Financial Contrast: Barfresh Food Group (NASDAQ:BRFH) vs. BellRing Brands (NYSE:BRBR)

BellRing Brands (NYSE:BRBR) and Barfresh Food Group (NASDAQ:BRFH) are both small-cap consumer staples companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, institutional ownership, valuation, analyst recommendations and risk.

Insider & Institutional Ownership

95.0% of BellRing Brands shares are owned by institutional investors. Comparatively, 22.7% of Barfresh Food Group shares are owned by institutional investors. 1.5% of BellRing Brands shares are owned by company insiders. Comparatively, 26.7% of Barfresh Food Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares BellRing Brands and Barfresh Food Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BellRing Brands	7.28%	-33.04%	15.63%
Barfresh Food Group	-17.88%	-295.15%	-30.31%

Volatility & Risk

BellRing Brands has a beta of 0.43, suggesting that its stock price is 57% less volatile than the S&P 500. Comparatively, Barfresh Food Group has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500.

Earnings and Valuation

This table compares BellRing Brands and Barfresh Food Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BellRing Brands	$2.32 billion	0.37	$216.20 million	$1.42	5.24
Barfresh Food Group	$14.21 million	0.98	-$2.69 million	($0.23)	-3.71

BellRing Brands has higher revenue and earnings than Barfresh Food Group. Barfresh Food Group is trading at a lower price-to-earnings ratio than BellRing Brands, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and recommmendations for BellRing Brands and Barfresh Food Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BellRing Brands	1	8	9	0	2.44
Barfresh Food Group	2	0	0	0	1.00

BellRing Brands currently has a consensus target price of $19.82, suggesting a potential upside of 166.31%. Given BellRing Brands’ stronger consensus rating and higher probable upside, analysts clearly believe BellRing Brands is more favorable than Barfresh Food Group.

Summary

BellRing Brands beats Barfresh Food Group on 11 of the 14 factors compared between the two stocks.

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.

About Barfresh Food Group

Barfresh Food Group, Inc., together with its subsidiaries, manufactures and distributes ready-to-drink and ready-to-blend frozen beverages in the United States. It offers smoothies, shakes and frappes in various formats comprising ready-to-drink smoothie, easy pour, juice concentrates, and single serve. The company was founded in 2009 and is based in Los Angeles, California.