Critical Review: Jammin Java (JAMN) vs. Farmer Bros (FARM)

Jammin Java (OTCMKTS:JAMN) and Farmer Bros (NASDAQ:FARM) are both small-cap consumer staples companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, profitability and valuation.

Insider and Institutional Ownership

59.6% of Farmer Bros shares are held by institutional investors. 18.2% of Jammin Java shares are held by insiders. Comparatively, 10.9% of Farmer Bros shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Jammin Java and Farmer Bros’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Jammin Java $11.20 million 0.00 -$5.20 million N/A N/A
Farmer Bros $606.54 million 0.68 -$18.28 million $0.13 187.31

Jammin Java has higher earnings, but lower revenue than Farmer Bros.

Profitability

This table compares Jammin Java and Farmer Bros’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Jammin Java N/A N/A N/A
Farmer Bros -4.10% -0.57% -0.26%

Analyst Ratings

This is a breakdown of current ratings and price targets for Jammin Java and Farmer Bros, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Jammin Java 0 0 0 0 N/A
Farmer Bros 0 0 3 0 3.00

Farmer Bros has a consensus target price of $34.67, suggesting a potential upside of 42.37%. Given Farmer Bros’ higher possible upside, analysts plainly believe Farmer Bros is more favorable than Jammin Java.

Risk & Volatility

Jammin Java has a beta of -5.52, meaning that its stock price is 652% less volatile than the S&P 500. Comparatively, Farmer Bros has a beta of 0.22, meaning that its stock price is 78% less volatile than the S&P 500.

Summary

Farmer Bros beats Jammin Java on 6 of the 11 factors compared between the two stocks.

About Jammin Java

Jammin Java Corp. produces and sells roasted coffee under the Marley Coffee brand name in the United States and internationally. It distributes roasted coffee to grocery, retail, online, service, hospitality, office coffee service, and big box store industries. The company was formerly known as Marley Coffee Inc. and changed its name to Jammin Java Corp. in July 2009. Jammin Java Corp. was founded in 2004 and is headquartered in Denver, Colorado.

About Farmer Bros

Farmer Bros. Co. engages in the manufacture, wholesale, and distribution of coffee, tea, and culinary products in the United States. The company offers roast and ground coffee; frozen liquid coffee; flavored and unflavored iced and hot teas; culinary products, including gelatins and puddings, soup bases, dressings, gravy and sauce mixes, pancake and biscuit mixes, jellies and preserves, and coffee-related products, such as coffee filters, sugar, and creamers; spices; and other beverages comprising cappuccino, cocoa, granitas, and ready-to-drink cold brew and iced coffee. It sells its products under the Farmer Brothers, Artisan Collection by Farmer Brothers, Superior, Metropolitan, China Mist, Boyds, Direct Trade, Fair Trade Certified, Rainforest Alliance Certified, Un Momento, Collaborative Coffee, Cain's, and McGarvey brand names, as well as under various private labels. The company serves small independent restaurants, foodservice operators, restaurants, department and convenience store chains, hotels, casinos, healthcare facilities, gourmet coffee houses, and grocery chains. It distributes its products through direct-store-delivery network, and common carriers or third-party distributors, as well as Website. Farmer Bros. Co. was founded in 1912 and is headquartered in Northlake, Texas.

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