CIMG (NASDAQ:IMG) & MEDIFAST (NYSE:MED) Financial Review

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

Profitability

This table compares CIMG and MEDIFAST’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CIMG	N/A	N/A	N/A
MEDIFAST	0.76%	2.00%	1.50%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for CIMG and MEDIFAST, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CIMG	0	0	0	0	0.00
MEDIFAST	0	1	0	0	2.00

MEDIFAST has a consensus price target of $16.50, suggesting a potential upside of 28.63%. Given MEDIFAST’s stronger consensus rating and higher probable upside, analysts clearly believe MEDIFAST is more favorable than CIMG.

Institutional & Insider Ownership

23.4% of CIMG shares are held by institutional investors. Comparatively, 95.5% of MEDIFAST shares are held by institutional investors. 0.1% of CIMG shares are held by insiders. Comparatively, 2.9% of MEDIFAST 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.

Risk and Volatility

CIMG has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500. Comparatively, MEDIFAST has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500.

Earnings & Valuation

This table compares CIMG and MEDIFAST”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CIMG	$1.93 million	5.44	-$8.97 million	($7.37)	-0.04
MEDIFAST	$602.46 million	0.23	$2.09 million	$0.32	40.08

MEDIFAST has higher revenue and earnings than CIMG. CIMG is trading at a lower price-to-earnings ratio than MEDIFAST, indicating that it is currently the more affordable of the two stocks.

Summary

MEDIFAST beats CIMG on 11 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 MEDIFAST

Medifast, Inc., through its subsidiaries, engages in the manufacture and sale of weight loss, weight management, and healthy living products in the United States and the Asia-Pacific. It offers bars, puffs, cereal, crunchers, drinks, hearty choices, oatmeal, pancakes, pudding, soft serve, shakes, smoothies, soft bakes, and soups under the OPTAVIA, OPTAVIA ACTIVE, and Optimal Health brand names. The company markets its products through point-of-sale transactions, as well as through ecommerce platform. Medifast, Inc. was founded in 1980 and is headquartered in Baltimore, Maryland.