Head-To-Head Review: Vita Coco (NASDAQ:COCO) versus Westrock Coffee (NASDAQ:WEST)

Vita Coco (NASDAQ:COCO) and Westrock Coffee (NASDAQ:WEST) are both small-cap consumer staples companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, earnings, institutional ownership, risk, dividends and valuation.

Risk and Volatility

Vita Coco has a beta of 0.23, meaning that its share price is 77% less volatile than the S&P 500. Comparatively, Westrock Coffee has a beta of 0.39, meaning that its share price is 61% less volatile than the S&P 500.

Insider & Institutional Ownership

88.5% of Vita Coco shares are held by institutional investors. Comparatively, 45.1% of Westrock Coffee shares are held by institutional investors. 34.2% of Vita Coco shares are held by insiders. Comparatively, 42.1% of Westrock Coffee shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Vita Coco and Westrock Coffee’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vita Coco	11.05%	26.42%	18.96%
Westrock Coffee	-5.37%	-18.20%	-1.93%

Valuation & Earnings

This table compares Vita Coco and Westrock Coffee”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vita Coco	$500.02 million	3.24	$46.63 million	$0.92	31.02
Westrock Coffee	$864.71 million	0.61	-$34.58 million	($0.70)	-8.50

Vita Coco has higher earnings, but lower revenue than Westrock Coffee. Westrock Coffee is trading at a lower price-to-earnings ratio than Vita Coco, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings for Vita Coco and Westrock Coffee, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vita Coco	0	3	4	0	2.57
Westrock Coffee	0	0	4	0	3.00

Vita Coco currently has a consensus price target of $30.17, indicating a potential upside of 5.70%. Westrock Coffee has a consensus price target of $12.75, indicating a potential upside of 114.29%. Given Westrock Coffee’s stronger consensus rating and higher possible upside, analysts plainly believe Westrock Coffee is more favorable than Vita Coco.

Summary

Vita Coco beats Westrock Coffee on 8 of the 13 factors compared between the two stocks.

About Vita Coco

The Vita Coco Company, Inc. develops, markets, and distributes coconut water products under the Vita Coco brand name in the United States, Canada, Europe, the Middle East, Africa, and the Asia Pacific. The company offers coconut oil and coconut milk; juice; Runa, a plant-based energy drink; packaged water under the Ever & Ever brand name; and PWR LIFT, a protein-infused fitness drink. It also provides private label coconut water and oil to retailers. It distributes its products through club, food, drug, mass, convenience, e-commerce, and foodservice channels. The company was formerly known as All Market Inc. and changed its name to The Vita Coco Company, Inc. in September 2021.The Vita Coco Company, Inc. was incorporated in 2004 and is headquartered in New York, New York.

About Westrock Coffee

Westrock Coffee Company, LLC operates as an integrated coffee, tea, flavors, extracts, and ingredients solutions provider in the United States and internationally. It operates through two segments, Beverage Solutions, and Sustainable Sourcing & Traceability (SS&T). The Beverage Solutions segment provides various packaging, including branded and private label coffee in bags, fractional packs, and single serve cups, as well as extract solutions for applications in cold brew and ready-to-drink offerings. The SS&T segment engages in delivery and settlement of forward sales contracts for green coffee. The company offers coffee sourcing, supply chain management, product development, roasting, packaging, and distribution services to the retail, food service and restaurant, convenience store and travel center, non-commercial account, CPG, and hospitality industries. Westrock Coffee Company, LLC was founded in 2009 and is headquartered in Little Rock, Arkansas.