US Foods (NYSE:USFD – Get Free Report) and Mama’s Creations (NASDAQ:MAMA – Get Free Report) are both consumer staples companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, valuation, profitability, dividends, risk and institutional ownership.
Insider and Institutional Ownership
98.8% of US Foods shares are held by institutional investors. Comparatively, 45.2% of Mama’s Creations shares are held by institutional investors. 0.7% of US Foods shares are held by insiders. Comparatively, 6.5% of Mama’s Creations shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares US Foods and Mama’s Creations”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| US Foods | $39.42 billion | 0.46 | $676.00 million | $2.97 | 27.65 |
| Mama’s Creations | $171.71 million | 3.65 | $5.29 million | $0.12 | 128.50 |
US Foods has higher revenue and earnings than Mama’s Creations. US Foods 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.
Risk and Volatility
US Foods has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500. Comparatively, Mama’s Creations has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent recommendations for US Foods and Mama’s Creations, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| US Foods | 0 | 3 | 10 | 0 | 2.77 |
| Mama’s Creations | 0 | 1 | 5 | 0 | 2.83 |
US Foods presently has a consensus target price of $106.75, indicating a potential upside of 30.01%. Mama’s Creations has a consensus target price of $18.80, indicating a potential upside of 21.92%. Given US Foods’ higher possible upside, research analysts clearly believe US Foods is more favorable than Mama’s Creations.
Profitability
This table compares US Foods and Mama’s Creations’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| US Foods | 1.71% | 19.37% | 6.14% |
| Mama’s Creations | 3.06% | 15.31% | 8.85% |
Summary
US Foods beats Mama’s Creations on 8 of the 14 factors compared between the two stocks.
About US Foods
US Foods Holding Corp., together with its subsidiaries, engages in marketing, sale, and distribution of fresh, frozen, and dry food and non-food products to foodservice customers in the United States. The company's customers include independently owned single and multi-unit restaurants, regional concepts, national restaurant chains, hospitals, nursing homes, hotels and motels, country clubs, government and military organizations, colleges and universities, and retail locations. The company was formerly known as USF Holding Corp. and changed its name to US Foods Holding Corp. in February 2016. US Foods Holding Corp. was incorporated in 2007 and is headquartered in Rosemont, Illinois.
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.
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