J. M. Smucker (NYSE:SJM – Get Free Report) and Mondelez International (NASDAQ:MDLZ – Get Free Report) are both large-cap consumer staples companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, risk, institutional ownership, valuation, dividends and earnings.
Dividends
J. M. Smucker pays an annual dividend of $4.40 per share and has a dividend yield of 4.4%. Mondelez International pays an annual dividend of $2.00 per share and has a dividend yield of 3.6%. J. M. Smucker pays out -39.2% of its earnings in the form of a dividend. Mondelez International pays out 74.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. J. M. Smucker has increased its dividend for 27 consecutive years and Mondelez International has increased its dividend for 13 consecutive years. J. M. Smucker is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Analyst Recommendations
This is a summary of recent recommendations for J. M. Smucker and Mondelez International, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| J. M. Smucker | 1 | 9 | 7 | 1 | 2.44 |
| Mondelez International | 1 | 7 | 14 | 0 | 2.59 |
Volatility & Risk
J. M. Smucker has a beta of 0.22, suggesting that its stock price is 78% less volatile than the S&P 500. Comparatively, Mondelez International has a beta of 0.39, suggesting that its stock price is 61% less volatile than the S&P 500.
Valuation & Earnings
This table compares J. M. Smucker and Mondelez International”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| J. M. Smucker | $8.73 billion | 1.22 | -$1.23 billion | ($11.22) | -8.91 |
| Mondelez International | $36.44 billion | 1.94 | $4.61 billion | $2.67 | 20.56 |
Mondelez International has higher revenue and earnings than J. M. Smucker. J. M. Smucker is trading at a lower price-to-earnings ratio than Mondelez International, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
81.7% of J. M. Smucker shares are owned by institutional investors. Comparatively, 78.3% of Mondelez International shares are owned by institutional investors. 2.2% of J. M. Smucker shares are owned by insiders. Comparatively, 0.4% of Mondelez International shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Profitability
This table compares J. M. Smucker and Mondelez International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| J. M. Smucker | -13.61% | 15.26% | 5.34% |
| Mondelez International | 9.38% | 14.16% | 5.33% |
Summary
Mondelez International beats J. M. Smucker on 10 of the 18 factors compared between the two stocks.
About J. M. Smucker
The J. M. Smucker Company manufactures and markets branded food and beverage products worldwide. It operates in three segments: U.S. Retail Pet Foods, U.S. Retail Coffee, and U.S. Retail Consumer Foods. The company offers mainstream roast, ground, single serve, and premium coffee; peanut butter and specialty spreads; fruit spreads, toppings, and syrups; jelly products; nut mix products; shortening and oils; frozen sandwiches and snacks; pet food and pet snacks; and foodservice hot beverage, foodservice portion control, and flour products, as well as dog and cat food, frozen handheld products, juices and beverages, and baking mixes and ingredients. It provides its products under the Meow Mix, Milk-Bone, Pup-Peroni, Canine Carry Outs, Folgers, Café Bustelo, Dunkin', Folgers, Café Bustelo, 1850, Jif, Smucker's, Smucker's Uncrustables, Robin Hood, and Five Roses. The company sells its products through direct sales and brokers to food retailers, club stores, discount and dollar stores, online retailers, pet specialty stores, natural foods stores and distributors, drug stores, military commissaries, and mass merchandisers. Smucker Company was founded in 1897 and is headquartered in Orrville, Ohio.
About Mondelez International
Mondelez International, Inc., through its subsidiaries, manufactures, markets, and sells snack food and beverage products in the Latin America, North America, Asia, the Middle East, Africa, and Europe. It provides biscuits and baked snacks, including cookies, crackers, salted snacks, snack bars, and cakes and pastries; chocolates; and gums and candies, as well as various cheese and grocery, and powdered beverage products. The company's brand portfolio includes Oreo, Ritz, LU, CLIF Bar, and Tate's Bake Shop biscuits and baked snacks, as well as Cadbury Dairy Milk, Milka, and Toblerone chocolate. It serves supermarket chains, wholesalers, supercenters, club stores, mass merchandisers, distributors, convenience stores, gasoline stations, drug stores, value stores, and other retail food outlets through direct store delivery, company-owned and satellite warehouses, distribution centers, third party distributors, and other facilities, as well as through independent sales offices and agents. The company also sells products directly to businesses and consumers through e-retail platforms, retailer digital platforms, as well as through its direct-to-consumer websites and social media platforms. Mondelez International, Inc. was formerly known as Kraft Foods Inc. and changed its name to Mondelez International, Inc. in October 2012. The company was incorporated in 2000 and is headquartered in Chicago, Illinois.
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