Mama’s Creations (NASDAQ:MAMA) and BellRing Brands (NYSE:BRBR) Critical Analysis

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Mama’s Creations and BellRing Brands, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mama’s Creations	0	2	4	0	2.67
BellRing Brands	2	8	9	0	2.37

Mama’s Creations currently has a consensus price target of $18.80, suggesting a potential upside of 24.34%. BellRing Brands has a consensus price target of $22.47, suggesting a potential upside of 153.89%. Given BellRing Brands’ higher probable upside, analysts clearly believe BellRing Brands is more favorable than Mama’s Creations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Mama’s Creations	3.21%	14.69%	8.91%
BellRing Brands	6.78%	-44.06%	19.42%

Insider & Institutional Ownership

45.2% of Mama’s Creations shares are owned by institutional investors. Comparatively, 95.0% of BellRing Brands shares are owned by institutional investors. 1.0% of Mama’s Creations shares are owned by insiders. Comparatively, 1.5% of BellRing Brands shares are owned by 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.

Valuation and Earnings

This table compares Mama’s Creations and BellRing Brands”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mama’s Creations	$171.71 million	3.58	$5.29 million	$0.14	108.00
BellRing Brands	$2.32 billion	0.44	$216.20 million	$1.29	6.86

BellRing Brands has higher revenue and earnings than Mama’s Creations. BellRing 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.

Risk & Volatility

Mama’s Creations has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500. Comparatively, BellRing Brands has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500.

Summary

BellRing Brands beats Mama’s Creations on 9 of the 14 factors compared between the two stocks.

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.

About BellRing Brands

BellRing Brands, Inc., together with its subsidiaries, provides various nutrition products in the United States. The company offers ready-to-drink (RTD) protein shakes, other RTD beverages, powders, nutrition bars, and other products primarily under the Premier Protein and Dymatize brands. It distributes its products through club, food, drug, mass, eCommerce, specialty, and convenience channels. BellRing Brands, Inc. was incorporated in 2019 and is headquartered in Saint Louis, Missouri.