Cresud S.A.C.I.F. y A. (NASDAQ:CRESY) vs. Coffee (NASDAQ:JVA) Head-To-Head Review

Coffee (NASDAQ:JVA) and Cresud S.A.C.I.F. y A. (NASDAQ:CRESY) are both small-cap consumer staples companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, valuation, risk, analyst recommendations and dividends.

Profitability

This table compares Coffee and Cresud S.A.C.I.F. y A.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Coffee	4.85%	16.20%	11.61%
Cresud S.A.C.I.F. y A.	12.93%	6.18%	2.63%

Institutional & Insider Ownership

12.9% of Cresud S.A.C.I.F. y A. shares are held by institutional investors. 21.9% of Coffee shares are held by insiders. Comparatively, 36.2% of Cresud S.A.C.I.F. y A. shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Dividends

Coffee pays an annual dividend of $0.08 per share and has a dividend yield of 2.0%. Cresud S.A.C.I.F. y A. pays an annual dividend of $0.60 per share and has a dividend yield of 4.7%. Coffee pays out 9.5% of its earnings in the form of a dividend. Cresud S.A.C.I.F. y A. pays out 33.5% 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 1.44, suggesting that its share price is 44% more volatile than the S&P 500. Comparatively, Cresud S.A.C.I.F. y A. has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500.

Valuation & Earnings

This table compares Coffee and Cresud S.A.C.I.F. y A.”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Coffee	$96.28 million	0.24	$1.40 million	$0.84	4.81
Cresud S.A.C.I.F. y A.	$1,379.36 billion	0.00	$125.38 million	$1.79	7.10

Cresud S.A.C.I.F. y A. has higher revenue and earnings than Coffee. Coffee is trading at a lower price-to-earnings ratio than Cresud S.A.C.I.F. y A., indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations and price targets for Coffee and Cresud S.A.C.I.F. y A., as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Coffee	0	2	0	0	2.00
Cresud S.A.C.I.F. y A.	0	1	0	0	2.00

Coffee currently has a consensus target price of $9.50, suggesting a potential upside of 135.15%. Given Coffee’s higher probable upside, research analysts plainly believe Coffee is more favorable than Cresud S.A.C.I.F. y A..

Summary

Cresud S.A.C.I.F. y A. beats Coffee on 8 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 Cresud S.A.C.I.F. y A.

Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria, an agricultural company, engages in the production of agricultural commodities in Brazil and other Latin American countries. The company operates through Agricultural Business, and Business Urban Properties and Investments segments. It is also involved in the management, development, and ownership of shopping malls, office buildings, and hotels; sale of grain derivatives, such as flour and oil; production and sale of crops, such as soybean, sugarcane, wheat, corn, oilseed, and sunflower, as well as sorghum and peanuts; and breeding, purchasing, and/or fattening of cattle for sale to slaughterhouses and supermarkets. In addition, it leases its farms to third parties for agriculture, cattle breeding, and seed production; and offers agricultural services. The company was incorporated in 1936 and is headquartered in Buenos Aires, Argentina.