Tofutti Brands (OTCMKTS:TOFB) & Vital Farms (NASDAQ:VITL) Financial Review

Vital Farms (NASDAQ:VITL) and Tofutti Brands (OTCMKTS:TOFB) are both small-cap consumer staples companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, risk, dividends, institutional ownership and profitability.

Profitability

This table compares Vital Farms and Tofutti Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vital Farms	8.73%	20.69%	14.66%
Tofutti Brands	-7.93%	-22.08%	-16.26%

Analyst Ratings

This is a summary of recent ratings for Vital Farms and Tofutti Brands, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vital Farms	1	3	9	0	2.62
Tofutti Brands	0	0	0	0	0.00

Vital Farms presently has a consensus price target of $45.00, suggesting a potential upside of 228.71%. Given Vital Farms’ stronger consensus rating and higher possible upside, analysts plainly believe Vital Farms is more favorable than Tofutti Brands.

Risk & Volatility

Vital Farms has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500. Comparatively, Tofutti Brands has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500.

Institutional and Insider Ownership

98.6% of Vital Farms shares are owned by institutional investors. Comparatively, 5.1% of Tofutti Brands shares are owned by institutional investors. 21.3% of Vital Farms shares are owned by insiders. Comparatively, 9.3% of Tofutti Brands shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Vital Farms and Tofutti Brands”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vital Farms	$759.44 million	0.81	$66.28 million	$1.44	9.51
Tofutti Brands	$8.82 million	0.46	-$860,000.00	($0.13)	-6.04

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

Summary

Vital Farms beats Tofutti Brands on 13 of the 13 factors compared between the two stocks.

About Vital Farms

Vital Farms, Inc., a food company, provides pasture-raised products in the United States. It offers shell eggs, butter, hard-boiled eggs, and liquid whole eggs. The company was founded in 2007 and is headquartered in Austin, Texas.

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.