Financial Analysis: GLG Life Tech (OTCMKTS:GLGLF) versus Armanino Foods of Distinction (OTCMKTS:AMNF)

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

Analyst Recommendations

This is a breakdown of current recommendations for GLG Life Tech and Armanino Foods of Distinction, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GLG Life Tech	0	0	0	0	0.00
Armanino Foods of Distinction	0	1	1	1	3.00

Armanino Foods of Distinction has a consensus target price of $15.00, indicating a potential upside of 47.10%. Given Armanino Foods of Distinction’s stronger consensus rating and higher possible upside, analysts clearly believe Armanino Foods of Distinction is more favorable than GLG Life Tech.

Earnings and Valuation

This table compares GLG Life Tech and Armanino Foods of Distinction”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GLG Life Tech	$7.35 million	0.00	$8.60 million	$0.19	N/A
Armanino Foods of Distinction	$76.10 million	4.11	$18.80 million	$0.62	16.45

Armanino Foods of Distinction has higher revenue and earnings than GLG Life Tech. GLG Life Tech 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.

Volatility and Risk

GLG Life Tech has a beta of 2.08, indicating that its stock price is 108% more volatile than the S&P 500. Comparatively, Armanino Foods of Distinction has a beta of 0.08, indicating that its stock price is 92% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GLG Life Tech	108.75%	N/A	-657.42%
Armanino Foods of Distinction	25.06%	47.01%	35.12%

Insider and Institutional Ownership

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

Summary

Armanino Foods of Distinction beats GLG Life Tech on 11 of the 13 factors compared between the two stocks.

About GLG Life Tech

GLG Life Tech Corporation researches for, develops, grows, refines, and produces natural sweeteners extracted from the stevia plant and monk fruit in Canada and internationally. It also offers P-Pro Plus, a pea protein product; REB M GOLD, a bioconverted Rebaudioside M and Rebaudioside D. sweetener; and natural ingredients. It serves in the food and beverage industry. The company was formerly known as GLG Life Tech Limited and changed its name to GLG Life Tech Corporation in March 2007. GLG Life Tech Corporation was incorporated in 1998 and is headquartered in Richmond, Canada.

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.