Analyzing Blue Buffalo Pet Products (BUFF) and Simply Good Foods (SMPL)

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Blue Buffalo Pet Products (NASDAQ: BUFF) and Simply Good Foods (NASDAQ:SMPL) are both consumer staples companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, dividends, analyst recommendations and valuation.

Profitability

This table compares Blue Buffalo Pet Products and Simply Good Foods’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Blue Buffalo Pet Products 15.18% 77.83% 24.37%
Simply Good Foods 9.60% 2.72% 1.59%

Valuation and Earnings

This table compares Blue Buffalo Pet Products and Simply Good Foods’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Blue Buffalo Pet Products $1.27 billion 6.14 $193.52 million $0.95 42.11
Simply Good Foods $396.17 million 2.68 -$2.03 million N/A N/A

Blue Buffalo Pet Products has higher revenue and earnings than Simply Good Foods.

Institutional and Insider Ownership

94.6% of Blue Buffalo Pet Products shares are held by institutional investors. Comparatively, 85.2% of Simply Good Foods shares are held by institutional investors. 7.7% of Blue Buffalo Pet Products shares are held by company insiders. Comparatively, 4.6% of Simply Good Foods shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Blue Buffalo Pet Products and Simply Good Foods, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Blue Buffalo Pet Products 1 7 4 0 2.25
Simply Good Foods 0 0 6 0 3.00

Blue Buffalo Pet Products currently has a consensus price target of $35.10, suggesting a potential downside of 12.25%. Simply Good Foods has a consensus price target of $15.80, suggesting a potential upside of 4.98%. Given Simply Good Foods’ stronger consensus rating and higher probable upside, analysts plainly believe Simply Good Foods is more favorable than Blue Buffalo Pet Products.

Summary

Blue Buffalo Pet Products beats Simply Good Foods on 8 of the 11 factors compared between the two stocks.

Blue Buffalo Pet Products Company Profile

Blue Buffalo Pet Products, Inc., through its subsidiary, Blue Buffalo Company, Ltd., operates as a pet food company in the United States, Canada, Japan, and Mexico. It develops, produces, markets, and sells dog and cat food under the BLUE Life Protection Formula, BLUE Wilderness, BLUE Basics, BLUE Freedom, and BLUE Natural Veterinary Diet lines. The company sells its products to retail partners and distributors in specialty channels, including national pet superstore chains, regional pet store chains, neighborhood pet stores, farm and feed stores, e-commerce retailers, military outlets, hardware stores, and veterinary clinics and hospitals. Blue Buffalo Pet Products, Inc. was founded in 2002 and is headquartered in Wilton, Connecticut.

Simply Good Foods Company Profile

The Simply Good Foods Company develops, markets, and sells branded nutritional foods and snack products in North America and internationally. The company markets nutrition bars, ready-to-drink shakes, snacks, and confectionery products under the Atkins, SimplyProtein, Atkins Endulge, and Atkins Harvest Trail brand names. The company is headquartered in Denver, Colorado.

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