Critical Review: Hf Foods Group (NASDAQ:HFFG) & CIMG (NASDAQ:IMG)

Hf Foods Group (NASDAQ:HFFG) and CIMG (NASDAQ:IMG) are both small-cap consumer staples companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, earnings, institutional ownership, valuation and risk.

Volatility and Risk

Hf Foods Group has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500. Comparatively, CIMG has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hf Foods Group	-2.90%	6.94%	2.72%
CIMG	N/A	-23.59%	-15.90%

Institutional and Insider Ownership

24.0% of Hf Foods Group shares are owned by institutional investors. Comparatively, 23.4% of CIMG shares are owned by institutional investors. 2.1% of Hf Foods Group shares are owned by insiders. Comparatively, 0.1% of CIMG shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Hf Foods Group and CIMG”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hf Foods Group	$1.23 billion	0.08	-$38.84 million	($0.68)	-2.65
CIMG	$10.30 million	0.21	-$4.88 million	($4.00)	-0.06

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

Analyst Ratings

This is a summary of recent ratings and price targets for Hf Foods Group and CIMG, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hf Foods Group	1	0	2	0	2.33
CIMG	1	0	0	0	1.00

Hf Foods Group currently has a consensus target price of $5.50, suggesting a potential upside of 205.56%. Given Hf Foods Group’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Hf Foods Group is more favorable than CIMG.

Summary

Hf Foods Group beats CIMG on 9 of the 14 factors compared between the two stocks.

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.

About CIMG

CIMG Inc. is a digital marketing, sales and distribution company for various consumer products with focuses on food and beverages. CIMG Inc., formerly known as NUZEE INC., is based in BEIJING.