Critical Analysis: Mama’s Creations (NASDAQ:MAMA) vs. Tootsie Roll Industries (NYSE:TR)

Tootsie Roll Industries (NYSE:TR) and Mama’s Creations (NASDAQ:MAMA) are both consumer staples companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, profitability and valuation.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Tootsie Roll Industries and Mama’s Creations, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tootsie Roll Industries	0	0	1	0	3.00
Mama’s Creations	0	2	6	1	2.89

Mama’s Creations has a consensus price target of $19.86, suggesting a potential upside of 56.60%. Given Mama’s Creations’ higher possible upside, analysts plainly believe Mama’s Creations is more favorable than Tootsie Roll Industries.

Profitability

This table compares Tootsie Roll Industries and Mama’s Creations’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tootsie Roll Industries	13.14%	10.16%	7.64%
Mama’s Creations	3.53%	10.05%	7.12%

Volatility & Risk

Tootsie Roll Industries has a beta of 0.41, indicating that its share price is 59% less volatile than the S&P 500. Comparatively, Mama’s Creations has a beta of 0.56, indicating that its share price is 44% less volatile than the S&P 500.

Earnings & Valuation

This table compares Tootsie Roll Industries and Mama’s Creations”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tootsie Roll Industries	$724.67 million	3.82	$100.05 million	$1.28	28.84
Mama’s Creations	$171.71 million	3.48	$5.29 million	$0.17	74.59

Tootsie Roll Industries has higher revenue and earnings than Mama’s Creations. Tootsie Roll Industries is trading at a lower price-to-earnings ratio than Mama’s Creations, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

14.3% of Tootsie Roll Industries shares are owned by institutional investors. Comparatively, 45.2% of Mama’s Creations shares are owned by institutional investors. 46.8% of Tootsie Roll Industries shares are owned by company insiders. Comparatively, 1.0% of Mama’s Creations shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Tootsie Roll Industries beats Mama’s Creations on 9 of the 15 factors compared between the two stocks.

About Tootsie Roll Industries

Tootsie Roll Industries, Inc., together with its subsidiaries, engages in the manufacture and sale of confectionery products in the United States, Canada, Mexico, and internationally. It sells its products under the Tootsie Roll, Tootsie Fruit Rolls, Frooties, Tootsie Pops, Tootsie Mini Pops, Child's Play, Caramel Apple Pops, Charms, Blow-Pop, Charms Mini Pops, Cella's, Dots, Junior Mints, Charleston Chew, Sugar Daddy, Sugar Babies, Andes, Fluffy Stuff, Dubble Bubble, Razzles, Cry Baby, NIK-L-NIP, and Tutsi Pop trademarks. The company sells its products directly to wholesale distributors of candy, and food and groceries; and supermarkets, variety stores, dollar stores, chain grocers, drug chains, discount chains, cooperative grocery associations, mass merchandisers, warehouse and membership club stores, vending machine operators, e-commerce merchants, the United States military, and fund-raising charitable organizations, as well as through food and grocery brokers. Tootsie Roll Industries, Inc. was founded in 1896 and is headquartered in Chicago, Illinois.

About Mama’s Creations

Mama’s Creations, Inc. engages in the marketing, manufacturing, and distribution of beef meatballs with sauce, turkey meatballs with sauce, beef meat loaf, sausage and peppers, chicken parmesan, and other similar meats and sauces. Its products include beef meatballs, turkey meatballs, stuffed meatballs, lasagna roll ups, retail ready meals, bulk deli, single-size pasta bowls, and packaged refrigerated products. Its brands include MamaMancini’s, Creative Salads, and The Olive Branch. The company was founded by Daniel Dougherty on July 22, 2009 and is headquartered in East Rutherford, NJ.