Critical Survey: Keurig Dr Pepper (NASDAQ:KDP) and Arcadia Biosciences (NASDAQ:RKDA)

Arcadia Biosciences (NASDAQ:RKDA) and Keurig Dr Pepper (NASDAQ:KDP) are both consumer staples companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, earnings, institutional ownership, profitability and dividends.

Analyst Ratings

This is a breakdown of current recommendations for Arcadia Biosciences and Keurig Dr Pepper, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arcadia Biosciences	1	0	0	0	1.00
Keurig Dr Pepper	0	7	11	0	2.61

Keurig Dr Pepper has a consensus target price of $36.00, indicating a potential upside of 3.99%. Given Keurig Dr Pepper’s stronger consensus rating and higher probable upside, analysts clearly believe Keurig Dr Pepper is more favorable than Arcadia Biosciences.

Earnings & Valuation

This table compares Arcadia Biosciences and Keurig Dr Pepper”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arcadia Biosciences	$4.75 million	0.08	-$2.34 million	($4.56)	-0.04
Keurig Dr Pepper	$16.60 billion	2.84	$2.08 billion	$0.99	34.97

Keurig Dr Pepper has higher revenue and earnings than Arcadia Biosciences. Arcadia Biosciences is trading at a lower price-to-earnings ratio than Keurig Dr Pepper, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

17.7% of Arcadia Biosciences shares are held by institutional investors. Comparatively, 94.0% of Keurig Dr Pepper shares are held by institutional investors. 4.5% of Arcadia Biosciences shares are held by company insiders. Comparatively, 0.3% of Keurig Dr Pepper shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Arcadia Biosciences has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500. Comparatively, Keurig Dr Pepper has a beta of 0.4, suggesting that its share price is 60% less volatile than the S&P 500.

Profitability

This table compares Arcadia Biosciences and Keurig Dr Pepper’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arcadia Biosciences	-234.53%	-183.50%	-91.25%
Keurig Dr Pepper	7.10%	10.80%	4.36%

Summary

Keurig Dr Pepper beats Arcadia Biosciences on 12 of the 14 factors compared between the two stocks.

About Arcadia Biosciences

Arcadia Biosciences, Inc. produces and markets plant-based food and beverage products in the United States. The company develops crop improvements primarily in wheat to enhance farm economics by improving the performance of crops in the field, as well as their value as food ingredients. Its food, beverage, and body case products include GoodWheat, Zola coconut water, ProVault topical pain relief, and SoulSpring. The company was incorporated in 2002 and is headquartered in Dallas, Texas.

About Keurig Dr Pepper

Keurig Dr Pepper Inc. owns, manufactures, and distributors beverages and single serve brewing systems in the United States and internationally. It operates through three segments: U.S. Refreshment Beverages, U.S. Coffee, and International. The U.S. Refreshment Beverages segment manufactures and distributes branded concentrates, syrup, and finished beverages. Its U.S. Coffee segment offers finished goods relating to K-Cup pods, single serve brewers, specialty coffee, and ready to drink coffee products through Keurig.com website. The International segment provides sales in Canada, Mexico, the Caribbean, and other international markets from the manufacture and distribution of branded concentrates, syrup, and finished beverages; and sales in Canada from the manufacture and distribution of finished goods relating to the Company's single serve brewers, KCup pods, and other coffee products. It serves retailers, third-party bottlers and distributors, retail partners, hotel chains, office coffee distributors, and end-use consumers. The company offers its products under the Dr Pepper, Canada Dry, Green Mountain Coffee Roasters, Snapple, Mott's, The Original Donut Shop, Clamato, and Core Hydration brand name. Keurig Dr Pepper Inc. was founded in 1981 and is headquartered in Burlington, Massachusetts.