Financial Analysis: Village Farms International (NASDAQ:VFF) and WD-40 (NASDAQ:WDFC)

Village Farms International (NASDAQ:VFF) and WD-40 (NASDAQ:WDFC) are both consumer staples companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, risk, profitability, dividends and earnings.

Risk and Volatility

Village Farms International has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500. Comparatively, WD-40 has a beta of 0.16, suggesting that its stock price is 84% less volatile than the S&P 500.

Insider & Institutional Ownership

12.2% of Village Farms International shares are owned by institutional investors. Comparatively, 91.5% of WD-40 shares are owned by institutional investors. 12.6% of Village Farms International shares are owned by insiders. Comparatively, 0.8% of WD-40 shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Village Farms International and WD-40’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Village Farms International	7.47%	1.98%	1.35%
WD-40	14.68%	31.84%	17.22%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Village Farms International and WD-40, 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
WD-40	0	1	1	0	2.50

WD-40 has a consensus price target of $300.00, indicating a potential upside of 57.27%. Given WD-40’s higher probable upside, analysts plainly believe WD-40 is more favorable than Village Farms International.

Earnings & Valuation

This table compares Village Farms International and WD-40″s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Village Farms International	$336.18 million	1.16	-$35.85 million	$0.18	18.72
WD-40	$619.98 million	4.16	$90.99 million	$6.68	28.56

WD-40 has higher revenue and earnings than Village Farms International. Village Farms International is trading at a lower price-to-earnings ratio than WD-40, indicating that it is currently the more affordable of the two stocks.

Summary

WD-40 beats Village Farms International on 10 of the 15 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 WD-40

WD-40 Company develops and sells maintenance products, and homecare and cleaning products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company provides multi-purpose maintenance products that include aerosol sprays, non-aerosol trigger sprays, precision pens, and in liquid-bulk form products under the WD-40 Multi-Use brand name; specialty maintenance products, such as penetrants, degreasers, corrosion inhibitors, greases, lubricants, and rust removers under the WD-40 Specialist brand; and bike-specific products. It also offers multi-purpose and specialty drip oils, and spray lubricant products, as well as other specialty maintenance products under the 3-IN-ONE brand name; and professional spray maintenance products and lubricants for the bike maintenance market under the GT85 brand name. In addition, the company provides automatic toilet bowl cleaners under the 2000 Flushes brand name; aerosol and liquid trigger carpet stain and odor eliminators under the Spot Shot brand; room and rug deodorizers under the Carpet Fresh brand name; carpet and household cleaners, and rug and room deodorizers under the 1001 brand; heavy-duty hand cleaner products under the Lava brand name in the United States, as well as under the Solvol brand name in Australia; and automatic toilet bowl cleaners under the X-14 brand name. It sells its products primarily through warehouse club stores, hardware stores, automotive parts outlets, industrial distributors and suppliers, mass retail and home center stores, value retailers, grocery stores, online retailers, farm supply, sport retailers, and independent bike dealers. WD-40 Company was founded in 1953 and is headquartered in San Diego, California.