Reviewing US Foods (NYSE:USFD) and HF Foods Group (NYSE:HFFG)

US Foods (NYSE:USFD) and HF Foods Group (NASDAQ:HFFG) are both consumer staples companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, earnings, institutional ownership and risk.

Analyst Recommendations

This is a breakdown of recent ratings for US Foods and HF Foods Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
US Foods 0 3 4 0 2.57
HF Foods Group 0 0 0 0 N/A

US Foods presently has a consensus target price of $41.86, indicating a potential upside of 2.54%. Given US Foods’ higher possible upside, analysts clearly believe US Foods is more favorable than HF Foods Group.

Risk and Volatility

US Foods has a beta of 0.49, indicating that its share price is 51% less volatile than the S&P 500. Comparatively, HF Foods Group has a beta of 2.15, indicating that its share price is 115% more volatile than the S&P 500.

Valuation and Earnings

This table compares US Foods and HF Foods Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
US Foods $24.18 billion 0.37 $407.00 million $2.03 20.11
HF Foods Group $291.01 million 1.29 $6.35 million N/A N/A

US Foods has higher revenue and earnings than HF Foods Group.

Profitability

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

Net Margins Return on Equity Return on Assets
US Foods 1.63% 14.15% 4.99%
HF Foods Group 2.25% 18.91% 7.62%

Insider and Institutional Ownership

95.5% of US Foods shares are owned by institutional investors. Comparatively, 4.4% of HF Foods Group shares are owned by institutional investors. 0.8% of US Foods shares are owned by company insiders. Comparatively, 30.3% of HF Foods Group shares are owned 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.

Summary

HF Foods Group beats US Foods on 7 of the 12 factors compared between the two stocks.

About US Foods

US Foods Holding Corp., through its subsidiary, US Foods, Inc., markets and distributes fresh, frozen, and dry food and non-food products to foodservice customers in the United States. Its customers include independently owned single and multi-unit restaurants, regional concepts, national restaurant chains, hospitals, nursing homes, hotels and motels, country clubs, government and military organizations, colleges and universities, and retail locations. The company was formerly known as USF Holding Corp. and changed its name to US Foods Holding Corp. in February 2016. US Foods Holding Corp. was incorporated in 2007 and is headquartered in Rosemont, Illinois.

About HF Foods Group

HF Foods Group Inc. markets and distributes fresh produces, frozen and dry food products, and non-food products primarily to Asian/Chinese restaurants and other food service customers in the Southeast region of the United States. It also offers design and printing, and trucking services, as well as Chinese herb supplements. In addition, the company operates as a real estate holding company. HF Foods Group Inc. is headquartered in Greensboro, North Carolina.

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