Critical Analysis: WK Kellogg (NYSE:KLG) vs. Forafric Global (NASDAQ:AFRI)

Forafric Global (NASDAQ:AFRI) and WK Kellogg (NYSE:KLG) are both small-cap consumer staples companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, earnings, profitability and dividends.

Profitability

This table compares Forafric Global and WK Kellogg’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Forafric Global	N/A	N/A	N/A
WK Kellogg	4.45%	42.12%	6.42%

Institutional & Insider Ownership

5.5% of Forafric Global shares are held by institutional investors. Comparatively, 95.7% of WK Kellogg shares are held by institutional investors. 13.5% of Forafric Global shares are held by insiders. Comparatively, 0.9% of WK Kellogg shares are held by 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.

Earnings & Valuation

This table compares Forafric Global and WK Kellogg”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Forafric Global	$305.48 million	0.98	-$12.68 million	N/A	N/A
WK Kellogg	$2.72 billion	0.54	$110.00 million	$1.51	11.40

WK Kellogg has higher revenue and earnings than Forafric Global.

Analyst Recommendations

This is a summary of recent ratings and price targets for Forafric Global and WK Kellogg, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Forafric Global	0	0	0	0	N/A
WK Kellogg	4	5	0	0	1.56

WK Kellogg has a consensus target price of $17.67, suggesting a potential upside of 2.59%. Given WK Kellogg’s higher probable upside, analysts clearly believe WK Kellogg is more favorable than Forafric Global.

Summary

WK Kellogg beats Forafric Global on 7 of the 9 factors compared between the two stocks.

About Forafric Global

Forafric Global PLC engages in the purchase, storage, transport, processing, and sale of agricultural commodities and commodity products in Morocco, Burkina, Mali, Angola, and internationally. The company provides wheat flours and semolina; and secondary processing products, such as pasta and couscous under the TRIA and MayMouna brand names. It serves wholesale foods manufacturers and distributors. The company also exports its products to approximately 45 countries. Forafric Global PLC was founded in 1926 and is headquartered in Gibraltar.

About WK Kellogg

WK Kellogg Co operates as a food company in the United States, Canada, and the Caribbean. It manufactures, markets, and distributes ready-to-eat cereal products primarily under the Frosted Flakes, Special K, Froot Loops, Raisin Bran, Frosted Mini-Wheats, and Kashi brands. The company was formerly known as North America Cereal Co. and changed its name to WK Kellogg Co in March 2023. The company was incorporated in 2022 and is headquartered in Battle Creek, Michigan.