Head-To-Head Review: Ajinomoto (OTCMKTS:AJINY) and Hf Foods Group (NASDAQ:HFFG)

Ajinomoto (OTCMKTS:AJINY) and Hf Foods Group (NASDAQ:HFFG) are both consumer staples companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, profitability, risk, earnings, institutional ownership, analyst recommendations and dividends.

Profitability

This table compares Ajinomoto and Hf Foods Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ajinomoto	N/A	N/A	N/A
Hf Foods Group	-3.71%	8.01%	3.33%

Analyst Recommendations

This is a summary of recent ratings and target prices for Ajinomoto and Hf Foods Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ajinomoto	0	1	0	2	3.33
Hf Foods Group	1	0	1	0	2.00

Hf Foods Group has a consensus price target of $7.00, indicating a potential upside of 219.63%. Given Hf Foods Group’s higher possible upside, analysts clearly believe Hf Foods Group is more favorable than Ajinomoto.

Insider & Institutional Ownership

24.0% of Hf Foods Group shares are held by institutional investors. 7.0% of Hf Foods Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Ajinomoto and Hf Foods Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ajinomoto	$10.05 billion	2.29	$463.80 million	$0.75	30.80
Hf Foods Group	$1.20 billion	0.10	-$48.51 million	($0.86)	-2.55

Ajinomoto has higher revenue and earnings than Hf Foods Group. Hf Foods Group is trading at a lower price-to-earnings ratio than Ajinomoto, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Ajinomoto has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500. Comparatively, Hf Foods Group has a beta of 0.42, indicating that its share price is 58% less volatile than the S&P 500.

Summary

Ajinomoto beats Hf Foods Group on 9 of the 15 factors compared between the two stocks.

About Ajinomoto

Ajinomoto Co., Inc. engages in the seasonings and foods, frozen foods, and healthcare and other businesses in Japan and internationally. The Seasonings and Foods segment offers sauces and seasoning products under the AJI-NO-MOTO, HON-DASHI, Cook Do, Ajinomoto KK Consommé, Pure Select Mayonnaise, Ros Dee, Masako, Aji-ngon, Sazón, Sajiku, and CRISPY FRY names; and solutions and ingredients for foodservice and processed food manufacturers, processed foods, and restaurants, as well as industrial, retail, and other applications. This segment also provides instant noodles under the Knorr Cup Soup and YumYum names; coffee beverages under the Birdy and Blendy brands; powdered drink under the Birdy 3in1 name; MAXIM brand products; Chyotto Zeitakuna Kohiten brand products; and gift sets and office supplies comprising coffee vending machines, tea servers, etc. The Frozen Foods segment offers Chinese dumplings, cooked rice, noodles, desserts, shumai, processed chicken, and other products under the AJINOMOTO FRESH FROZEN, Bernardi, FRED’S, Golden Tiger, José Olé, LingLing, POSADA, and TAI PEI brands. The Healthcare and Other segment provides amino acids for applications in various industries, such as pharmaceuticals and foods; contract development and manufacturing services for pharmaceutical intermediates and active ingredients, aseptic fill finish services, etc.; personal care ingredients; and medical foods, crop services, etc. This segment also offers Ajinomoto Build-up Film, an interlayer insulating material for semiconductor packages; fundamental foods under the Glyna and Amino Aile names; sports nutrition supplements under the amino VITAL brand; and functional materials, such as activated carbon, release paper, etc. Ajinomoto Co., Inc. was founded in 1909 and is headquartered in Tokyo, Japan.

About Hf Foods Group

HF Foods Group Inc., through its subsidiaries, markets and distributes Asian specialty food, seafood, fresh produce, frozen and dry food, and non-food products to Asian and Chinese restaurants, and other foodservice customers in the United States. The company offers seafood, including lobsters, shrimp, crabs, scallops, and fish; Asian specialty food items, including noodles, rice, dried mushrooms and beans, sauces and seasonings, and spring rolls, as well as canned products, such as preserved vegetables, bamboo shoots, and water chestnuts; and meat and poultry products, including beef, pork, chicken, and duck. It also provides fresh produce products, such as vegetables and fruits; commodities comprising oil, flour, sugar, and salt; and packaging and other items including take-out accessories. HF Foods Group Inc. is headquartered in Las Vegas, Nevada.