Farmer Bros. (NASDAQ:FARM – Get Free Report) and Top Wealth Group (NASDAQ:TWG – Get Free Report) are both small-cap retail/wholesale companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, dividends, risk, profitability, institutional ownership, valuation and analyst recommendations.
Profitability
This table compares Farmer Bros. and Top Wealth Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Farmer Bros. | -2.92% | -27.45% | -6.48% |
| Top Wealth Group | N/A | N/A | N/A |
Valuation and Earnings
This table compares Farmer Bros. and Top Wealth Group”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Farmer Bros. | $344.84 million | 0.14 | -$3.88 million | ($0.48) | -4.75 |
| Top Wealth Group | $14.38 million | 0.63 | $2.44 million | N/A | N/A |
Analyst Ratings
This is a breakdown of recent ratings and target prices for Farmer Bros. and Top Wealth Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Farmer Bros. | 0 | 0 | 2 | 0 | 3.00 |
| Top Wealth Group | 0 | 0 | 0 | 0 | 0.00 |
Farmer Bros. presently has a consensus target price of $5.25, suggesting a potential upside of 130.26%. Given Farmer Bros.’s stronger consensus rating and higher probable upside, equities analysts clearly believe Farmer Bros. is more favorable than Top Wealth Group.
Institutional & Insider Ownership
64.5% of Farmer Bros. shares are owned by institutional investors. 4.6% of Farmer Bros. shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Summary
Farmer Bros. beats Top Wealth Group on 6 of the 11 factors compared between the two stocks.
About Farmer Bros.
Farmer Bros. Co. engages in the roasting, wholesale, equipment servicing, and distribution of coffee, tea, and other allied products in the United States. The company offers roast and ground coffee; frozen liquid coffee; flavoured and unflavoured iced and hot teas; culinary products, including spices, pancake and biscuit mixes, gravy and sauce mixes, soup bases, dressings, and syrups and sauces, as well as coffee filters, cups, sugar, and creamers; and other beverages comprising cappuccino, cocoa, granitas, and other blender-based beverages and concentrated and ready-to-drink cold brew and iced coffee. It also engage installation, repair, and refurbishment services for an array of coffee, tea, and juice equipment. The company serves small independent restaurants, foodservice operators, and large institutional buyers and national account customers. The company distributes its products through direct-store-delivery network, and common carriers or third-party distributors, as well as website. The company was founded in 1912 and is headquartered in Northlake, Texas.
About Top Wealth Group
Top Wealth Group Holding Limited, through its subsidiaries, provides caviar and caviar-based gourmet products in Hong Kong and internationally. The company also trades in caviars; and offers its products under the Imperial Cristal Caviar brand name. It serves food and beverage related distributors. The company was founded in 2009 and is based in Sai Wan, Hong Kong. Top Wealth Group Holding Limited operates as a subsidiary of Winwin Development Group Limited.
Receive News & Ratings for Farmer Bros. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Farmer Bros. and related companies with MarketBeat.com's FREE daily email newsletter.
