Village Farms International (NASDAQ:VFF – Get Free Report) and ARKO (NASDAQ:ARKO – Get Free Report) are both small-cap consumer staples companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, earnings, dividends, analyst recommendations and valuation.
Institutional and Insider Ownership
12.1% of Village Farms International shares are owned by institutional investors. Comparatively, 78.3% of ARKO shares are owned by institutional investors. 12.6% of Village Farms International shares are owned by insiders. Comparatively, 22.5% of ARKO shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares Village Farms International and ARKO’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Village Farms International | 3.42% | -2.24% | -1.50% |
| ARKO | 0.18% | 5.50% | 0.41% |
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Village Farms International | $351.98 million | 1.25 | -$35.85 million | $0.18 | 21.12 |
| ARKO | $7.84 billion | 0.06 | $20.84 million | $0.11 | 37.23 |
ARKO has higher revenue and earnings than Village Farms International. Village Farms International is trading at a lower price-to-earnings ratio than ARKO, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Village Farms International has a beta of 2.27, meaning that its share price is 127% more volatile than the S&P 500. Comparatively, ARKO has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500.
Analyst Ratings
This is a summary of current recommendations and price targets for Village Farms International and ARKO, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Village Farms International | 0 | 1 | 2 | 1 | 3.00 |
| ARKO | 1 | 3 | 1 | 1 | 2.33 |
ARKO has a consensus target price of $7.13, suggesting a potential upside of 73.99%. Given ARKO’s higher possible upside, analysts clearly believe ARKO is more favorable than Village Farms International.
Summary
ARKO beats Village Farms International on 8 of the 14 factors compared between the two stocks.
About Village Farms International
Village Farms International, Inc., together with its subsidiaries, produces, markets, and sells greenhouse-grown tomatoes, bell peppers, and cucumbers in North America. It operates through four segments: Produce, Cannabis-Canada, Cannabis-U.S., and Energy. The company also produces and supplies cannabis products to other licensed providers and provincial governments in Canada and internationally; develops and sells cannabinoid-based health and wellness products, including ingestible, edibles, and topical applications; and produces power. It markets and distributes its products under the Village Farms brand name to retail supermarkets and fresh food distribution companies, as well as products produced under exclusive and non-exclusive arrangements from greenhouse supply partners. The company was formerly known as Village Farms Canada Inc. and changed its name to Village Farms International, Inc. in December 2009. Village Farms International, Inc. was founded in 1989 and is headquartered in Delta, Canada.
About ARKO
Arko Corp. operates convenience stores in the United States. It operates through Retail, Wholesale, Fleet Fueling, and GPMP segments. The Retail segment engages in the sale of fuel and merchandise to retail consumers. Its Wholesale segment supplies fuel to third-party dealers and consignment agents. The Fleet Fueling segment supplies fuel to proprietary and third-party cardlock, and issuance of proprietary fuel cards. Its GPMP segment supplies fuel to retail and wholesale segments. The company is based in Richmond, Virginia.
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