Critical Review: Hot Mama’s Foods (OTCMKTS:HOTF) and CIMG (NASDAQ:IMG)

CIMG (NASDAQ:IMG) and Hot Mama’s Foods (OTCMKTS:HOTF) are both consumer staples companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, valuation, risk, institutional ownership, earnings, analyst recommendations and dividends.

Institutional & Insider Ownership

23.4% of CIMG shares are owned by institutional investors. Comparatively, 0.7% of Hot Mama’s Foods shares are owned by institutional investors. 0.1% of CIMG shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares CIMG and Hot Mama’s Foods’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CIMG	N/A	-23.59%	-15.90%
Hot Mama’s Foods	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for CIMG and Hot Mama’s Foods, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CIMG	1	0	0	0	1.00
Hot Mama’s Foods	0	0	0	0	0.00

Given Hot Mama’s Foods’ higher probable upside, analysts clearly believe Hot Mama’s Foods is more favorable than CIMG.

Earnings and Valuation

This table compares CIMG and Hot Mama’s Foods”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CIMG	$10.30 million	0.21	-$4.88 million	($4.00)	-0.06
Hot Mama’s Foods	N/A	N/A	N/A	($0.11)	N/A

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

Summary

CIMG beats Hot Mama’s Foods on 5 of the 9 factors compared between the two stocks.

About CIMG

CIMG Inc. is a digital marketing, sales and distribution company for various consumer products with focuses on food and beverages. CIMG Inc., formerly known as NUZEE INC., is based in BEIJING.

About Hot Mama’s Foods

Hot Mama's Foods, Inc. develops, manufactures, sells, and distributes fresh, refrigerated, or perishable prepared foods in the United States, Canada, and Mexico. The company's products include salsa, hummus, pesto, dips, spreads, sauces, deli salads, entrees, side dishes, and others. It also provides private label food manufacturing, as well as co-packing services; offers testing and documentation of custom or proprietary formulas; and processes necessary for the introduction of new or customized products. The company sells its products under the Hot Mama's Foods' brand; and under the label of a wholesale brand customer or under private label. Hot Mama's Foods, Inc. markets its products to regional and national retail grocery chains, distributors to the retail grocery industry, brand-holders requiring contract manufacturing services, restaurant chains, and secondary processors making assemblies using the products as components or ingredients. The company was founded in 1984 and is headquartered in Springfield, Massachusetts.