Cramer noted that while the markets have soared, both Hain and Annie's have stumbled of late. Annie's was saddled with allegations of metal filings in their pizzas on Jan. 22, while Hain suffered from allegations of pesticides in its teas on Feb. 21. While both allegations were later found to be false, the damage done to both stocks still lingers.
While both are good companies, said Cramer, he's going with Hain as the way to play organic foods, as that stock is only up 5% for the year compared to 19% for Annie's.
He noted that Annie's trades at a full 39 times earnings with a 22% growth rate, not leaving much upside as his rule is to never pay a multiple that's more than twice the growth rate for a stock. Hain, however, trades at just under 20 times earnings and it has a growth rate of 17%, giving the stock much more room to run.
Cramer said there's also a lot to like about Hain other than its valuation. The company has aggressive expansion plans, both here and abroad, and is taking market share in just about every category in which it competes. Given that investors can pick up shares of Hain on the cheap, Cramer said he's a buyer.