Above Food Ingredients (NASDAQ:ABVE) & US Foods (NYSE:USFD) Critical Review

Above Food Ingredients (NASDAQ:ABVE) and US Foods (NYSE:USFD) are both consumer staples companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, earnings, institutional ownership, profitability, risk, dividends and analyst recommendations.

Profitability

This table compares Above Food Ingredients and US Foods’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Above Food Ingredients	N/A	N/A	N/A
US Foods	1.43%	16.86%	5.70%

Insider and Institutional Ownership

28.8% of Above Food Ingredients shares are held by institutional investors. Comparatively, 98.8% of US Foods shares are held by institutional investors. 64.5% of Above Food Ingredients shares are held by insiders. Comparatively, 0.6% of US Foods shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Above Food Ingredients and US Foods”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Above Food Ingredients	$273.06 million	0.18	-$39.49 million	N/A	N/A
US Foods	$37.88 billion	0.45	$494.00 million	$2.34	32.69

US Foods has higher revenue and earnings than Above Food Ingredients.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Above Food Ingredients and US Foods, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Above Food Ingredients	0	0	0	0	0.00
US Foods	0	1	9	2	3.08

US Foods has a consensus target price of $81.27, suggesting a potential upside of 6.23%. Given US Foods’ stronger consensus rating and higher possible upside, analysts clearly believe US Foods is more favorable than Above Food Ingredients.

Volatility & Risk

Above Food Ingredients has a beta of -0.23, suggesting that its share price is 123% less volatile than the S&P 500. Comparatively, US Foods has a beta of 1.39, suggesting that its share price is 39% more volatile than the S&P 500.

Summary

US Foods beats Above Food Ingredients on 12 of the 13 factors compared between the two stocks.

About Above Food Ingredients

Above Food Ingredients Inc., a regenerative ingredient company, produces vertically integrated supply chain products in Canada, the United States, Mexico, China, France, Turkey, and internationally. It operates through two segments: Disruptive Agriculture and Rudimentary Ingredients, and Consumer Packaged Goods. The Disruptive Agriculture and Rudimentary Ingredients segment engages in the provisioning of discrete genetics, origination, purchasing, grading, processing, and sale of regeneratively grown grain; and origination, purchase, and sale of bespoke ingredients products. The Consumer Packaged Goods segment formulates, manufactures, sells, distributes, and markets proprietary consumer product formulations in owned brands; and focuses on manufacturing and distribution for private-labeled retail owned brands. Above Food Ingredients Inc. is based in Regina, Canada.

About US Foods

US Foods Holding Corp., together with its subsidiaries, engages in marketing, sale, and distribution of fresh, frozen, and dry food and non-food products to foodservice customers in the United States. The company's customers include independently owned single and multi-unit restaurants, regional concepts, national restaurant chains, hospitals, nursing homes, hotels and motels, country clubs, government and military organizations, colleges and universities, and retail locations. The company was formerly known as USF Holding Corp. and changed its name to US Foods Holding Corp. in February 2016. US Foods Holding Corp. was incorporated in 2007 and is headquartered in Rosemont, Illinois.