Beyond Meat is the hottest IPO on Wall Street this year. Even after the recent correction, its shares have gained 169.37% in the last three months, beating Bitcoin, which has gained 95.42% over the same period.
Beyond Meat vs Bitcoin Prices
Koyfin
Beyond Meat, Inc., is a food company that manufactures, markets, and sells plant-based meat products in the United States and internationally.
An alternative to meat, plant-based meat products are seen as helping to save the world and societies from a number of problems, ranging from obesity, cholesterol, and environmental decay. That’s why they have become the new consumer craze among younger generations, who are the most sensitive to these problems.
As has been the case with previous consumer crazes, vegan products have fueled an investor frenzy on Wall Street for publicly traded companies that stand to profit from this trend, like Beyond Meat.
And that’s what has happened with Bitcoin, a digital product which to some holds the promise of saving the world from the tyranny of big governments.
“Bitcoin and Beyond Meat have one thing in common: their meteoric surge has been fueled by investor frenzy to make quick gains without fully understanding the risks involved,” says Haris Anwar, analyst at financial markets platform Investing.com.“There is no doubt that Beyond Meat has a great product in a growing market for vegan products, but investors should remember that the company isn’t yet profitable and it will soon face growing competition. Impossible Foods, for example, is going nationwide with Burger King offering its Impossible Whopper, while Tyson Foods is soon coming up with its own vegetable-based meat.”
Indeed, Beyond Meat has a profit margin of -26.73%, compared to a 5.05% of Tyson, which trades at a PE of 12.16—see table.
| Company | Forward PE | Profit Margin | Revenue Growth | PEG Ratio (5 yr expected) |
| Beyond Meat | 4,698 | -26.73 | — | 3.81 |
| Tyson | 12.16 | 5.05 | 6.90 | 2.50 |
Source: Finance.yahoo.com 7/27/2019
That’s why Anwar recommends investors to be cautious about Beyond Meat points right now. “Beyond Meat’s latest earnings show that the company is still in its early stages and it needs to spend big to establish a defendable moat in a burgeoning industry,” he says.“Its stock’s 11% plunge last Tuesday is also a reminder that it can’t be just one-way traffic. At some point, investors will have to realize that the rally in Beyond Meat’s stock has gone too far.”