Analyzing BBB Foods (TBBB) and Its Peers

BBB Foods (NYSE:TBBB) is one of 149 publicly-traded companies in the “Consumer Staples Distribution & Retail” industry, but how does it weigh in compared to its competitors? We will compare BBB Foods to similar businesses based on the strength of its risk, earnings, dividends, analyst recommendations, valuation, profitability and institutional ownership.

Insider and Institutional Ownership

8.4% of BBB Foods shares are owned by institutional investors. Comparatively, 45.0% of shares of all “Consumer Staples Distribution & Retail” companies are owned by institutional investors. 19.7% of shares of all “Consumer Staples Distribution & Retail” companies are owned 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.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for BBB Foods and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BBB Foods	0	3	7	0	2.70
BBB Foods Competitors	2241	8261	10033	459	2.41

BBB Foods presently has a consensus price target of $51.88, suggesting a potential downside of 18.97%. As a group, “Consumer Staples Distribution & Retail” companies have a potential upside of 57.05%. Given BBB Foods’ competitors higher possible upside, analysts clearly believe BBB Foods has less favorable growth aspects than its competitors.

Volatility and Risk

BBB Foods has a beta of -0.01, meaning that its share price is 101% less volatile than the S&P 500. Comparatively, BBB Foods’ competitors have a beta of 0.44, meaning that their average share price is 56% less volatile than the S&P 500.

Earnings and Valuation

This table compares BBB Foods and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
BBB Foods	$4.08 billion	-$148.23 million	-39.76
BBB Foods Competitors	$34.71 billion	$846.26 million	16.13

BBB Foods’ competitors have higher revenue and earnings than BBB Foods. BBB Foods is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares BBB Foods and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BBB Foods	-1.94%	-40.86%	-5.93%
BBB Foods Competitors	-25.88%	3.91%	2.94%

Summary

BBB Foods competitors beat BBB Foods on 10 of the 13 factors compared.

BBB Foods Company Profile

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.