Financial Review: Westrock Coffee (WEST) vs. Its Competitors

Westrock Coffee (NASDAQ:WEST) is one of 34 publicly-traded companies in the “Beverages” industry, but how does it compare to its peers? We will compare Westrock Coffee to similar companies based on the strength of its valuation, institutional ownership, profitability, dividends, earnings, risk and analyst recommendations.

Analyst Ratings

This is a summary of recent recommendations for Westrock Coffee and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Westrock Coffee	0	0	0	0	N/A
Westrock Coffee Competitors	180	1249	1595	35	2.49

As a group, “Beverages” companies have a potential upside of 6.89%. Given Westrock Coffee’s peers higher possible upside, analysts plainly believe Westrock Coffee has less favorable growth aspects than its peers.

Insider & Institutional Ownership

46.4% of Westrock Coffee shares are held by institutional investors. Comparatively, 41.0% of shares of all “Beverages” companies are held by institutional investors. 42.1% of Westrock Coffee shares are held by company insiders. Comparatively, 27.0% of shares of all “Beverages” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Risk & Volatility

Westrock Coffee has a beta of 0.24, indicating that its stock price is 76% less volatile than the S&P 500. Comparatively, Westrock Coffee’s peers have a beta of 0.47, indicating that their average stock price is 53% less volatile than the S&P 500.

Profitability

This table compares Westrock Coffee and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Westrock Coffee	-8.58%	-310.68%	-3.60%
Westrock Coffee Competitors	-18.17%	-886.82%	-12.13%

Earnings and Valuation

This table compares Westrock Coffee and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Westrock Coffee	$867.87 million	-$55.19 million	-7.51
Westrock Coffee Competitors	$11.41 billion	$1.67 billion	58.73

Westrock Coffee’s peers have higher revenue and earnings than Westrock Coffee. Westrock Coffee is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Westrock Coffee Company Profile

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 and Traceability. The company provides 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. 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. The Sustainable Sourcing and Traceability segment engages in delivery and settlement of forward sales contracts for green coffee. The company was founded in 2009 and is based in Little Rock, Arkansas.