Critical Review: PETIQ INC (PETQ) & Freshpet (FRPT)
PETIQ INC (NASDAQ: PETQ) and Freshpet (NASDAQ:FRPT) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, dividends, institutional ownership, profitability, valuation and analyst recommendations.
Institutional and Insider 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 hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This is a summary of recent ratings and price targets for PETIQ INC and Freshpet, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
PETIQ INC currently has a consensus price target of $27.00, indicating a potential upside of 6.72%. Freshpet has a consensus price target of $15.75, indicating a potential downside of 0.94%. Given PETIQ INC’s stronger consensus rating and higher probable upside, equities research analysts plainly believe PETIQ INC is more favorable than Freshpet.
Earnings & Valuation
This table compares PETIQ INC and Freshpet’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Freshpet||$143.08 million||3.53||$8.06 million||($0.11)||-144.55|
Freshpet has higher revenue and earnings than PETIQ INC.
This table compares PETIQ INC and Freshpet’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
PETIQ INC beats Freshpet on 6 of the 9 factors compared between the two stocks.
About PETIQ INC
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.
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.
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