Freshpet, Inc. (FRPT) vs Ingredion Incorporated (INGR)

Freshpet, Inc. and Ingredion Incorporated are both Packaged Foods companies. Ingredion Incorporated is the larger, with a market value of $6.1B against $3.3B — 1.9× the size. Ingredion Incorporated trades at the lower P/E: 10.5× against 16.0×. Freshpet, Inc. grew revenue faster over the last twelve months: 12.8% against −1.38%. Freshpet, Inc. has the higher net margin (17.3% vs 8.21%) and the lower return on invested capital (4.55% vs 10.0%). Across the 22 metrics below, Ingredion Incorporated leads on 13 and Freshpet, Inc. on 9.

Valuation

Metric FRPT INGR Packaged Foods median
P/E 16.02 10.53 13.41
P/S 2.78 0.86 0.62
P/B 2.65 1.37 1.47
Price to free cash flow 53.70 12.86 8.73
EV/EBITDA 17.58 6.49 8.26
EV/Sales 2.91 0.97 0.91
Earnings yield 6.24% 9.50% 0.68%
Free cash flow yield 1.86% 7.78% 5.21%

Profitability

Metric FRPT INGR Packaged Foods median
Gross margin 41.37% 23.73% 27.54%
Operating margin 8.10% 11.92% 0.00%
Net margin 17.28% 8.21% 0.00%
Free cash flow margin 5.19% 6.68% 2.37%
Return on equity 17.62% 13.54% 0.00%
Return on assets 11.76% 7.47% 0.00%
Return on invested capital 4.55% 10.04% 0.00%

Growth

Metric FRPT INGR Packaged Foods median
Revenue growth (TTM) 12.77% (1.38%) 5.69%
EPS growth (last fiscal year) 183.87% 15.14% 4.57%
Revenue growth, 5-year CAGR 28.16% 3.81% 3.81%
Net income growth, 5-year CAGR 0.00% 15.94% 0.00%

Health

Metric FRPT INGR Packaged Foods median
Debt to equity 0.34 0.39 0.24
Current ratio 6.05 2.80 1.68
Net debt to EBITDA 0.88 0.61 0.84

Dividend

Metric FRPT INGR Packaged Foods median
Dividend yield — 3.36% 4.06%
Payout ratio — 0.36 0.57

Size

Metric FRPT INGR Packaged Foods median
Market cap 3.25b 6.13b 263.30m

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