Comparing Australian Oilseeds (NASDAQ:COOT) & Armanino Foods of Distinction (OTCMKTS:AMNF)

Armanino Foods of Distinction (OTCMKTS:AMNF) and Australian Oilseeds (NASDAQ:COOT) 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 earnings, dividends, valuation, profitability, institutional ownership, risk and analyst recommendations.

Risk & Volatility

Armanino Foods of Distinction has a beta of 0.09, indicating that its stock price is 91% less volatile than the S&P 500. Comparatively, Australian Oilseeds has a beta of 0.07, indicating that its stock price is 93% less volatile than the S&P 500.

Profitability

This table compares Armanino Foods of Distinction and Australian Oilseeds’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Armanino Foods of Distinction	23.65%	48.19%	33.53%
Australian Oilseeds	-2.98%	-104.19%	-4.15%

Institutional & Insider Ownership

0.1% of Armanino Foods of Distinction shares are owned by institutional investors. Comparatively, 13.0% of Australian Oilseeds shares are owned by institutional investors. 30.2% of Armanino Foods of Distinction shares are owned by company insiders. Comparatively, 69.1% of Australian Oilseeds shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Armanino Foods of Distinction and Australian Oilseeds, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Armanino Foods of Distinction	0	1	1	0	2.50
Australian Oilseeds	1	0	0	0	1.00

Armanino Foods of Distinction currently has a consensus target price of $15.00, indicating a potential upside of 33.81%. Given Armanino Foods of Distinction’s stronger consensus rating and higher probable upside, research analysts plainly believe Armanino Foods of Distinction is more favorable than Australian Oilseeds.

Earnings and Valuation

This table compares Armanino Foods of Distinction and Australian Oilseeds”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Armanino Foods of Distinction	$69.40 million	5.02	$14.61 million	$0.55	20.38
Australian Oilseeds	$27.01 million	0.60	-$840,000.00	($0.04)	-14.46

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

Summary

Armanino Foods of Distinction beats Australian Oilseeds on 12 of the 14 factors compared between the two stocks.

About Armanino Foods of Distinction

Armanino Foods of Distinction, Inc. produces and markets frozen food products in the United States. The company offers gourmet beef, Italian style beef and pork, and smoked turkey meatballs; grated parmesan and 3 cheese blend cheese; and various pesto, such as basil, artichoke, cilantro, dried tomato and garlic, roasted garlic, roasted red bell pepper, and southwest chipotle. It also provides frozen pasta, which includes beef cannelloni, cheese manicotti, cheese stuffed shells, cheese tortellini; pasta sheets, potato gnocchi, and tricolor cheese tortellini, as well as beef, butternut squash, four cheese, cheese and spinach, and wild mushroom ravioli; and various sauces, comprising creamy garlic, alfresco, Bolognese, chimichurri, harissa, and romesco. The company offers its products under the Armanino brand. It markets its products through a network of food brokers and sells to retail and foodservice distributors, club-type stores, and industrial accounts. The company was founded in 1978 and is based in Hayward, California.

About Australian Oilseeds

Australian Oilseeds Holdings Ltd. engages in the manufacture and sale oil seeds through its subsidiaries. It focuses on acquiring, engaging in a share exchange, share reconstruction, and amalgamation with, purchasing all or substantially all the assets of, entering contractual arrangements with, or engaging in any other similar business combination with one or more businesses or entities. The company was founded on December 29, 2022 and is headquartered in Cootamundra, Australia.