Reviewing J. M. Smucker (NYSE:SJM) and BellRing Brands (NYSE:BRBR)

BellRing Brands (NYSE:BRBR) and J. M. Smucker (NYSE:SJM) are both consumer staples companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, risk, analyst recommendations and institutional ownership.

Analyst Ratings

This is a summary of recent ratings and target prices for BellRing Brands and J. M. Smucker, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BellRing Brands	1	8	9	0	2.44
J. M. Smucker	0	8	10	0	2.56

BellRing Brands currently has a consensus price target of $19.82, indicating a potential upside of 90.04%. J. M. Smucker has a consensus price target of $136.25, indicating a potential upside of 7.99%. Given BellRing Brands’ higher possible upside, equities analysts plainly believe BellRing Brands is more favorable than J. M. Smucker.

Risk and Volatility

BellRing Brands has a beta of 0.43, meaning that its stock price is 57% less volatile than the S&P 500. Comparatively, J. M. Smucker has a beta of 0.27, meaning that its stock price is 73% less volatile than the S&P 500.

Earnings & Valuation

This table compares BellRing Brands and J. M. Smucker”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BellRing Brands	$2.32 billion	0.52	$216.20 million	$1.42	7.35
J. M. Smucker	$9.05 billion	1.49	-$138.70 million	$2.14	58.96

BellRing Brands has higher earnings, but lower revenue than J. M. Smucker. BellRing Brands is trading at a lower price-to-earnings ratio than J. M. Smucker, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares BellRing Brands and J. M. Smucker’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BellRing Brands	7.28%	-33.04%	15.63%
J. M. Smucker	2.51%	19.85%	6.76%

Institutional and Insider Ownership

95.0% of BellRing Brands shares are held by institutional investors. Comparatively, 81.7% of J. M. Smucker shares are held by institutional investors. 1.5% of BellRing Brands shares are held by company insiders. Comparatively, 2.8% of J. M. Smucker shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

J. M. Smucker beats BellRing Brands on 8 of the 14 factors compared between the two stocks.

About BellRing Brands

BellRing Brands, Inc., together with its subsidiaries, provides various nutrition products in the United States. The company offers ready-to-drink (RTD) protein shakes, other RTD beverages, powders, nutrition bars, and other products primarily under the Premier Protein and Dymatize brands. It distributes its products through club, food, drug, mass, eCommerce, specialty, and convenience channels. BellRing Brands, Inc. was incorporated in 2019 and is headquartered in Saint Louis, Missouri.

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.