Financial Review: Vital Farms (NASDAQ:VITL) and Input Capital (OTCMKTS:INPCF)

Vital Farms (NASDAQ:VITL) and Input Capital (OTCMKTS:INPCF) are both consumer staples companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, risk, valuation, analyst recommendations and institutional ownership.

Earnings & Valuation

This table compares Vital Farms and Input Capital’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vital Farms	$471.86 million	2.36	$25.57 million	$0.58	45.90
Input Capital	N/A	N/A	N/A	($0.03)	-53.51

Vital Farms has higher revenue and earnings than Input Capital. Input Capital is trading at a lower price-to-earnings ratio than Vital Farms, 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 Vital Farms and Input Capital, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vital Farms	0	2	5	0	2.71
Input Capital	0	0	0	0	N/A

Vital Farms presently has a consensus target price of $20.20, suggesting a potential downside of 24.96%. Given Vital Farms’ higher possible upside, equities analysts clearly believe Vital Farms is more favorable than Input Capital.

Profitability

This table compares Vital Farms and Input Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vital Farms	5.42%	14.22%	10.35%
Input Capital	N/A	N/A	N/A

Insider and Institutional Ownership

98.6% of Vital Farms shares are held by institutional investors. Comparatively, 5.7% of Input Capital shares are held by institutional investors. 30.2% of Vital Farms shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Vital Farms beats Input Capital on 10 of the 10 factors compared between the two stocks.

About Vital Farms

Vital Farms, Inc., a food company, provides pasture-raised products in the United States. It offers shell eggs, butter, hard-boiled eggs, and liquid whole eggs. The company was founded in 2007 and is headquartered in Austin, Texas.

About Input Capital

SSC Security Services Corp. provides physical and cyber security services to corporate and public sector clients across Canada. The company was founded by Douglas Allan Emsley, Brad Farquhar, and Gord A. Nystuen in 2012 and is headquartered in Regina, Canada.