Medifast (NYSE:MED) and WANT WANT CHINA/ADR (OTCMKTS:WWNTY) are both consumer staples companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.
Risk and Volatility
Medifast has a beta of 0.54, indicating that its stock price is 46% less volatile than the S&P 500. Comparatively, WANT WANT CHINA/ADR has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500.
This table compares Medifast and WANT WANT CHINA/ADR’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Medifast||$301.56 million||6.34||$27.72 million||$2.29||69.82|
|WANT WANT CHINA/ADR||$2.97 billion||3.25||$529.63 million||N/A||N/A|
WANT WANT CHINA/ADR has higher revenue and earnings than Medifast.
Insider and Institutional Ownership
88.1% of Medifast shares are held by institutional investors. 4.3% of Medifast shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Medifast pays an annual dividend of $1.92 per share and has a dividend yield of 1.2%. WANT WANT CHINA/ADR pays an annual dividend of $2.06 per share and has a dividend yield of 5.3%. Medifast pays out 83.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This is a breakdown of current ratings and price targets for Medifast and WANT WANT CHINA/ADR, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|WANT WANT CHINA/ADR||0||0||0||0||N/A|
Medifast presently has a consensus target price of $249.00, indicating a potential upside of 55.73%. Given Medifast’s higher probable upside, analysts plainly believe Medifast is more favorable than WANT WANT CHINA/ADR.
This table compares Medifast and WANT WANT CHINA/ADR’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|WANT WANT CHINA/ADR||N/A||N/A||N/A|
Medifast beats WANT WANT CHINA/ADR on 8 of the 13 factors compared between the two stocks.
Medifast, Inc., through its subsidiaries, manufactures and distributes weight loss, weight management, healthy living products, and other consumable health and nutritional products. It offers bars, bites, pretzels, puffs, oatmeal and cereal crunch products, drinks, hearty choices, pancakes, puddings, soft serves, shakes, smoothies, soft bakes, and soups under the Medifast, OPTAVIA, Thrive by Medifast, Optimal Health by OPTAVIA, Flavors of Home, and Essential 1 brands. The company sells its products through various channels, including the Internet, call centers, independent health advisors, medical professionals, franchise weight loss clinics, and direct consumer marketing. As of December 31, 2017, it operated 16 franchised Medifast weight control centers in Arizona, California, Louisiana, Minnesota, and Wisconsin; and 18 reseller locations in California, Maryland, and Pennsylvania. The company was founded in 1980 and is headquartered in Baltimore, Maryland.
About WANT WANT CHINA/ADR
Want Want China Holdings Limited, an investment holding company, manufactures, distributes, and sells food and beverages. The company operates through four segments: Rice Crackers, Dairy Products and Beverages, Snack Foods, and Other Products. It offers sugar coated crackers, savoury crackers and fried crackers, and gift packs; flavoured milk, room temperature yogurt, yogurt drinks, ready-to-drink coffee, juice drinks, sports drinks, herbal tea, and milk powder; candies, popsicles, ball cakes and jellies, beans, nuts, and other snacks; and wine and other food products. The company is also involved in the trade of food and beverages, raw materials, machineries, etc.; sale of chemical materials and plastic films/bags; manufacture and sale of machineries and related services; manufacture of dehydrating, deoxidating, preservative, and related products; manufacture and sale of packaging materials, packing bags, carton boxes, and cans; provision of consultancy and information services; dairy farming and milk production activities; trading of food and beverages and related activities online; processing and sale of rice and oil products; and manufacture of rice flour. It serves customers through a sales and distribution network primarily in the People's Republic of China, Taiwan, Japan, Hong Kong, Singapore, the United States, and Canada; and countries in the Southeast Asia and Europe. Want Want China Holdings Limited was founded in 1962 and is headquartered in Tsim Sha Tsui, Hong Kong.
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