Farmer Bros (NASDAQ:FARM) and Jammin Java (OTCMKTS:JAMN) are both small-cap retail/wholesale companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, analyst recommendations, institutional ownership and dividends.

Institutional and Insider Ownership

59.4% of Farmer Bros shares are owned by institutional investors. 10.9% of Farmer Bros shares are owned by insiders. Comparatively, 18.2% of Jammin Java shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Farmer Bros has a beta of 0.22, indicating that its stock price is 78% less volatile than the S&P 500. Comparatively, Jammin Java has a beta of -5.52, indicating that its stock price is 652% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Farmer Bros and Jammin Java, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Farmer Bros 0 0 3 0 3.00
Jammin Java 0 0 0 0 N/A

Farmer Bros presently has a consensus price target of $34.67, suggesting a potential upside of 39.84%. Given Farmer Bros’ higher probable upside, equities analysts plainly believe Farmer Bros is more favorable than Jammin Java.

Earnings & Valuation

This table compares Farmer Bros and Jammin Java’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Farmer Bros $606.54 million 0.69 -$18.28 million $0.13 190.69
Jammin Java $11.20 million 0.00 -$5.20 million N/A N/A

Jammin Java has lower revenue, but higher earnings than Farmer Bros.

Profitability

This table compares Farmer Bros and Jammin Java’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Farmer Bros -4.10% -0.58% -0.27%
Jammin Java N/A N/A N/A

Summary

Farmer Bros beats Jammin Java on 6 of the 11 factors compared between the two stocks.

About Farmer Bros

Farmer Bros. Co. engages in the manufacture, wholesale, and distribution of coffee, tea, and culinary products in the United States. The company offers roast and ground coffee; frozen liquid coffee; flavored and unflavored iced and hot teas; culinary products, including gelatins and puddings, soup bases, dressings, gravy and sauce mixes, pancake and biscuit mixes, jellies and preserves, and coffee-related products, such as coffee filters, sugar, and creamers; spices; and other beverages comprising cappuccino, cocoa, granitas, and ready-to-drink cold brew and iced coffee. It sells its products under the Farmer Brothers, Artisan Collection by Farmer Brothers, Superior, Metropolitan, China Mist, Boyds, Direct Trade, Fair Trade Certified, Rainforest Alliance Certified, Un Momento, Collaborative Coffee, Cain's, and McGarvey brand names, as well as under various private labels. The company serves small independent restaurants, foodservice operators, restaurants, department and convenience store chains, hotels, casinos, healthcare facilities, gourmet coffee houses, and grocery chains. It distributes its products through direct-store-delivery network, and common carriers or third-party distributors, as well as Website. Farmer Bros. Co. was founded in 1912 and is headquartered in Northlake, Texas.

About Jammin Java

Jammin Java Corp. produces and sells roasted coffee under the Marley Coffee brand name in the United States and internationally. It distributes roasted coffee to grocery, retail, online, service, hospitality, office coffee service, and big box store industries. The company was formerly known as Marley Coffee Inc. and changed its name to Jammin Java Corp. in July 2009. Jammin Java Corp. was founded in 2004 and is headquartered in Denver, Colorado.

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