.61%. Farmer Brothers has a consensus target price of $4.50, suggesting a potential upside of 209.28%. Given Farmer Brothers’ stronger consensus rating and higher probable upside, analysts plainly believe Farmer Brothers is more favorable than Performance Food Group.

Institutional & Insider Ownership

96.9% of Performance Food Group shares are held by institutional investors. Comparatively, 64.5% of Farmer Brothers shares are held by institutional investors. 2.8% of Performance Food Group shares are held by insiders. Comparatively, 4.6% of Farmer Brothers shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Performance Food Group beats Farmer Brothers on 11 of the 15 factors compared between the two stocks.

About Performance Food Group

(Get Free Report)

Performance Food Group Company, through its subsidiaries, markets and distributes food and food-related products in the United States. It operates through three segments: Foodservice, Vistar, and Convenience. The company offers a range of frozen foods, groceries, candy, snacks, beverages, cigarettes, and other tobacco products; beef, pork, poultry, and seafood; and health and beauty care products. It also sells disposables, cleaning and kitchen supplies, and related products. In addition, the company offers value-added services, such as product selection and procurement, menu development, and operational strategy. It serves independent and chain restaurants, schools, business and industry locations, hospitals, vending distributors, office coffee service distributors, retailers, convenience stores, theaters, hospitality providers, concessionaires, airport gift shops, college bookstores, corrections facilities, and impulse locations, as well as franchises and other institutional customers. Performance Food Group Company was founded in 1885 and is headquartered in Richmond, Virginia.

About Farmer Brothers

(Get Free Report)

Farmer Bros. Co. engages in the roasting, wholesale, equipment servicing, and distribution of coffee, tea, and other allied products in the United States. The company offers roast and ground coffee; frozen liquid coffee; flavoured and unflavoured iced and hot teas; culinary products, including spices, pancake and biscuit mixes, gravy and sauce mixes, soup bases, dressings, and syrups and sauces, as well as coffee filters, cups, sugar, and creamers; and other beverages comprising cappuccino, cocoa, granitas, and other blender-based beverages and concentrated and ready-to-drink cold brew and iced coffee. It also engage installation, repair, and refurbishment services for an array of coffee, tea, and juice equipment. The company serves small independent restaurants, foodservice operators, and large institutional buyers and national account customers. The company distributes its products through direct-store-delivery network, and common carriers or third-party distributors, as well as website. The company was founded in 1912 and is headquartered in Northlake, Texas.

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