Farmer Brothers Company (NASDAQ: FARM) and Keurig Green Mountain (NASDAQ:GMCR) are both retail/wholesale companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, earnings, profitabiliy, institutional ownership and dividends.

Insider & Institutional Ownership

50.5% of Farmer Brothers Company shares are held by institutional investors. 9.2% of Farmer Brothers Company shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Farmer Brothers Company and Keurig Green Mountain’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Farmer Brothers Company 19.84% 7.55% 3.73%
Keurig Green Mountain 8.30% 16.03% 10.57%

Earnings & Valuation

This table compares Farmer Brothers Company and Keurig Green Mountain’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Farmer Brothers Company $541.86 million 0.93 $40.08 million $6.45 4.71
Keurig Green Mountain N/A N/A N/A N/A N/A

Farmer Brothers Company has higher revenue and earnings than Keurig Green Mountain.

Analyst Recommendations

This is a summary of recent ratings and price targets for Farmer Brothers Company and Keurig Green Mountain, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Farmer Brothers Company 0 0 1 0 3.00
Keurig Green Mountain 0 0 0 0 N/A

Farmer Brothers Company presently has a consensus price target of $37.25, indicating a potential upside of 22.53%. Given Farmer Brothers Company’s higher possible upside, equities research analysts clearly believe Farmer Brothers Company is more favorable than Keurig Green Mountain.

Summary

Farmer Brothers Company beats Keurig Green Mountain on 6 of the 8 factors compared between the two stocks.

About Farmer Brothers Company

Farmer Bros. Co. is a national coffee roaster, wholesaler and distributor of coffee, tea and culinary products. The Company offers private brand and consumer-branded coffee products to small independent restaurants and foodservice operators, and institutional buyers. Its product line includes organic, Direct Trade, Direct Trade Verified Sustainable (DTVS) coffees and other coffees, iced and hot teas, cappuccino, spices, and baking/biscuit mixes. Its primary brands include Farmer Brothers, Artisan Collection by Farmer Brothers, Superior and Metropolitan. Its Artisan coffee products include Direct Trade, Fair Trade Certified, Rainforest Alliance Certified organic blends. It sells whole bean and roast and ground flavored and unflavored coffee products under the Un Momento, Collaborative Coffee, Cain’s and McGarvey brands at retail. Its roast and ground coffee products are sold in traditional packaging, including bags and fractional packages, as well as single-serve packaging.

About Keurig Green Mountain

Keurig Green Mountain, Inc. is a personal beverage system company. The Company is engaged in producing specialty coffee, coffeemakers, teas and other beverages in the United States and Canada. It operates through two segments: Domestic and Canada. Its Domestic segment includes all operations and immaterial operations related to international expansion in the United States, and the Canada segment includes all Canadian operations. Its products include pods, brewers and accessories, and other products and royalties. Its Domestic segment sells brewers, accessories, and sources, produces and sells coffee, hot cocoa, teas and other beverages in its pods (portion packs), and coffee in other packaging. Its Canada segment sells brewers, accessories, and sources, produces and sells coffee and teas and other beverages in pods. It sells coffee in traditional packaging under various brands to retailers, including supermarkets, restaurants and other markets through its Website.

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