Contrasting Mondelez International (NASDAQ:MDLZ) and Tofutti Brands (OTCMKTS:TOFB)

Tofutti Brands (OTCMKTS:TOFB) and Mondelez International (NASDAQ:MDLZ) are both consumer staples companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, analyst recommendations, institutional ownership, profitability and risk.

Profitability

This table compares Tofutti Brands and Mondelez International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tofutti Brands	-7.93%	-22.08%	-16.26%
Mondelez International	9.38%	14.16%	5.33%

Valuation and Earnings

This table compares Tofutti Brands and Mondelez International”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tofutti Brands	$8.82 million	0.42	-$860,000.00	($0.13)	-5.54
Mondelez International	$36.44 billion	2.03	$4.61 billion	$2.67	21.43

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for Tofutti Brands and Mondelez International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tofutti Brands	0	0	0	0	0.00
Mondelez International	1	7	14	0	2.59

Mondelez International has a consensus price target of $66.00, suggesting a potential upside of 15.32%. Given Mondelez International’s stronger consensus rating and higher probable upside, analysts clearly believe Mondelez International is more favorable than Tofutti Brands.

Institutional & Insider Ownership

5.1% of Tofutti Brands shares are held by institutional investors. Comparatively, 78.3% of Mondelez International shares are held by institutional investors. 9.3% of Tofutti Brands shares are held by company insiders. Comparatively, 0.4% of Mondelez International shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

Tofutti Brands has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500. Comparatively, Mondelez International has a beta of 0.39, meaning that its stock price is 61% less volatile than the S&P 500.

Summary

Mondelez International beats Tofutti Brands on 12 of the 14 factors compared between the two stocks.

About Tofutti Brands

Tofutti Brands Inc. engages in the development, production, and marketing of plant based, dairy free vegan frozen desserts, cheeses, and other food products under the TOFUTTI brand in the United States, Europe, the Middle East, the Asia Pacific, and Africa. The company offers frozen desserts, including frozen sandwiches and chocolate wafers; ice cream sandwiches; dairy free vegan cheese products, such as cream cheese, sour cream, cheese slices, and dairy free ricotta cheese alternatives; spreads; and frozen food products. It sells its products through independent unaffiliated food brokers to distributors, as well as on a direct basis to retail chain accounts or to warehouse accounts that directly service chain accounts. Tofutti Brands, Inc. was founded in 1981 and is based in Cranford, New Jersey.

About Mondelez International

Mondelez International, Inc., through its subsidiaries, manufactures, markets, and sells snack food and beverage products in the Latin America, North America, Asia, the Middle East, Africa, and Europe. It provides biscuits and baked snacks, including cookies, crackers, salted snacks, snack bars, and cakes and pastries; chocolates; and gums and candies, as well as various cheese and grocery, and powdered beverage products. The company's brand portfolio includes Oreo, Ritz, LU, CLIF Bar, and Tate's Bake Shop biscuits and baked snacks, as well as Cadbury Dairy Milk, Milka, and Toblerone chocolate. It serves supermarket chains, wholesalers, supercenters, club stores, mass merchandisers, distributors, convenience stores, gasoline stations, drug stores, value stores, and other retail food outlets through direct store delivery, company-owned and satellite warehouses, distribution centers, third party distributors, and other facilities, as well as through independent sales offices and agents. The company also sells products directly to businesses and consumers through e-retail platforms, retailer digital platforms, as well as through its direct-to-consumer websites and social media platforms. Mondelez International, Inc. was formerly known as Kraft Foods Inc. and changed its name to Mondelez International, Inc. in October 2012. The company was incorporated in 2000 and is headquartered in Chicago, Illinois.