Analyzing Marine Harvest ASA (OTCMKTS:MHGVY) and Coffee (NASDAQ:JVA)

Coffee (NASDAQ:JVA) and Marine Harvest ASA (OTCMKTS:MHGVY) are both consumer staples companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, profitability, dividends, institutional ownership, risk and earnings.

Earnings & Valuation

This table compares Coffee and Marine Harvest ASA”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Coffee	$96.28 million	0.21	$1.40 million	$0.28	12.61
Marine Harvest ASA	$6.47 billion	1.79	$708.93 million	$1.42	15.49

Marine Harvest ASA has higher revenue and earnings than Coffee. Coffee is trading at a lower price-to-earnings ratio than Marine Harvest ASA, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Coffee and Marine Harvest ASA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Coffee	1.53%	5.41%	3.61%
Marine Harvest ASA	11.19%	11.78%	5.38%

Dividends

Coffee pays an annual dividend of $0.08 per share and has a dividend yield of 2.3%. Marine Harvest ASA pays an annual dividend of $0.74 per share and has a dividend yield of 3.4%. Coffee pays out 28.6% of its earnings in the form of a dividend. Marine Harvest ASA pays out 52.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Volatility and Risk

Coffee has a beta of 1.41, suggesting that its stock price is 41% more volatile than the S&P 500. Comparatively, Marine Harvest ASA has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Coffee and Marine Harvest ASA, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Coffee	0	2	0	0	2.00
Marine Harvest ASA	0	2	0	2	3.00

Coffee presently has a consensus target price of $9.50, suggesting a potential upside of 169.12%. Given Coffee’s higher probable upside, research analysts clearly believe Coffee is more favorable than Marine Harvest ASA.

Summary

Marine Harvest ASA beats Coffee on 11 of the 14 factors compared between the two stocks.

About Coffee

Coffee Holding Co., Inc. engages in manufacturing, roasting, packaging, marketing, and distributing roasted and blended coffees in the United States, Australia, Canada, England, and China. It offers wholesale green coffee products, including unroasted raw beans that are sold to large, medium, and small roasters, as well as coffee shop operators; and roasts, blends, packages, and sells coffee under private labels in cans, brick packages, and instants of various sizes. The company also roasts and blends company label branded coffee to supermarkets, wholesalers, and individually owned stores; and sells tabletop coffee roasting equipment, instant coffees, and tea products for its customers. Its coffee brands include Cafe Caribe, Don Manuel, S&W, Cafe Supremo, Via Roma, Premier Roasters, and Harmony Bay. The company was formerly known as Transpacific International Group Corp and changed its name to Coffee Holding Co., Inc. in April 1998. Coffee Holding Co., Inc. was founded in 1971 and is headquartered in Staten Island, New York.

About Marine Harvest ASA

Mowi ASA, a seafood company, farms, produces, and supplies Atlantic salmon products worldwide. It operates through three segments: Feed, Farming, and Sales and Marketing. The company is involved in the salmon feed production, salmon farming and primary processing, and seafood secondary processing activities. It offers whole fish, plain and marinated fillets and steaks, hot- and cold-smoked salmon, burgers and tartars, patties, gravad, sushi, and breaded products under the Ducktrap, MOWI, and Supreme Salmon brands. The company was formerly known as Marine Harvest ASA and changed its name to Mowi ASA in December 2018. Mowi ASA was founded in 1964 and is headquartered in Bergen, Norway.