Head-To-Head Analysis: Kraft Heinz (NASDAQ:KHC) versus CIMG (NASDAQ:IMG)

Kraft Heinz (NASDAQ:KHC) and CIMG (NASDAQ:IMG) are both consumer staples companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, risk, dividends, earnings, analyst recommendations, institutional ownership and profitability.

Institutional and Insider Ownership

78.2% of Kraft Heinz shares are held by institutional investors. Comparatively, 23.4% of CIMG shares are held by institutional investors. 0.2% of Kraft Heinz shares are held by insiders. Comparatively, 0.1% of CIMG shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Kraft Heinz has a beta of 0.12, suggesting that its share price is 88% less volatile than the S&P 500. Comparatively, CIMG has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500.

Profitability

This table compares Kraft Heinz and CIMG’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kraft Heinz	-13.64%	7.10%	3.60%
CIMG	N/A	-23.59%	-15.90%

Valuation and Earnings

This table compares Kraft Heinz and CIMG”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kraft Heinz	$24.90 billion	1.19	-$5.85 billion	($2.86)	-8.73
CIMG	$10.30 million	0.21	-$4.88 million	($4.00)	-0.06

CIMG has lower revenue, but higher earnings than Kraft Heinz. Kraft Heinz is trading at a lower price-to-earnings ratio than CIMG, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Kraft Heinz and CIMG, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kraft Heinz	5	10	1	0	1.75
CIMG	1	0	0	0	1.00

Kraft Heinz presently has a consensus price target of $23.60, suggesting a potential downside of 5.43%. Given Kraft Heinz’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Kraft Heinz is more favorable than CIMG.

Summary

Kraft Heinz beats CIMG on 10 of the 14 factors compared between the two stocks.

About Kraft Heinz

The Kraft Heinz Company, together with its subsidiaries, manufactures and markets food and beverage products in North America and internationally. Its products include condiments and sauces, cheese and dairy products, meals, meats, refreshment beverages, coffee, and other grocery products under the Kraft, Oscar Mayer, Heinz, Philadelphia, Lunchables, Velveeta, Ore-Ida, Maxwell House, Kool-Aid, Jell-O, Heinz, ABC, Master, Quero, Kraft, Golden Circle, Wattie's, Pudliszki, and Plasmon brands. It sells its products through its own sales organizations, as well as through independent brokers, agents, and distributors to chain, wholesale, cooperative, and independent grocery accounts; convenience, value, and club stores; pharmacies and drug stores; mass merchants; foodservice distributors; institutions, including hotels, restaurants, bakeries, hospitals, health care facilities, and government agencies; and online through various e-commerce platforms and retailers. The company was formerly known as H.J. Heinz Holding Corporation and changed its name to The Kraft Heinz Company in July 2015. The Kraft Heinz Company was founded in 1869 and is based in Pittsburgh, Pennsylvania.

About CIMG

CIMG Inc. is a digital marketing, sales and distribution company for various consumer products with focuses on food and beverages. CIMG Inc., formerly known as NUZEE INC., is based in BEIJING.