Freshpet (NASDAQ:FRPT – Get Free Report) and The Hain Celestial Group (NASDAQ:HAIN – Get Free Report) are both consumer staples companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, analyst recommendations, profitability, dividends and risk.
Institutional and Insider Ownership
97.0% of The Hain Celestial Group shares are held by institutional investors. 4.3% of Freshpet shares are held by company insiders. Comparatively, 1.7% of The Hain Celestial Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Freshpet and The Hain Celestial Group”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Freshpet | $1.10 billion | 2.65 | $139.14 million | $3.74 | 15.91 |
| The Hain Celestial Group | $1.56 billion | 0.03 | -$530.84 million | ($5.74) | -0.09 |
Freshpet has higher earnings, but lower revenue than The Hain Celestial Group. The Hain Celestial Group is trading at a lower price-to-earnings ratio than Freshpet, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Freshpet has a beta of 1.6, meaning that its stock price is 60% more volatile than the S&P 500. Comparatively, The Hain Celestial Group has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500.
Profitability
This table compares Freshpet and The Hain Celestial Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Freshpet | 17.63% | 6.22% | 4.19% |
| The Hain Celestial Group | -35.47% | -3.52% | -0.89% |
Analyst Ratings
This is a summary of current recommendations and price targets for Freshpet and The Hain Celestial Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Freshpet | 1 | 6 | 10 | 1 | 2.61 |
| The Hain Celestial Group | 2 | 6 | 0 | 0 | 1.75 |
Freshpet currently has a consensus target price of $74.25, suggesting a potential upside of 24.79%. The Hain Celestial Group has a consensus target price of $1.06, suggesting a potential upside of 108.19%. Given The Hain Celestial Group’s higher possible upside, analysts clearly believe The Hain Celestial Group is more favorable than Freshpet.
Summary
Freshpet beats The Hain Celestial Group on 12 of the 15 factors compared between the two stocks.
About Freshpet
Freshpet, Inc., together with its subsidiaries, manufactures, distributes, and markets natural fresh meals and treats for dogs and cats in the United States, Canada, and Europe. It sells dog food, cat food, and dog treats under the Freshpet brand name; and Dognation and Dog Joy labels through various classes of retail, including grocery, mass, club, pet specialty, and natural, as well as online. The company was incorporated in 2004 and is headquartered in Secaucus, New Jersey.
About The Hain Celestial Group
The Hain Celestial Group, Inc. manufactures, markets, and sells organic and natural products in United States, United Kingdom, Europe, and internationally. It operates through two segments: North America and International. The company offers infant formula; infant, toddler, and kids' food; plant-based beverages and frozen desserts, such as soy, rice, oat, and spelt; and condiments. It also provides cooking and culinary oils; cereal bars; fresh and aseptic soups; yogurts; and nut butters. In addition, the company offers hot-eating desserts, refrigerated and frozen plant-based meat-alternative products, jams, fruit spreads, jellies, honey, natural sweeteners, syrups, dessert sauces, and marmalade products, as well as other food products. Further, it provides snack products comprising potato, root vegetable and other exotic vegetable chips, straws, tortilla chips; and personal care products that include hand, skin, hair, and oral care products, as well as deodorants, baby food, sunscreens, and other products under the Alba Botanica, Avalon Organics, Earth's Best, JASON, Live Clean, and Queen Helene brands name. Additionally, the company offers herbal, green, black, wellness, rooibos, and chai tea under the Celestial Seasonings brand. It sells pantry products under the Spectrum, Spectrum Essentials, MaraNatha, Imagine broths, Hain Pure Foods, Health Valley, and Hollywood brands. It sells its products through specialty and natural food distributors, supermarkets, natural food stores, mass-market and e-commerce retailers, food service channels and clubs, and drug and convenience stores. The company was incorporated in 1993 and is headquartered in Hoboken, New Jersey.
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