Head-To-Head Contrast: Armanino Foods of Distinction (OTCMKTS:AMNF) vs. BAB (OTCMKTS:BABB)

BAB (OTCMKTS:BABB) and Armanino Foods of Distinction (OTCMKTS:AMNF) are both small-cap consumer staples companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, valuation and profitability.

Earnings & Valuation

This table compares BAB and Armanino Foods of Distinction”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BAB	$3.44 million	2.09	$560,000.00	$0.08	12.38
Armanino Foods of Distinction	$69.40 million	4.84	$14.61 million	$0.55	19.64

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

Analyst Ratings

This is a summary of recent recommendations for BAB and Armanino Foods of Distinction, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BAB	0	0	0	0	0.00
Armanino Foods of Distinction	0	1	2	0	2.67

Armanino Foods of Distinction has a consensus target price of $15.00, suggesting a potential upside of 38.89%. Given Armanino Foods of Distinction’s stronger consensus rating and higher possible upside, analysts clearly believe Armanino Foods of Distinction is more favorable than BAB.

Dividends

BAB pays an annual dividend of $0.04 per share and has a dividend yield of 4.0%. Armanino Foods of Distinction pays an annual dividend of $0.20 per share and has a dividend yield of 1.9%. BAB pays out 50.0% of its earnings in the form of a dividend. Armanino Foods of Distinction pays out 36.4% 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 & Risk

BAB has a beta of 0.2, meaning that its share price is 80% less volatile than the S&P 500. Comparatively, Armanino Foods of Distinction has a beta of 0.09, meaning that its share price is 91% less volatile than the S&P 500.

Insider and Institutional Ownership

0.1% of Armanino Foods of Distinction shares are owned by institutional investors. 33.7% of BAB shares are owned by company insiders. Comparatively, 30.2% of Armanino Foods of Distinction shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares BAB and Armanino Foods of Distinction’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BAB	16.25%	16.64%	11.66%
Armanino Foods of Distinction	23.65%	48.19%	33.53%

Summary

Armanino Foods of Distinction beats BAB on 13 of the 16 factors compared between the two stocks.

About BAB

BAB, Inc. franchises and licenses bagel and muffin retail units under the Big Apple Bagels (BAB), My Favorite Muffin (MFM), and SweetDuet (SD) trade names in the United States. It's BAB franchised brand includes daily baked bagels, flavored cream cheeses, premium coffees, gourmet bagel sandwiches, and other related products; and MFM brand comprises various freshly baked muffins and coffees, as well as units operating as My Favorite Muffin Your All Day Bakery Café features specialty bagel sandwiches and related products. The company's SD brand includes frozen yogurt products. BAB, Inc. was founded in 1993 and is based in Deerfield, Illinois.

About Armanino Foods of Distinction

Armanino Foods of Distinction, Inc. produces and markets frozen food products in the United States. The company offers gourmet beef, Italian style beef and pork, and smoked turkey meatballs; grated parmesan and 3 cheese blend cheese; and various pesto, such as basil, artichoke, cilantro, dried tomato and garlic, roasted garlic, roasted red bell pepper, and southwest chipotle. It also provides frozen pasta, which includes beef cannelloni, cheese manicotti, cheese stuffed shells, cheese tortellini; pasta sheets, potato gnocchi, and tricolor cheese tortellini, as well as beef, butternut squash, four cheese, cheese and spinach, and wild mushroom ravioli; and various sauces, comprising creamy garlic, alfresco, Bolognese, chimichurri, harissa, and romesco. The company offers its products under the Armanino brand. It markets its products through a network of food brokers and sells to retail and foodservice distributors, club-type stores, and industrial accounts. The company was founded in 1978 and is based in Hayward, California.