Head to Head Survey: Simply Good Foods (NASDAQ:SMPL) versus Westrock Coffee (NASDAQ:WEST)

Westrock Coffee (NASDAQ:WEST) and Simply Good Foods (NASDAQ:SMPL) are both small-cap consumer staples companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, earnings, analyst recommendations and dividends.

Volatility and Risk

Westrock Coffee has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500. Comparatively, Simply Good Foods has a beta of 0.17, suggesting that its stock price is 83% less volatile than the S&P 500.

Insider and Institutional Ownership

45.1% of Westrock Coffee shares are held by institutional investors. Comparatively, 88.5% of Simply Good Foods shares are held by institutional investors. 25.4% of Westrock Coffee shares are held by insiders. Comparatively, 8.8% of Simply Good Foods shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Westrock Coffee and Simply Good Foods’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Westrock Coffee	-4.88%	-2,145.68%	-3.44%
Simply Good Foods	-14.28%	9.34%	6.67%

Valuation and Earnings

This table compares Westrock Coffee and Simply Good Foods”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Westrock Coffee	$1.19 billion	0.64	-$90.44 million	($0.66)	-11.88
Simply Good Foods	$1.45 billion	0.62	$103.61 million	($2.17)	-4.67

Simply Good Foods has higher revenue and earnings than Westrock Coffee. Westrock Coffee is trading at a lower price-to-earnings ratio than Simply Good Foods, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and price targets for Westrock Coffee and Simply Good Foods, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Westrock Coffee	1	1	3	0	2.40
Simply Good Foods	1	9	3	0	2.15

Westrock Coffee presently has a consensus price target of $10.00, indicating a potential upside of 27.55%. Simply Good Foods has a consensus price target of $14.45, indicating a potential upside of 42.69%. Given Simply Good Foods’ higher possible upside, analysts plainly believe Simply Good Foods is more favorable than Westrock Coffee.

Summary

Simply Good Foods beats Westrock Coffee on 7 of the 13 factors compared between the two stocks.

About Westrock Coffee

Westrock Coffee Company, LLC operates as an integrated coffee, tea, flavors, extracts, and ingredients solutions provider in the United States and internationally. It operates through two segments, Beverage Solutions, and Sustainable Sourcing & Traceability (SS&T). The Beverage Solutions segment provides various packaging, including branded and private label coffee in bags, fractional packs, and single serve cups, as well as extract solutions for applications in cold brew and ready-to-drink offerings. The SS&T segment engages in delivery and settlement of forward sales contracts for green coffee. The company offers coffee sourcing, supply chain management, product development, roasting, packaging, and distribution services to the retail, food service and restaurant, convenience store and travel center, non-commercial account, CPG, and hospitality industries. Westrock Coffee Company, LLC was founded in 2009 and is headquartered in Little Rock, Arkansas.

About Simply Good Foods

The Simply Good Foods Company operates as a consumer-packaged food and beverage company in North America and internationally. The company develops, markets, and sells snacks and meal replacements. It offers protein bars, ready-to-drink shakes, sweet and salty snacks, cookies, protein chips, and recipes under the Atkins and Quest brand names. The company also provides confectionery products, such as full-size and mini peanut butter cups, and fudgey brownie and gooey caramel candy bites, chocolatey coated peanut candies, and coconutty caramel candy bars under Atkins Endulge brand name.It distributes its products to various retail channels, such as mass merchandise, grocery and drug channels, club stores, convenience stores, gas stations, and other channels. The company also sells its products through e-commerce channels, including questnutrition.com, atkins.com, amazon.com and others. The Simply Good Foods Company was founded in 2017 and is headquartered in Denver, Colorado.