Head to Head Comparison: MGP Ingredients (NASDAQ:MGPI) & Choose Rain (OTCMKTS:RSAU)

Choose Rain (OTCMKTS:RSAU) and MGP Ingredients (NASDAQ:MGPI) are both small-cap consumer staples companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, profitability, analyst recommendations, earnings and risk.

Analyst Recommendations

This is a summary of current recommendations and price targets for Choose Rain and MGP Ingredients, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Choose Rain	0	0	0	0	0.00
MGP Ingredients	1	1	4	0	2.50

MGP Ingredients has a consensus price target of $40.00, indicating a potential upside of 59.81%. Given MGP Ingredients’ stronger consensus rating and higher probable upside, analysts plainly believe MGP Ingredients is more favorable than Choose Rain.

Profitability

This table compares Choose Rain and MGP Ingredients’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Choose Rain	N/A	N/A	N/A
MGP Ingredients	-2.56%	9.65%	5.83%

Volatility & Risk

Choose Rain has a beta of 0.06, indicating that its stock price is 94% less volatile than the S&P 500. Comparatively, MGP Ingredients has a beta of 0.39, indicating that its stock price is 61% less volatile than the S&P 500.

Insider and Institutional Ownership

77.1% of MGP Ingredients shares are owned by institutional investors. 34.4% of MGP Ingredients shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Choose Rain and MGP Ingredients”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Choose Rain	N/A	N/A	-$670,000.00	($0.03)	-9.46
MGP Ingredients	$578.86 million	0.92	$34.66 million	($0.67)	-37.36

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

Summary

MGP Ingredients beats Choose Rain on 10 of the 13 factors compared between the two stocks.

About Choose Rain

Choose Rain, Inc. collects, purifies, and filters rainwater into bottled drinking water. It serves its water to art shows, business meetings, college reunions, conventions, family reunions, festivals, golf tournaments, high school reunions, parades, parties/weddings, and sporting events. The company offers products through stores, small boutique locations, and its online store. The company was incorporated in 1998 and is based in Ormond Beach, Florida.

About MGP Ingredients

MGP Ingredients, Inc., together with its subsidiaries, engages in the production and supply of distilled spirits, branded spirits, and food ingredients in the United States and internationally. The company operates through three segments: Distillery Solutions; Branded Spirits; and Ingredient Solutions. The Distillery Solutions segment provides food grade alcohol for beverage applications that include bourbon, rye, whiskeys, as well as grain neutral spirits, include vodka and gin; and food-grade industrial alcohol, which is used as an ingredient in food products, personal care products, cleaning solutions, pharmaceuticals, and various other products. This segment also offers distillery co-products, such as dried distillers’ grain, fuel-grade alcohol for blending with gasoline, and corn oil; and provides warehouse services, including barrel put away, barrel storage, and barrel retrieval services, as well as blending services. The Branded Spirits segment provides premium plus, ultra-premium, super premium, premium, mid, and value branded distilled spirits, as well as private label products. The Ingredient Solutions segment provides specialty wheat starches for food applications under the Fibersym, Resistant Starch series, and FiberRite RW Resistant Starch names; specialty wheat proteins for food applications under the Arise and Proterra names; gluten-free textured pea proteins; commodity wheat starch for food and non-food applications; and commodity wheat proteins. It sells its products directly or through distributors to manufacturers and processors of finished packaged goods or to bakeries. The company was founded in 1941 and is based in Atchison, Kansas.