Marzetti (NASDAQ:MZTI) and Freshpet (NASDAQ:FRPT) Head to Head Comparison

Marzetti (NASDAQ:MZTI) and Freshpet (NASDAQ:FRPT) are both mid-cap consumer staples companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, earnings, risk, institutional ownership and valuation.

Profitability

This table compares Marzetti and Freshpet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Marzetti	8.99%	19.30%	15.03%
Freshpet	3.23%	4.82%	3.21%

Risk and Volatility

Marzetti has a beta of 0.47, suggesting that its stock price is 53% less volatile than the S&P 500. Comparatively, Freshpet has a beta of 1.77, suggesting that its stock price is 77% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for Marzetti and Freshpet, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Marzetti	0	2	2	0	2.50
Freshpet	1	5	8	0	2.50

Marzetti currently has a consensus price target of $203.50, suggesting a potential upside of 11.17%. Freshpet has a consensus price target of $110.3571, suggesting a potential upside of 71.84%. Given Freshpet’s higher possible upside, analysts clearly believe Freshpet is more favorable than Marzetti.

Institutional and Insider Ownership

66.4% of Marzetti shares are held by institutional investors. 29.5% of Marzetti shares are held by company insiders. Comparatively, 4.4% of Freshpet shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Marzetti and Freshpet”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Marzetti	$1.87 billion	2.70	$158.61 million	$6.15	29.76
Freshpet	$975.18 million	3.21	$46.92 million	$0.67	95.85

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

Summary

Marzetti beats Freshpet on 8 of the 13 factors compared between the two stocks.

About Marzetti

Lancaster Colony Corporation engages in the manufacturing and marketing of specialty food products for the retail and foodservice channels in the United States. It operates in two segments, Retail and Foodservice. The company offers frozen garlic bread under the New York BRAND Bakery; frozen Parkerhouse style yeast and dinner rolls under the Sister Schubert's brand; salad dressings under the Marzetti, Simply Dressed, Cardini's, and Girard's brands; vegetable and fruit dips under the Marzetti brand; croutons and salad toppings under the New York BRAND Bakery, Chatham Village, and Marzetti brands; and frozen pasta under the Marzetti Frozen Pasta brand. It also manufactures and sells other products to brand license agreements, including Olive Garden dressings, Buffalo Wild Wings sauces, and Chick-fil-A sauces. The company sells its products through sales personnel, food brokers, and distributors to retailers and restaurants. Lancaster Colony Corporation was incorporated in 1961 and is based in Westerville, Ohio.

About Freshpet

Freshpet, Inc., together with its subsidiaries, manufactures, distributes, and markets natural fresh meals and treats for dogs and cats in the United States, Canada, and Europe. It sells dog food, cat food, and dog treats under the Freshpet brand name; and Dognation and Dog Joy labels through various classes of retail, including grocery, mass, club, pet specialty, and natural, as well as online. The company was incorporated in 2004 and is headquartered in Secaucus, New Jersey.