Head to Head Review: JBS (OTCMKTS:JBSAY) vs. J & J Snack Foods (NASDAQ:JJSF)

JBS (OTCMKTS:JBSAY) and J & J Snack Foods (NASDAQ:JJSF) are both consumer staples companies, but which is the better business? We will compare the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, dividends, analyst recommendations and risk.

Risk & Volatility

JBS has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500. Comparatively, J & J Snack Foods has a beta of 0.4, indicating that its stock price is 60% less volatile than the S&P 500.

Profitability

This table compares JBS and J & J Snack Foods’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
JBS	2.43%	24.07%	5.01%
J & J Snack Foods	3.23%	8.93%	6.07%

Analyst Recommendations

This is a breakdown of current ratings and target prices for JBS and J & J Snack Foods, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JBS	0	0	3	0	3.00
J & J Snack Foods	1	1	2	0	2.25

JBS presently has a consensus target price of $18.33, indicating a potential upside of 26.96%. J & J Snack Foods has a consensus target price of $110.50, indicating a potential upside of 36.20%. Given J & J Snack Foods’ higher possible upside, analysts plainly believe J & J Snack Foods is more favorable than JBS.

Dividends

JBS pays an annual dividend of $1.05 per share and has a dividend yield of 7.3%. J & J Snack Foods pays an annual dividend of $3.20 per share and has a dividend yield of 3.9%. JBS pays out 57.1% of its earnings in the form of a dividend. J & J Snack Foods pays out 123.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. J & J Snack Foods has increased its dividend for 20 consecutive years. JBS is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares JBS and J & J Snack Foods”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JBS	$77.18 billion	0.21	$1.77 billion	$1.84	7.85
J & J Snack Foods	$1.58 billion	0.96	$65.60 million	$2.60	31.20

JBS has higher revenue and earnings than J & J Snack Foods. JBS is trading at a lower price-to-earnings ratio than J & J Snack Foods, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

0.1% of JBS shares are owned by institutional investors. Comparatively, 76.0% of J & J Snack Foods shares are owned by institutional investors. 20.4% of J & J Snack Foods shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

J & J Snack Foods beats JBS on 9 of the 17 factors compared between the two stocks.

About JBS

JBS S.A., together with its subsidiaries, engages in the processing of animal protein worldwide. The company trades in beef, pork, chicken, poultry, fish, and lamb products; cooked frozen meat; plant based products; and other food products. It produces and commercializes leather, steel cans, plastic resin, personal care and cleaning products, and collagen, as well as wet blue leather, semi-finished, and finished leather products. In addition, it is involved in transportation, cold storage, industrial waste management solutions, recycling, and produces and commercializes electric power. Further, the company engages in the production and commercialization of raw ham and cooked ham; purchases and sells soybeans, tallow, palm oil, and caustic soda; and operates distribution centers and harbors. Additionally, it produces beef jerky; offers cattle fattening and warehousing services; operates logistics; and trades in by products from processing. The company was formerly known as Friboi Ltda. JBS S.A. was founded in 1953 and is headquartered in São Paulo, Brazil.

About J & J Snack Foods

J&J Snack Foods Corp. engages in the manufacturing of nutritional snack foods and distribution of frozen beverages to the food service and retail supermarket industries. It operates through the following segments: Food Service, Retail Supermarkets, and Frozen Beverages. The Food Service segment includes soft pretzels, frozen novelties, churros, handheld products, and baked goods. The Retail Supermarkets segment offers soft pretzel products including Superpretzel, frozen juice treats and desserts, including Luigi’s real Italian ice, Minute Maid juice bars and soft frozen lemonade, Whole Fruit frozen fruit bars and sorbet, Philly Swirl cups and sticks, ICEE Squeeze-Up Tubes and dough enrobed handheld products including Patio burritos. The Frozen Beverages segment provides frozen beverages to the food service industry primarily under the names ICEE, SLUSH PUPPIE, and PARROT ICE in the United States, Mexico, and Canada, as well as repair and maintenance services. The company was founded by Gerald B. Shreiber in 1971 and is headquartered in Mount Laurel, NJ.