Petiq (PETQ) and Blue Buffalo Pet Products (BUFF) Critical Analysis
Petiq (NASDAQ: PETQ) and Blue Buffalo Pet Products (NASDAQ:BUFF) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, valuation, profitability, earnings, risk, institutional ownership and analyst recommendations.
Earnings & Valuation
This table compares Petiq and Blue Buffalo Pet Products’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Blue Buffalo Pet Products||$1.18 billion||4.27||$280.74 million||$0.71||36.01|
Blue Buffalo Pet Products has higher revenue and earnings than Petiq.
This table compares Petiq and Blue Buffalo Pet Products’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Blue Buffalo Pet Products||12.13%||98.02%||24.56%|
Insider and Institutional Ownership
87.1% of Blue Buffalo Pet Products shares are owned by institutional investors. 7.7% of Blue Buffalo Pet Products shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This is a breakdown of current ratings and price targets for Petiq and Blue Buffalo Pet Products, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Blue Buffalo Pet Products||1||2||6||1||2.70|
Petiq presently has a consensus price target of $27.00, suggesting a potential upside of 12.31%. Blue Buffalo Pet Products has a consensus price target of $27.38, suggesting a potential upside of 7.06%. Given Petiq’s stronger consensus rating and higher possible upside, research analysts clearly believe Petiq is more favorable than Blue Buffalo Pet Products.
Blue Buffalo Pet Products beats Petiq on 8 of the 10 factors compared between the two stocks.
PetIQ, Inc. is engaged in manufacturing and distributing pet medication and health and wellness products to the retail channel in the United States. The Company provides retail stores with third-party brands, including Frontline Plus, Heartgard Plus, PetAction Plus, Advecta II, Pet Lock Plus, Pet Lock Max, TruProfen and Heartshield. It distributes the products through veterinarian, retail and e-commerce channels. The Company offers its products in a range of categories, including Rx Medications, OTC Medications and Supplies, and Health and Wellness Products. Rx Medications offering includes heartworm preventatives, arthritis, thyroid, diabetes and pain treatments, antibiotics and other specialty medications. The Company manufactures Heart Shield Plus, version of Heartgard Plus, which prevents heartworm infection in dogs. The Company also manufactures TruProfen, the version of Rimadyl, which treats arthritis in dogs. OTC Medications and Supplies include flea and tick control products.
About Blue Buffalo Pet Products
Blue Buffalo Pet Products, Inc. (BBPP) is a holding company. The Company operates as a pet food company. The Company, through its subsidiaries, develops, produces, markets and sells pet food under product lines, including BLUE Life Protection Formula, BLUE Wilderness, BLUE Basics, BLUE Freedom and BLUE Natural Veterinary Diet lines. Its product lines of pet food include various product types for dogs and cats. The Company categorizes its products as dry foods, and wet foods, treats and other products. It has a product portfolio across various product types, including diet types, breed sizes for dogs, life stages, flavors, product functions, and textures and cuts for wet foods. BLUE Wilderness is a high-meat, high-protein and grain-free ancestral feeding line. BLUE Basics is a line of limited ingredient diet products for pets with food sensitivities. BLUE Freedom is a grain-free line. BLUE Natural Veterinary Diet is a line of Therapeutic diets for pets, offered through veterinarians.
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