Analyzing Mama’s Creations (NASDAQ:MAMA) & Tofutti Brands (OTCMKTS:TOFB)

Tofutti Brands (OTCMKTS:TOFB) and Mama’s Creations (NASDAQ:MAMA) are both small-cap consumer staples companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, analyst recommendations, risk, earnings and dividends.

Risk & Volatility

Tofutti Brands has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500. Comparatively, Mama’s Creations has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500.

Earnings & Valuation

This table compares Tofutti Brands and Mama’s Creations”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tofutti Brands	$8.82 million	0.43	-$860,000.00	($0.13)	-5.60
Mama’s Creations	$123.33 million	3.37	$3.71 million	$0.11	93.36

Mama’s Creations has higher revenue and earnings than Tofutti Brands. Tofutti Brands is trading at a lower price-to-earnings ratio than Mama’s Creations, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

5.1% of Tofutti Brands shares are held by institutional investors. Comparatively, 45.2% of Mama’s Creations shares are held by institutional investors. 7.9% of Tofutti Brands shares are held by company insiders. Comparatively, 6.5% of Mama’s Creations shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Tofutti Brands and Mama’s Creations’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tofutti Brands	-8.74%	-23.29%	-18.27%
Mama’s Creations	3.34%	17.41%	9.10%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Tofutti Brands and Mama’s Creations, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tofutti Brands	0	0	0	0	0.00
Mama’s Creations	0	2	4	0	2.67

Mama’s Creations has a consensus price target of $14.25, indicating a potential upside of 38.75%. Given Mama’s Creations’ stronger consensus rating and higher probable upside, analysts clearly believe Mama’s Creations is more favorable than Tofutti Brands.

Summary

Mama’s Creations beats Tofutti Brands on 12 of the 14 factors compared between the two stocks.

About Tofutti Brands

Tofutti Brands Inc. engages in the development, production, and marketing of plant based, dairy free vegan frozen desserts, cheeses, and other food products under the TOFUTTI brand in the United States, Europe, the Middle East, the Asia Pacific, and Africa. The company offers frozen desserts, including frozen sandwiches and chocolate wafers; ice cream sandwiches; dairy free vegan cheese products, such as cream cheese, sour cream, cheese slices, and dairy free ricotta cheese alternatives; spreads; and frozen food products. It sells its products through independent unaffiliated food brokers to distributors, as well as on a direct basis to retail chain accounts or to warehouse accounts that directly service chain accounts. Tofutti Brands, Inc. was founded in 1981 and is based in Cranford, New Jersey.

About Mama’s Creations

Mama’s Creations, Inc. engages in the marketing, manufacturing, and distribution of beef meatballs with sauce, turkey meatballs with sauce, beef meat loaf, sausage and peppers, chicken parmesan, and other similar meats and sauces. Its products include beef meatballs, turkey meatballs, stuffed meatballs, lasagna roll ups, retail ready meals, bulk deli, single-size pasta bowls, and packaged refrigerated products. Its brands include MamaMancini’s, Creative Salads, and The Olive Branch. The company was founded by Daniel Dougherty on July 22, 2009 and is headquartered in East Rutherford, NJ.