Contrasting Zevia PBC (NYSE:ZVIA) & Coffee (NASDAQ:JVA)

Coffee (NASDAQ:JVA) and Zevia PBC (NYSE:ZVIA) are both small-cap consumer staples companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Insider and Institutional Ownership

53.2% of Zevia PBC shares are owned by institutional investors. 22.1% of Coffee shares are owned by insiders. Comparatively, 11.1% of Zevia PBC shares are owned by 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.

Risk and Volatility

Coffee has a beta of 1.45, indicating that its stock price is 45% more volatile than the S&P 500. Comparatively, Zevia PBC has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Coffee and Zevia PBC, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Coffee	1	0	0	0	1.00
Zevia PBC	1	3	2	0	2.17

Zevia PBC has a consensus target price of $4.61, indicating a potential upside of 79.82%. Given Zevia PBC’s stronger consensus rating and higher probable upside, analysts clearly believe Zevia PBC is more favorable than Coffee.

Profitability

This table compares Coffee and Zevia PBC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Coffee	2.06%	6.84%	4.67%
Zevia PBC	-8.83%	-30.61%	-18.65%

Valuation and Earnings

This table compares Coffee and Zevia PBC”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Coffee	$89.75 million	0.25	$2.22 million	$0.32	12.05
Zevia PBC	$155.05 million	1.24	-$20.00 million	($0.22)	-11.66

Coffee has higher earnings, but lower revenue than Zevia PBC. Zevia PBC is trading at a lower price-to-earnings ratio than Coffee, indicating that it is currently the more affordable of the two stocks.

Summary

Coffee beats Zevia PBC on 8 of the 14 factors compared between the two stocks.

About Coffee

Coffee Holding Co., Inc. engages in manufacturing, roasting, packaging, marketing, and distributing roasted and blended coffees in the United States, Australia, Canada, England, and China. It offers wholesale green coffee products, including unroasted raw beans that are sold to large, medium, and small roasters, as well as coffee shop operators; and roasts, blends, packages, and sells coffee under private labels in cans, brick packages, and instants of various sizes. The company also roasts and blends company label branded coffee to supermarkets, wholesalers, and individually owned stores; and sells tabletop coffee roasting equipment, instant coffees, and tea products for its customers. Its coffee brands include Cafe Caribe, Don Manuel, S&W, Cafe Supremo, Via Roma, Premier Roasters, and Harmony Bay. The company was formerly known as Transpacific International Group Corp and changed its name to Coffee Holding Co., Inc. in April 1998. Coffee Holding Co., Inc. was founded in 1971 and is headquartered in Staten Island, New York.

About Zevia PBC

Zevia PBC, a beverage company, develops, markets, sells, and distributes various carbonated beverages in the United States and Canada. It offers soda, energy drinks, organic tea, and kidz drinks. The company offers its products through a network of food, drug, warehouse club, mass, natural, convenience, and e-commerce channels, as well as grocery distributors and natural product stores and specialty outlets. It provides its products under the Zevia brand name. The company was founded in 2007 and is headquartered in Encino, California.