Where Food Comes From (OTCMKTS:WFCF) and Secureworks (NASDAQ:SCWX) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.
Institutional and Insider Ownership
0.4% of Where Food Comes From shares are held by institutional investors. Comparatively, 10.8% of Secureworks shares are held by institutional investors. 50.7% of Where Food Comes From shares are held by insiders. Comparatively, 87.5% of Secureworks shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares Where Food Comes From and Secureworks’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Where Food Comes From||4.50%||7.78%||5.51%|
Risk and Volatility
Where Food Comes From has a beta of 1.28, suggesting that its stock price is 28% more volatile than the S&P 500. Comparatively, Secureworks has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500.
This is a summary of current ratings and recommmendations for Where Food Comes From and Secureworks, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Where Food Comes From||0||0||0||0||N/A|
Secureworks has a consensus target price of $14.25, suggesting a potential downside of 25.55%. Given Secureworks’ higher probable upside, analysts plainly believe Secureworks is more favorable than Where Food Comes From.
Earnings and Valuation
This table compares Where Food Comes From and Secureworks’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Where Food Comes From||$17.80 million||2.88||$800,000.00||N/A||N/A|
|Secureworks||$518.71 million||3.00||-$39.10 million||($0.16)||-119.63|
Where Food Comes From has higher earnings, but lower revenue than Secureworks.
Where Food Comes From beats Secureworks on 6 of the 11 factors compared between the two stocks.
About Where Food Comes From
Where Food Comes From, Inc. provides verification and certification solutions for the agriculture, livestock, and food industries in the United States. It conducts on-site and desk audits to verify that claims made about livestock, crops, and other food products are accurate, as well as offers Where Food Comes From retail and restaurant labeling program, which connects consumers directly to the source of the food they purchase through product labeling, and Web-based information sharing and education. The company also sells hardware; and develops software and provides services related to sustainability measurement and benchmarking, traceability, verification, and certification to the food and agriculture industries. It serves beef and pork packers, organic producers and processors, and specialty retail chains. The company was formerly known as Integrated Management Information, Inc. and changed its name to Where Food Comes From, Inc. in December 2012. Where Food Comes From, Inc. was founded in 1996 and is headquartered in Castle Rock, Colorado.
SecureWorks Corp., through its subsidiaries, provides intelligence-driven information security solutions focused on protecting organizations from cyber-attacks. The company's solutions include managed security, threat intelligence, security and risk consulting, and incident response. Its solutions enable organizations to fortify their cyber defenses to prevent security breaches, detect malicious activity in real time, prioritize and respond to security incidents, and predict emerging threats. The company serves clients in a range of industries, including the financial, manufacturing, technology, retail, insurance, utility, and healthcare sectors. As of February 2, 2018, it served approximately 4,400 clients across 59 countries. The company was formerly known as SecureWorks Holding Corporation and changed its name to SecureWorks Corp. in November 2015. The company was founded in 1999 and is headquartered in Atlanta, Georgia. SecureWorks Corp. is a subsidiary of Dell Inc.
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