Where Food Comes From (NASDAQ:WFCF – Get Rating) and Qumu (NASDAQ:QUMU – Get Rating) are both small-cap consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, analyst recommendations, profitability, institutional ownership, dividends and valuation.
Institutional and Insider Ownership
5.1% of Where Food Comes From shares are held by institutional investors. Comparatively, 36.6% of Qumu shares are held by institutional investors. 53.9% of Where Food Comes From shares are held by company insiders. Comparatively, 14.5% of Qumu shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
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Valuation & Earnings
This table compares Where Food Comes From and Qumu's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
| Where Food Comes From | $21.93 million | 3.79 | $2.96 million | $0.37 | 37.76 |
| Qumu | $24.02 million | 0.67 | -$16.36 million | ($0.70) | -1.28 |
Where Food Comes From has higher earnings, but lower revenue than Qumu. Qumu is trading at a lower price-to-earnings ratio than Where Food Comes From, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Where Food Comes From has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, Qumu has a beta of 1.65, meaning that its share price is 65% more volatile than the S&P 500.
Profitability
This table compares Where Food Comes From and Qumu's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
| Where Food Comes From | 9.15% | 16.55% | 10.90% |
| Qumu | -58.17% | -172.41% | -44.17% |
Analyst Ratings
This is a breakdown of recent ratings and price targets for Where Food Comes From and Qumu, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
| Where Food Comes From | 0 | 0 | 0 | 0 | N/A |
| Qumu | 0 | 1 | 0 | 0 | 2.00 |
Qumu has a consensus target price of $0.90, indicating a potential upside of 0.70%. Given Qumu's higher probable upside, analysts plainly believe Qumu is more favorable than Where Food Comes From.
Summary
Where Food Comes From beats Qumu on 8 of the 12 factors compared between the two stocks.
About Where Food Comes From
(Get Rating)
Where Food Comes From, Inc., together with its subsidiaries, provides verification and certification solutions for the agriculture, livestock, and food industries in the United States. The company operates through Verification and Certification, and Software Sales and Related Consulting segments. It conducts on-site and desk audits to verify that claims made about livestock, crops, and other food products are accurate, as well as offers Where Food Comes From Source Verified retail and restaurant labeling program, which connects consumers directly to the source of the food they purchase through product labeling, and web-based information sharing and education. The company also offers sustainability programs, compliance management, and software-as-a-service; maintenance, support, and software-related consulting services; and web-hosting services, as well as sells hardware. It serves beef and pork packers, organic producers and processors, and specialty retail chains. The company was formerly known as Integrated Management Information, Inc. and changed its name to Where Food Comes From, Inc. in December 2012. Where Food Comes From, Inc. was founded in 1996 and is headquartered in Castle Rock, Colorado.
About Qumu
(Get Rating)
Qumu Corporation provides tools to create, manage, secure, distribute, and measure live and on-demand video content for the enterprises. It offers perpetual software licenses, cloud-hosted software as a service, or term software license basis; and sells third-party hardware appliances, as well as provides maintenance and support, and professional and training services. The company's platform provides video capture services; video content management services, such as creation and editing, analytics, automated workflows, security and access control, and speech search; and extensions and add-ons. It serves the banking, finance and insurance, manufacturing, services and consulting, telecom and technology, and biotech and health care markets, as well as government customers through direct sales and channel partners in North America, Europe, and Asia. The company was formerly known as Rimage Corporation and changed its name to Qumu Corporation in September 2013. Qumu Corporation was founded in 1978 and is headquartered in Minneapolis, Minnesota.
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