Unilever (NYSE:UL – Get Free Report) and BBB Foods (NYSE:TBBB – Get Free Report) are both consumer staples companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, analyst recommendations, dividends, institutional ownership and profitability.
Earnings & Valuation
This table compares Unilever and BBB Foods”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Unilever | $65.76 billion | 2.19 | $6.22 billion | N/A | N/A |
| BBB Foods | $3.15 billion | 1.25 | $18.36 million | ($0.84) | -41.06 |
Analyst Ratings
This is a breakdown of current ratings and target prices for Unilever and BBB Foods, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Unilever | 3 | 1 | 6 | 2 | 2.58 |
| BBB Foods | 1 | 3 | 3 | 0 | 2.29 |
Unilever presently has a consensus price target of $71.11, suggesting a potential upside of 7.73%. BBB Foods has a consensus price target of $35.80, suggesting a potential upside of 3.80%. Given Unilever’s stronger consensus rating and higher possible upside, analysts clearly believe Unilever is more favorable than BBB Foods.
Risk and Volatility
Unilever has a beta of 0.36, meaning that its share price is 64% less volatile than the S&P 500. Comparatively, BBB Foods has a beta of -0.15, meaning that its share price is 115% less volatile than the S&P 500.
Profitability
This table compares Unilever and BBB Foods’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Unilever | N/A | N/A | N/A |
| BBB Foods | -2.61% | -44.56% | -7.47% |
Insider & Institutional Ownership
9.7% of Unilever shares are held by institutional investors. Comparatively, 8.4% of BBB Foods shares are held by institutional investors. 1.0% of Unilever shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Summary
Unilever beats BBB Foods on 13 of the 13 factors compared between the two stocks.
About Unilever
Unilever PLC operates as a fast-moving consumer goods company in the Asia Pacific, Africa, the Americas, and Europe. It operates through five segments: Beauty & Wellbeing, Personal Care, Home Care, Nutrition, and Ice Cream. The Beauty & Wellbeing segment engages in the sale of hair care products, such as shampoo, conditioner, and styling; skin care products including face, hand, and body moisturizer; and prestige beauty and health & wellbeing products consist of the vitamins, minerals, and supplements. The Personal Care segment offers skin cleansing products comprising soap and shower; deodorants; and oral care products, such as toothpaste, toothbrush, and mouthwash products. The Home Care segment is involved in the sale of fabric care products, including washing powders and liquids, and rinse conditioners; and fabric enhancers, and home and hygiene products. The Nutrition segment provides dressings products, such as mayonnaise and ketchup; sells scratch cooking aids consist of soups, bouillons, and seasonings; plant-based meat; beverages; and functional nutrition products, including Horlicks and Boost, as well as tea products. The Ice Cream segment offers ice cream products including in-home and out-of-home ice creams. The company provides its products under the AXE, Ben & Jerry's, Cif, Clear, Closeup, Comfort, Cornetto, Dermalogica, Domestos, Dove, Dove Men+Care, Hellmann's, Horlicks, Knorr, LUX, Lifebuoy, Liquid I.V., Magnum, Nutrafol, OMO, Paula's Choice, Pepsodent, Pond's, Rexona, Rexona, Sunlight, Sunsilk, Surf, TRESemmé, Vaseline, Wall's, Breyers, and Yasso brand names. Unilever PLC was founded in 1860 and is headquartered in London, the United Kingdom.
About BBB Foods
BBB Foods Inc., through its subsidiaries, operates a chain of grocery retail stores in Mexico. It offers household cleaning, personal hyenine, cosmetics and beauty, pharmacy, and general merchandise products, as well as jellies and desserts, foods and drinks, pet supplies, coffee, tea, chocolates, breads, dry and frozen foods, snacks and sweets, and toilet papers and napkins. The company also provides branded, private label, and spot products. It serves low-to-middle income households through online channels. BBB Foods Inc. was incorporated in 2004 and is headquartered in Mexico City, Mexico.
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