Contrasting Bridgford Foods (NASDAQ:BRID) & Vital Farms (NASDAQ:VITL)

Bridgford Foods (NASDAQ:BRID) and Vital Farms (NASDAQ:VITL) are both small-cap consumer staples companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, earnings, profitability and risk.

Earnings & Valuation

This table compares Bridgford Foods and Vital Farms”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bridgford Foods	$230.99 million	0.22	-$13.36 million	($1.59)	-3.52
Vital Farms	$759.44 million	0.47	$66.28 million	($0.04)	-210.00

Vital Farms has higher revenue and earnings than Bridgford Foods. Vital Farms is trading at a lower price-to-earnings ratio than Bridgford Foods, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Bridgford Foods has a beta of -0.17, indicating that its share price is 117% less volatile than the S&P 500. Comparatively, Vital Farms has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500.

Insider & Institutional Ownership

4.7% of Bridgford Foods shares are held by institutional investors. Comparatively, 98.6% of Vital Farms shares are held by institutional investors. 80.7% of Bridgford Foods shares are held by company insiders. Comparatively, 3.9% of Vital Farms shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Bridgford Foods and Vital Farms’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bridgford Foods	-6.36%	-12.97%	-10.05%
Vital Farms	0.02%	3.46%	2.25%

Analyst Recommendations

This is a summary of current ratings and target prices for Bridgford Foods and Vital Farms, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bridgford Foods	1	0	0	0	1.00
Vital Farms	1	8	5	0	2.29

Vital Farms has a consensus price target of $16.73, indicating a potential upside of 99.13%. Given Vital Farms’ stronger consensus rating and higher probable upside, analysts clearly believe Vital Farms is more favorable than Bridgford Foods.

Summary

Vital Farms beats Bridgford Foods on 12 of the 14 factors compared between the two stocks.

About Bridgford Foods

Bridgford Foods Corporation, together with its subsidiaries, manufactures, markets, and distributes frozen and snack food products in the United States. It operates in two segments, Frozen Food Products and Snack Food Products. The company offers biscuits, bread dough items, roll dough items, and dry sausage and beef jerky products, as well as ready to eat sandwiches and non-refrigerated snack food products. It provides frozen food products to food service and retail customers through wholesalers, cooperatives, and distributors; and snack food items to supermarkets, mass merchandise, and convenience retail stores through customer-owned distribution centers, as well as a direct store delivery network. The company was founded in 1932 and is headquartered in Dallas, Texas. Bridgford Foods Corporation operates as a subsidiary of Bridgford Industries Incorporated.

About Vital Farms

Vital Farms, Inc., a food company, provides pasture-raised products in the United States. It offers shell eggs, butter, hard-boiled eggs, and liquid whole eggs. The company was founded in 2007 and is headquartered in Austin, Texas.