Coffee (NASDAQ:JVA) and Alkaline Water (OTCMKTS:WTER) are both small-cap consumer staples companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, analyst recommendations, valuation, earnings and risk.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Coffee and Alkaline Water, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Coffee 0 0 1 0 3.00
Alkaline Water 0 0 0 0 N/A

Coffee currently has a consensus target price of $9.00, suggesting a potential upside of 100.00%. Given Coffee’s higher probable upside, analysts plainly believe Coffee is more favorable than Alkaline Water.

Earnings & Valuation

This table compares Coffee and Alkaline Water’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Coffee $77.13 million 0.33 $460,000.00 N/A N/A
Alkaline Water $19.81 million 6.00 -$6.68 million N/A N/A

Coffee has higher revenue and earnings than Alkaline Water.

Insider and Institutional Ownership

22.8% of Coffee shares are owned by institutional investors. 12.0% of Coffee shares are owned by insiders. Comparatively, 5.9% of Alkaline Water shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Coffee has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500. Comparatively, Alkaline Water has a beta of 0.11, indicating that its stock price is 89% less volatile than the S&P 500.

Profitability

This table compares Coffee and Alkaline Water’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Coffee 1.13% 3.91% 2.52%
Alkaline Water -26.68% -643.47% -102.33%

Summary

Coffee beats Alkaline Water on 10 of the 11 factors compared between the two stocks.

About Coffee

Coffee Holding Co., Inc. manufactures, roasts, packages, markets, and distributes roasted and blended coffees in the United States, Canada, Australia, England, and China. The company offers wholesale green coffee products, which include unroasted raw beans of approximately 90 varieties that are sold to large, medium, and small roasters, as well as to coffee shop operators. It also roasts, blends, packages, and sells coffee under private labels. As of October 31, 2017, the company supplied private label coffee under approximately 26 labels to wholesalers and retailers in cans, brick packages, and instants of various sizes. In addition, it roasts, blends, and packages company label branded coffee to supermarkets, wholesalers, and individually owned and multi-unit retail customers. Further, the company offers tabletop coffee roasting equipment, instant coffees, and tea products for its customers. Its coffee brands include Cafe Caribe, Don Manuel, S&W, Cafe Supremo, Via Roma, Premier Roasters, and Harmony Bay. The company was founded in 1971 and is headquartered in Staten Island, New York.

About Alkaline Water

The Alkaline Water Company Inc. produces, distributes, and markets bottled alkaline water in the United States. The company offers bottled alkaline water in various volumes under the Alkaline88 trade name. It sells its products through brokers and distributors to retailers, such as convenience stores, natural food products stores, large ethnic markets, and national retailers. The company was incorporated in 2011 and is headquartered in Scottsdale, Arizona.

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