ARKO (NASDAQ:ARKO) & Village Farms International (NASDAQ:VFF) Head to Head Survey

Village Farms International (NASDAQ:VFF) and ARKO (NASDAQ:ARKO) are both small-cap consumer staples companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.

Volatility and Risk

Village Farms International has a beta of 2.27, suggesting that its share price is 127% more volatile than the S&P 500. Comparatively, ARKO has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500.

Institutional & Insider Ownership

12.1% of Village Farms International shares are held by institutional investors. Comparatively, 78.3% of ARKO shares are held by institutional investors. 12.6% of Village Farms International shares are held by insiders. Comparatively, 22.5% of ARKO shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Village Farms International and ARKO’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Village Farms International	3.42%	-2.24%	-1.50%
ARKO	0.18%	5.50%	0.41%

Analyst Ratings

This is a summary of current ratings and target prices for Village Farms International and ARKO, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Village Farms International	0	1	2	1	3.00
ARKO	1	3	1	1	2.33

ARKO has a consensus price target of $7.13, indicating a potential upside of 62.67%. Given ARKO’s higher possible upside, analysts clearly believe ARKO is more favorable than Village Farms International.

Valuation & Earnings

This table compares Village Farms International and ARKO”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Village Farms International	$340.18 million	1.18	-$35.85 million	$0.18	19.83
ARKO	$7.84 billion	0.06	$20.84 million	$0.11	39.82

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

Summary

ARKO beats Village Farms International on 8 of the 14 factors compared between the two stocks.

About Village Farms International

Village Farms International, Inc., together with its subsidiaries, produces, markets, and sells greenhouse-grown tomatoes, bell peppers, and cucumbers in North America. It operates through four segments: Produce, Cannabis-Canada, Cannabis-U.S., and Energy. The company also produces and supplies cannabis products to other licensed providers and provincial governments in Canada and internationally; develops and sells cannabinoid-based health and wellness products, including ingestible, edibles, and topical applications; and produces power. It markets and distributes its products under the Village Farms brand name to retail supermarkets and fresh food distribution companies, as well as products produced under exclusive and non-exclusive arrangements from greenhouse supply partners. The company was formerly known as Village Farms Canada Inc. and changed its name to Village Farms International, Inc. in December 2009. Village Farms International, Inc. was founded in 1989 and is headquartered in Delta, Canada.

About ARKO

Arko Corp. operates convenience stores in the United States. It operates through Retail, Wholesale, Fleet Fueling, and GPMP segments. The Retail segment engages in the sale of fuel and merchandise to retail consumers. Its Wholesale segment supplies fuel to third-party dealers and consignment agents. The Fleet Fueling segment supplies fuel to proprietary and third-party cardlock, and issuance of proprietary fuel cards. Its GPMP segment supplies fuel to retail and wholesale segments. The company is based in Richmond, Virginia.