Analyzing Freshpet (NASDAQ:FRPT) & Kerry Group (OTCMKTS:KRYAY)
by Mitch Edgeman · The Markets DailyFreshpet (NASDAQ:FRPT – Get Free Report) and Kerry Group (OTCMKTS:KRYAY – Get Free Report) are both consumer staples companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Freshpet and Kerry Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Freshpet | 1 | 8 | 9 | 0 | 2.44 |
| Kerry Group | 0 | 1 | 3 | 0 | 2.75 |
Freshpet presently has a consensus target price of $76.00, suggesting a potential upside of 27.95%. Given Freshpet’s higher possible upside, research analysts clearly believe Freshpet is more favorable than Kerry Group.
Institutional and Insider Ownership
0.2% of Kerry Group shares are owned by institutional investors. 4.4% of Freshpet shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Freshpet and Kerry Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Freshpet | 12.63% | 6.93% | 4.64% |
| Kerry Group | N/A | N/A | N/A |
Risk & Volatility
Freshpet has a beta of 1.78, suggesting that its stock price is 78% more volatile than the S&P 500. Comparatively, Kerry Group has a beta of 0.66, suggesting that its stock price is 34% less volatile than the S&P 500.
Earnings and Valuation
This table compares Freshpet and Kerry Group”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Freshpet | $1.10 billion | 2.64 | $139.14 million | $2.57 | 23.11 |
| Kerry Group | $7.64 billion | 1.64 | $745.03 million | N/A | N/A |
Kerry Group has higher revenue and earnings than Freshpet.
Summary
Freshpet beats Kerry Group on 8 of the 12 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 Kerry Group
Kerry Group plc, together with its subsidiaries, provides taste and nutrition solutions. The company operates in two segments, Taste & Nutrition, and Dairy Ireland. The Taste & Nutrition segment offers taste and nutrition solutions for the food, beverage, and pharmaceutical markets. The Dairy Ireland segment provides value-add dairy ingredients and consumer products, including functional proteins and nutritional bases. It operates in Ireland, rest of Europe, the Americas, the Asia Pacific, the Middle East, and Africa. Kerry Group plc was founded in 1972 and is headquartered in Tralee, Ireland.