Hf Foods Group (NASDAQ:HFFG) versus General Mills (NYSE:GIS) Critical Review

Hf Foods Group (NASDAQ:HFFG) and General Mills (NYSE:GIS) are both consumer staples companies, but which is the superior business? We will compare the two companies based on the strength of their risk, profitability, dividends, institutional ownership, valuation, earnings and analyst recommendations.

Profitability

This table compares Hf Foods Group and General Mills’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hf Foods Group	-3.71%	8.01%	3.33%
General Mills	13.51%	21.41%	6.12%

Insider & Institutional Ownership

24.0% of Hf Foods Group shares are held by institutional investors. Comparatively, 75.7% of General Mills shares are held by institutional investors. 7.0% of Hf Foods Group shares are held by company insiders. Comparatively, 0.3% of General Mills shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Hf Foods Group has a beta of 0.42, indicating that its stock price is 58% less volatile than the S&P 500. Comparatively, General Mills has a beta of -0.05, indicating that its stock price is 105% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Hf Foods Group and General Mills, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hf Foods Group	1	0	1	0	2.00
General Mills	4	13	4	0	2.00

Hf Foods Group presently has a consensus target price of $7.00, indicating a potential upside of 233.33%. General Mills has a consensus target price of $50.42, indicating a potential upside of 15.75%. Given Hf Foods Group’s higher possible upside, equities analysts clearly believe Hf Foods Group is more favorable than General Mills.

Valuation & Earnings

This table compares Hf Foods Group and General Mills”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hf Foods Group	$1.20 billion	0.09	-$48.51 million	($0.86)	-2.44
General Mills	$19.49 billion	1.19	$2.30 billion	$4.65	9.37

General Mills has higher revenue and earnings than Hf Foods Group. Hf Foods Group is trading at a lower price-to-earnings ratio than General Mills, indicating that it is currently the more affordable of the two stocks.

Summary

General Mills beats Hf Foods Group on 10 of the 13 factors compared between the two stocks.

About Hf Foods Group

HF Foods Group Inc., through its subsidiaries, markets and distributes Asian specialty food, seafood, fresh produce, frozen and dry food, and non-food products to Asian and Chinese restaurants, and other foodservice customers in the United States. The company offers seafood, including lobsters, shrimp, crabs, scallops, and fish; Asian specialty food items, including noodles, rice, dried mushrooms and beans, sauces and seasonings, and spring rolls, as well as canned products, such as preserved vegetables, bamboo shoots, and water chestnuts; and meat and poultry products, including beef, pork, chicken, and duck. It also provides fresh produce products, such as vegetables and fruits; commodities comprising oil, flour, sugar, and salt; and packaging and other items including take-out accessories. HF Foods Group Inc. is headquartered in Las Vegas, Nevada.

About General Mills

General Mills, Inc. manufactures and markets branded consumer foods worldwide. The company operates through four segments: North America Retail; International; Pet; and North America Foodservice. It offers grain, ready-to-eat cereals, refrigerated yogurt, soup, meal kits, refrigerated and frozen dough products, dessert and baking mixes, bakery flour, frozen pizza and pizza snacks, snack bars, fruit and savory snacks, ice cream and frozen desserts, unbaked and fully baked frozen dough products, frozen hot snacks, ethnic meals, side dish mixes, frozen breakfast and entrees, nutrition bars, and frozen and shelf-stable vegetables. The company also manufactures and markets pet food products, including dog and cat food; and operates ice cream parlors. It markets its products under the Annie’s, Betty Crocker, Bisquick, Blue Buffalo, Bugles, Cascadian Farm, Cheerios, Chex, Cinnamon Toast Crunch, Cocoa Puffs, Cookie Crisp, Dunkaroos, Edgard & Cooper, Fiber One, Fruit by the Foot, Fruit Gushers, Fruit Roll-Ups, Gardetto’s, Gold Medal, Golden Grahams, Häagen-Dazs, Kitano, Kix, Lärabar, Latina, Lucky Charms, Muir Glen, Nature Valley, Nudges, Oatmeal Crisp, Old El Paso, Pillsbury, Progresso, Tastefuls, Total, Totino’s , Trix, True Chews, True Solutions, Wanchai Ferry, Wheaties, Wilderness, and Yoki brands. The company sells its products to grocery stores, mass merchandisers, membership stores, natural food chains, drug, dollar and discount chains, e-commerce retailers, commercial and noncommercial foodservice distributors and operators, restaurants, convenience stores, and pet specialty stores. General Mills, Inc. was founded in 1866 and is headquartered in Minneapolis, Minnesota.