Financial Comparison: Top Wealth Group (NASDAQ:TWG) versus Medifast (NYSE:MED)

Top Wealth Group (NASDAQ:TWG) and Medifast (NYSE:MED) are both small-cap consumer staples companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.

Valuation and Earnings

This table compares Top Wealth Group and Medifast”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Top Wealth Group	$14.38 million	0.78	$2.44 million	N/A	N/A
Medifast	$602.46 million	0.25	$99.42 million	$0.18	76.78

Medifast has higher revenue and earnings than Top Wealth Group.

Profitability

This table compares Top Wealth Group and Medifast’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Top Wealth Group	N/A	N/A	N/A
Medifast	0.35%	10.64%	7.57%

Insider and Institutional Ownership

95.5% of Medifast shares are owned by institutional investors. 2.5% of Medifast shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Top Wealth Group and Medifast, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Top Wealth Group	0	0	0	0	0.00
Medifast	0	1	0	0	2.00

Medifast has a consensus price target of $16.50, suggesting a potential upside of 19.39%. Given Medifast’s stronger consensus rating and higher probable upside, analysts plainly believe Medifast is more favorable than Top Wealth Group.

Summary

Medifast beats Top Wealth Group on 9 of the 10 factors compared between the two stocks.

About Top Wealth Group

Top Wealth Group Holding Limited, through its subsidiaries, provides caviar and caviar-based gourmet products in Hong Kong and internationally. The company also trades in caviars; and offers its products under the Imperial Cristal Caviar brand name. It serves food and beverage related distributors. The company was founded in 2009 and is based in Sai Wan, Hong Kong. Top Wealth Group Holding Limited operates as a subsidiary of Winwin Development Group Limited.

About Medifast

Medifast, Inc., through its subsidiaries, engages in the manufacture and sale of weight loss, weight management, and healthy living products in the United States and the Asia-Pacific. It offers bars, puffs, cereal, crunchers, drinks, hearty choices, oatmeal, pancakes, pudding, soft serve, shakes, smoothies, soft bakes, and soups under the OPTAVIA, OPTAVIA ACTIVE, and Optimal Health brand names. The company markets its products through point-of-sale transactions, as well as through ecommerce platform. Medifast, Inc. was founded in 1980 and is headquartered in Baltimore, Maryland.