Critical Contrast: Freshpet (NASDAQ:FRPT) and Mission Produce (NASDAQ:AVO)

Mission Produce (NASDAQ:AVO) and Freshpet (NASDAQ:FRPT) are both consumer staples companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, earnings, profitability, valuation and institutional ownership.

Earnings & Valuation

This table compares Mission Produce and Freshpet”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mission Produce	$1.34 billion	0.76	$37.70 million	$0.03	388.67
Freshpet	$1.10 billion	2.82	$139.14 million	$2.52	25.55

Freshpet has lower revenue, but higher earnings than Mission Produce. Freshpet is trading at a lower price-to-earnings ratio than Mission Produce, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Mission Produce has a beta of 0.45, suggesting that its share price is 55% less volatile than the S&P 500. Comparatively, Freshpet has a beta of 1.75, suggesting that its share price is 75% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Mission Produce and Freshpet, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mission Produce	1	1	4	1	2.71
Freshpet	0	7	9	0	2.56

Mission Produce currently has a consensus price target of $16.00, suggesting a potential upside of 37.22%. Freshpet has a consensus price target of $80.31, suggesting a potential upside of 24.72%. Given Mission Produce’s stronger consensus rating and higher possible upside, research analysts clearly believe Mission Produce is more favorable than Freshpet.

Profitability

This table compares Mission Produce and Freshpet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mission Produce	0.12%	5.91%	3.41%
Freshpet	10.90%	6.39%	4.36%

Institutional and Insider Ownership

63.6% of Mission Produce shares are owned by institutional investors. 30.8% of Mission Produce shares are owned by insiders. Comparatively, 4.3% of Freshpet shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Freshpet beats Mission Produce on 8 of the 15 factors compared between the two stocks.

About Mission Produce

Mission Produce, Inc. engages in the sourcing, farming, packaging, marketing, and distribution of avocados, mangoes, and blueberries to food retailers, distributors, and foodservice customers in the United States and internationally. The company operates through three segments, Marketing and Distribution; International Farming; and Blueberries. It also provides ripening, bagging, custom packing, logistical management, and quality assurance services. In addition, the company offers merchandising and promotional support, and insights on market trends, and training services. Mission Produce, Inc. was founded in 1983 and is headquartered in Oxnard, California.

About Freshpet

Freshpet, Inc., together with its subsidiaries, manufactures, distributes, and markets natural fresh meals and treats for dogs and cats in the United States, Canada, and Europe. It sells dog food, cat food, and dog treats under the Freshpet brand name; and Dognation and Dog Joy labels through various classes of retail, including grocery, mass, club, pet specialty, and natural, as well as online. The company was incorporated in 2004 and is headquartered in Secaucus, New Jersey.