Critical Review: Mama’s Creations (NASDAQ:MAMA) versus Kraft Heinz (NASDAQ:KHC)

Mama’s Creations (NASDAQ:MAMAGet Free Report) and Kraft Heinz (NASDAQ:KHCGet Free Report) are both consumer staples companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, dividends, risk and earnings.

Earnings and Valuation

This table compares Mama’s Creations and Kraft Heinz”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mama’s Creations $171.71 million 3.66 $5.29 million $0.12 128.67
Kraft Heinz $24.99 billion 1.12 -$5.85 billion ($4.86) -4.84

Mama’s Creations has higher earnings, but lower revenue than Kraft Heinz. Kraft Heinz is trading at a lower price-to-earnings ratio than Mama’s Creations, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Mama’s Creations and Kraft Heinz’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mama’s Creations 3.06% 15.31% 8.85%
Kraft Heinz -23.05% 7.26% 3.70%

Risk & Volatility

Mama’s Creations has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500. Comparatively, Kraft Heinz has a beta of 0.06, meaning that its share price is 94% less volatile than the S&P 500.

Insider and Institutional Ownership

45.2% of Mama’s Creations shares are owned by institutional investors. Comparatively, 78.2% of Kraft Heinz shares are owned by institutional investors. 6.5% of Mama’s Creations shares are owned by insiders. Comparatively, 0.2% of Kraft Heinz shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for Mama’s Creations and Kraft Heinz, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mama’s Creations 0 1 5 0 2.83
Kraft Heinz 4 15 0 1 1.90

Mama’s Creations presently has a consensus price target of $18.80, suggesting a potential upside of 21.76%. Kraft Heinz has a consensus price target of $23.06, suggesting a potential downside of 1.99%. Given Mama’s Creations’ stronger consensus rating and higher probable upside, research analysts plainly believe Mama’s Creations is more favorable than Kraft Heinz.

Summary

Mama’s Creations beats Kraft Heinz on 12 of the 15 factors compared between the two stocks.

About Mama’s Creations

(Get Free Report)

Mama’s Creations, Inc. engages in the marketing, manufacturing, and distribution of beef meatballs with sauce, turkey meatballs with sauce, beef meat loaf, sausage and peppers, chicken parmesan, and other similar meats and sauces. Its products include beef meatballs, turkey meatballs, stuffed meatballs, lasagna roll ups, retail ready meals, bulk deli, single-size pasta bowls, and packaged refrigerated products. Its brands include MamaMancini’s, Creative Salads, and The Olive Branch. The company was founded by Daniel Dougherty on July 22, 2009 and is headquartered in East Rutherford, NJ.

About Kraft Heinz

(Get Free Report)

The Kraft Heinz Company, together with its subsidiaries, manufactures and markets food and beverage products in North America and internationally. Its products include condiments and sauces, cheese and dairy products, meals, meats, refreshment beverages, coffee, and other grocery products under the Kraft, Oscar Mayer, Heinz, Philadelphia, Lunchables, Velveeta, Ore-Ida, Maxwell House, Kool-Aid, Jell-O, Heinz, ABC, Master, Quero, Kraft, Golden Circle, Wattie's, Pudliszki, and Plasmon brands. It sells its products through its own sales organizations, as well as through independent brokers, agents, and distributors to chain, wholesale, cooperative, and independent grocery accounts; convenience, value, and club stores; pharmacies and drug stores; mass merchants; foodservice distributors; institutions, including hotels, restaurants, bakeries, hospitals, health care facilities, and government agencies; and online through various e-commerce platforms and retailers. The company was formerly known as H.J. Heinz Holding Corporation and changed its name to The Kraft Heinz Company in July 2015. The Kraft Heinz Company was founded in 1869 and is based in Pittsburgh, Pennsylvania.

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