Financial Review: Mama’s Creations (NASDAQ:MAMA) vs. Campbell’s (NASDAQ:CPB)

Campbell’s (NASDAQ:CPB) and Mama’s Creations (NASDAQ:MAMA) are both consumer staples companies, but which is the better stock? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Campbell’s and Mama’s Creations, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Campbell’s	5	13	3	0	1.90
Mama’s Creations	0	1	3	1	3.00

Campbell’s presently has a consensus price target of $34.82, indicating a potential upside of 8.55%. Mama’s Creations has a consensus price target of $14.25, indicating a potential upside of 34.18%. Given Mama’s Creations’ stronger consensus rating and higher possible upside, analysts clearly believe Mama’s Creations is more favorable than Campbell’s.

Valuation and Earnings

This table compares Campbell’s and Mama’s Creations”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Campbell’s	$10.25 billion	0.93	$602.00 million	$2.00	16.04
Mama’s Creations	$123.33 million	3.49	$3.71 million	$0.11	96.55

Campbell’s has higher revenue and earnings than Mama’s Creations. Campbell’s is trading at a lower price-to-earnings ratio than Mama’s Creations, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Campbell’s has a beta of 0.05, suggesting that its share price is 95% less volatile than the S&P 500. Comparatively, Mama’s Creations has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500.

Profitability

This table compares Campbell’s and Mama’s Creations’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Campbell’s	5.87%	22.95%	5.77%
Mama’s Creations	3.34%	17.41%	9.10%

Insider & Institutional Ownership

52.4% of Campbell’s shares are owned by institutional investors. Comparatively, 45.2% of Mama’s Creations shares are owned by institutional investors. 20.2% of Campbell’s shares are owned by company insiders. Comparatively, 6.5% of Mama’s Creations shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

About Campbell’s

The Campbell’s Company, formerly known as Campbell Soup Company, together with its subsidiaries, manufactures and markets food and beverage products in the United States and internationally. The company operates through Meals & Beverages and Snacks segments. The Meals & Beverages segment engages in the retail and foodservice businesses in the United States and Canada. This segment provides Campbell’s condensed and ready-to-serve soups; Swanson broth and stocks; Pacific Foods broth, soups, and non-dairy beverages; Prego pasta sauces; Pace Mexican sauces; Campbell’s gravies, pasta, beans, and dinner sauces; Swanson canned poultry; V8 juices and beverages; Campbell’s tomato juice; and snacking products in foodservice in Canada. The Snacks segment retails Pepperidge Farm cookies, crackers, fresh bakery, and frozen products, which include Goldfish crackers, Snyder’s of Hanover pretzels, Lance sandwich crackers, Cape Cod and Kettle Brand potato chips, Late July snacks, Snack Factory pretzel crisps, Pop Secret popcorn, and other snacking products. This segment is also involved in the retail business in Latin America. It sells its products through retail food chains, mass discounters and merchandisers, club stores, convenience stores, drug stores, and dollar stores, as well as e-commerce and other retail, commercial, and non-commercial establishments, and independent contractor distributors. The company was founded in 1869 and is headquartered in Camden, New Jersey.

About Mama’s Creations

Mama’s Creations, Inc. engages in the marketing, manufacturing, and distribution of beef meatballs with sauce, turkey meatballs with sauce, beef meat loaf, sausage and peppers, chicken parmesan, and other similar meats and sauces. Its products include beef meatballs, turkey meatballs, stuffed meatballs, lasagna roll ups, retail ready meals, bulk deli, single-size pasta bowls, and packaged refrigerated products. Its brands include MamaMancini’s, Creative Salads, and The Olive Branch. The company was founded by Daniel Dougherty on July 22, 2009 and is headquartered in East Rutherford, NJ.