Financial Review: UTZ Brands (NYSE:UTZ) & Medifast (NYSE:MED)

UTZ Brands (NYSE:UTZ) and Medifast (NYSE:MED) are both consumer staples companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.

Volatility and Risk

UTZ Brands has a beta of 0.43, indicating that its stock price is 57% less volatile than the S&P 500. Comparatively, Medifast has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500.

Insider and Institutional Ownership

58.6% of UTZ Brands shares are owned by institutional investors. 5.5% of Medifast shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for UTZ Brands and Medifast, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
UTZ Brands 0 1 1 0 2.50
Medifast 0 3 1 0 2.25

UTZ Brands currently has a consensus target price of $18.00, suggesting a potential upside of 0.00%. Medifast has a consensus target price of $163.33, suggesting a potential downside of 8.61%. Given UTZ Brands’ stronger consensus rating and higher probable upside, research analysts plainly believe UTZ Brands is more favorable than Medifast.

Valuation & Earnings

This table compares UTZ Brands and Medifast’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
UTZ Brands N/A N/A $7.97 million N/A N/A
Medifast $713.67 million 2.95 $77.92 million $5.96 29.99

Medifast has higher revenue and earnings than UTZ Brands.

Profitability

This table compares UTZ Brands and Medifast’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
UTZ Brands N/A 0.71% 0.69%
Medifast 10.04% 68.55% 36.74%

Summary

Medifast beats UTZ Brands on 7 of the 10 factors compared between the two stocks.

UTZ Brands Company Profile

UTZ Brands Inc does not have significant operations. It intends to effect a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses. The company focuses on searching for a business in the consumer goods industry and related sectors.

Medifast Company Profile

Medifast, Inc., through its subsidiaries, manufactures and distributes weight loss, weight management, healthy living products, and other consumable health and nutritional products. It offers bars, bites, pretzels, puffs, oatmeal and cereal crunch products, drinks, hearty choices, pancakes, puddings, soft serves, shakes, smoothies, soft bakes, and soups under the Medifast, OPTAVIA, Thrive by Medifast, Optimal Health by OPTAVIA, Flavors of Home, and Essential 1 brands. The company sells its products through various channels, including the Internet, call centers, independent health advisors, franchise weight loss clinics, and direct consumer marketing. The company was founded in 1980 and is headquartered in Baltimore, Maryland.

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