Head to Head Analysis: Pilgrim’s Pride (NASDAQ:PPC) vs. Westrock Coffee (NASDAQ:WEST)

Westrock Coffee (NASDAQ:WEST) and Pilgrim’s Pride (NASDAQ:PPC) are both consumer staples companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, analyst recommendations, profitability, earnings and valuation.

Profitability

This table compares Westrock Coffee and Pilgrim’s Pride’s 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%
Pilgrim’s Pride	2.96%	21.70%	7.90%

Risk & Volatility

Westrock Coffee has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500. Comparatively, Pilgrim’s Pride has a beta of 0.31, meaning that its stock price is 69% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Westrock Coffee and Pilgrim’s Pride, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Westrock Coffee	1	1	3	0	2.40
Pilgrim’s Pride	1	5	2	0	2.12

Westrock Coffee currently has a consensus target price of $10.00, suggesting a potential upside of 21.21%. Pilgrim’s Pride has a consensus target price of $36.50, suggesting a potential upside of 30.87%. Given Pilgrim’s Pride’s higher possible upside, analysts plainly believe Pilgrim’s Pride is more favorable than Westrock Coffee.

Valuation and Earnings

This table compares Westrock Coffee and Pilgrim’s Pride”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Westrock Coffee	$1.19 billion	0.68	-$90.44 million	($0.66)	-12.50
Pilgrim’s Pride	$18.50 billion	0.36	$1.08 billion	$2.30	12.13

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

Institutional & Insider Ownership

45.1% of Westrock Coffee shares are held by institutional investors. Comparatively, 16.6% of Pilgrim’s Pride shares are held by institutional investors. 25.4% of Westrock Coffee shares are held by company insiders. Comparatively, 82.2% of Pilgrim’s Pride shares are held by company 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.

Summary

Pilgrim’s Pride beats Westrock Coffee on 9 of the 14 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 Pilgrim’s Pride

Pilgrim’s Pride Corp. engages in the production, processing, marketing, and distribution of fresh, frozen and value-added chicken and pork products to retailers, distributors, and foodservice operators. It operates through the following segments: U.S., U.K. and Europe, and Mexico. The company was founded by Lonnie A. Pilgrim and Aubrey Pilgrim on October 2, 1946, and is headquartered in Greeley, CO.