Head-To-Head Analysis: Freshpet (FRPT) versus Petiq (PETQ)
Freshpet (NASDAQ: FRPT) and Petiq (NASDAQ:PETQ) are both small-cap consumer staples companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, valuation, risk, institutional ownership, profitability and dividends.
Insider and Institutional Ownership
66.8% of Freshpet shares are held by institutional investors. 6.8% of Freshpet shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This table compares Freshpet and Petiq’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent recommendations for Freshpet and Petiq, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Freshpet currently has a consensus price target of $15.75, suggesting a potential upside of 0.32%. Petiq has a consensus price target of $27.00, suggesting a potential upside of 7.91%. Given Petiq’s stronger consensus rating and higher possible upside, analysts plainly believe Petiq is more favorable than Freshpet.
Earnings & Valuation
This table compares Freshpet and Petiq’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Freshpet||$143.08 million||3.49||$8.06 million||($0.11)||-142.73|
Freshpet has higher revenue and earnings than Petiq.
Petiq beats Freshpet on 6 of the 9 factors compared between the two stocks.
Freshpet, Inc. is a manufacturer of fresh, refrigerated pet food distributed across North America. The Company operates in the segment of manufacturing, marketing and distribution of pet food and pet treats for dogs and cats. The Company’s products consist of dog food, cat food, and dog and cat treats. Its recipes include real, fresh meat and varying combinations of vegetables, leafy greens and anti-oxidant rich fruits, without the use of preservatives, additives or artificial ingredients. All of its products are sold under the Freshpet brand name, with ingredients, packaging and labeling customized by class of retail. It also offers fresh treats across all classes of retail under the Dognation and Dog Joy labels. The Company’s products are available in various forms, including slice and serve rolls, bagged meals and tubs. All of the Company’s products are manufactured in the United States.
PetIQ, Inc. is engaged in manufacturing and distributing pet medication and health and wellness products to the retail channel in the United States. The Company provides retail stores with third-party brands, including Frontline Plus, Heartgard Plus, PetAction Plus, Advecta II, Pet Lock Plus, Pet Lock Max, TruProfen and Heartshield. It distributes the products through veterinarian, retail and e-commerce channels. The Company offers its products in a range of categories, including Rx Medications, OTC Medications and Supplies, and Health and Wellness Products. Rx Medications offering includes heartworm preventatives, arthritis, thyroid, diabetes and pain treatments, antibiotics and other specialty medications. The Company manufactures Heart Shield Plus, version of Heartgard Plus, which prevents heartworm infection in dogs. The Company also manufactures TruProfen, the version of Rimadyl, which treats arthritis in dogs. OTC Medications and Supplies include flea and tick control products.
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