Top 15 Small-Cap Consumer Defensive Stocks Ranked by Marvin Scores
Marvin's rules picked 15 small Consumer Defensive companies. Perdoceo Education, Village Super Market and John B. Sanfilippo & Son have the highest Overall scores, but profit, growth and debt differ a lot across the list.
Consumer Defensive companies sell things people tend to need in any economy, such as groceries, packaged food, household goods and, in Marvin's grouping, education services. Their sales are often steadier than those of other sectors, though steady does not mean risk-free. This list covers the smaller companies in the sector.
The 15 stocks below are ordered by Marvin's Overall score. Education & Training Services, Grocery Stores and Packaged Foods each have the maximum number of picks allowed for one industry, so the list is not dominated by a single area.
Keep in mind that grocers usually run on thin margins, while education and branded product companies can show larger ones. Some stocks have missing figures, and each blurb notes where that limits the picture. This is a research starting point, not advice.
The list
How Marvin ranked these stocks
Marvin included companies above a minimum size and below a small-cap ceiling in the Consumer Defensive sector, then ranked them by Overall score, highest first, with at most 4 per industry. Scores are relative to each company's own industry, so a high score means a company compares well with its industry peers today. It does not mean it is better than every company in a different industry.
Companies above about $300 million in size, ranked by Marvin scores (0-100, relative to each company's own industry). The Consumer Defensive sector, highest Overall score first, among companies under about $2 billion in size; at most 4 per industry.
The stocks, one by one
Perdoceo Education Corporation PRDO
Perdoceo tops the list with an overall score of 95. Revenue grew 24.2% last fiscal year, and operating margin of 24.6% and free cash flow margin of 25.4% point to strong profitability. Caution: no debt figure is available, so its borrowing level is unclear.
Village Super Market, Inc. VLGEA
Village Super Market scores 92 overall. Revenue grew a modest 3.7%, and debt-to-equity of 0.61 suggests moderate borrowing. Caution: operating margin is thin at 2.7%, which is typical for grocers and leaves little cushion if costs rise.
John B. Sanfilippo & Son, Inc. JBSS
John B. Sanfilippo & Son earns 91 overall. Return on equity of 16.3% and debt-to-equity of 0.20 suggest decent returns with little borrowing. Caution: free cash flow margin is only 3.0%, so little of each sales dollar turns into spare cash.
Strategic Education, Inc. STRA
Strategic Education has an overall score of 89, with operating margin of 14.0% and free cash flow margin of 13.1%, both healthy. Caution: revenue growth was just 4.0% and return on equity is 8.2%, so expansion has been slow.
Seneca Foods Corporation SENEA
Seneca Foods scores 84 overall. Revenue grew 8.2% last fiscal year, and debt-to-equity is 0.31, a fairly modest debt level. Caution: margin and return figures are missing, so its profitability cannot be checked here.
Phoenix Education Partners, Inc PXED
Phoenix Education Partners has an overall score of 79 and a middling quality score of 64. Debt-to-equity is 0.37, a modest level. Caution: growth, margin and return figures are unavailable, so there is little detail on how profitable it is.
Weis Markets, Inc. WMK
Weis Markets has a strong quality score of 85 against an overall score of 77. Revenue grew 3.5%. Caution: free cash flow margin is very thin at 0.8%, and no debt figure is available.
BellRing Brands, Inc. BRBR
BellRing Brands scores 72 overall, with a quality score of 77. Revenue grew a brisk 16.1% last fiscal year. Caution: margin, return and debt figures are all unavailable, so profitability and borrowing cannot be judged.
Natural Grocers by Vitamin Cottage, Inc. NGVC
Natural Grocers scores 70 overall. Return on equity is a strong 19.9%. Caution: debt-to-equity of 1.35 is on the high side, and operating margin is only 4.7%, so profits are thin relative to sales.
Westrock Coffee Company, LLC WEST
Westrock Coffee grew revenue 39.8% and has an opportunity score of 96. Caution: its quality score is only 37, and an operating margin of -1.2% means the core business lost money last fiscal year.
Magnera Corp MAGN
Magnera grew revenue 46.5% and has an opportunity score of 95. Caution: its quality score is 41, return on equity is -11.0%, and debt-to-equity of 1.93 is high, so the weak spots are significant.
Turning Point Brands, Inc. TPB
Turning Point Brands pairs a gross margin of 59.2% and operating margin of 14.8% with revenue growth of 28.4%. Caution: free cash flow margin is only 3.9%, and its overall score is a middling 63.
Village Farms International, Inc. VFF
Village Farms has low debt, with debt-to-equity of 0.13, and revenue growth of 10.2%. Caution: free cash flow margin is slightly negative at -0.2%, its opportunity score is only 49, and operating margin is unavailable.
Ingles Markets, Incorporated IMKTA
Ingles Markets has modest debt, with debt-to-equity of 0.31, and operating margin of 2.6%, typical of a grocer. Caution: revenue growth was -5.4%, meaning sales shrank, and return on equity is a low 6.2%.
American Public Education, Inc. APEI
American Public Education shows gross margin of 55.9% and free cash flow margin of 10.5%, with return on equity of 14.5%. Caution: revenue growth was only 3.9%, and its overall score of 58 is the lowest on this list.
Common questions
What does Consumer Defensive mean?
It is a sector of companies that sell everyday necessities such as food, groceries and household items. Demand for these tends to hold up better when the economy slows, though individual companies can still struggle.
Why can small-cap stocks be riskier?
Smaller companies often have fewer products or customers and less financial cushion, and their shares can swing more in price. That is why it helps to check measures like debt and free cash flow alongside any score.
Why do some stocks have missing figures?
Not every company reports every measure in a form Marvin can use, so some figures are unavailable. When that happens, the blurb says so, and the score should be read with extra care.
Keep reading
- Top 15 Consumer Defensive Stocks With Low Debt
- Top 15 Consumer Defensive Stocks by Marvin Opportunity Score
- Top 15 Fastest-Growing Profitable Consumer Defensive Stocks
- Top 15 Consumer Defensive Stocks Right Now
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Marvin's scores (0-100) compare each company with others in its industry today. Growth and margin figures come from SEC filings. This is general information, not personal investment advice or a recommendation to buy or sell anything. Do your own research.