Critical Comparison: JBS (NYSE:JBS) versus Mission Produce (NASDAQ:AVO)

Mission Produce (NASDAQ:AVO) and JBS (NYSE:JBS) are both consumer staples companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, dividends, risk, profitability, institutional ownership and earnings.

Profitability

This table compares Mission Produce and JBS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mission Produce	1.83%	6.92%	4.25%
JBS	1.22%	12.00%	2.47%

Insider & Institutional Ownership

63.6% of Mission Produce shares are owned by institutional investors. 30.8% of Mission Produce shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Mission Produce and JBS”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mission Produce	$1.39 billion	0.80	$37.70 million	$0.32	39.62
JBS	$86.18 billion	0.12	$2.02 billion	$1.02	12.78

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

Risk and Volatility

Mission Produce has a beta of 0.48, suggesting that its stock price is 52% less volatile than the S&P 500. Comparatively, JBS has a beta of -1.67, suggesting that its stock price is 267% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Mission Produce and JBS, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mission Produce	0	2	3	1	2.83
JBS	1	1	5	1	2.75

Mission Produce currently has a consensus price target of $16.67, suggesting a potential upside of 31.44%. JBS has a consensus price target of $18.42, suggesting a potential upside of 41.23%. Given JBS’s higher possible upside, analysts plainly believe JBS is more favorable than Mission Produce.

Summary

Mission Produce beats JBS on 8 of the 14 factors compared between the two stocks.

About Mission Produce

Mission Produce, Inc. engages in the sourcing, farming, packaging, marketing, and distribution of avocados, mangoes, and blueberries to food retailers, distributors, and foodservice customers in the United States and internationally. The company operates through three segments, Marketing and Distribution; International Farming; and Blueberries. It also provides ripening, bagging, custom packing, logistical management, and quality assurance services. In addition, the company offers merchandising and promotional support, and insights on market trends, and training services. Mission Produce, Inc. was founded in 1983 and is headquartered in Oxnard, California.

About JBS

JBS N.V., together with its subsidiaries, operates as a protein and food company worldwide. The company offers beef, pork, chicken, poultry, fish, and lamb products; cooked frozen meat; plant based products; and other food products. It also sells leather, leather, hygiene and cleaning products, collagen, metal packaging, biodiesel, and others, as well as wet blue leather, semi-finished, and finished leather products. In addition, the company is involved in beef processing, such as slaughtering, refrigerating, industrializing, and production of canned beef by-products, as well as fish processing; leather production, processing, and commercialization; production and commercialization of steel cans, plastic resin, soap base for production, soap bar, biodiesel, glycerin, olein, oily acid, collagen, and wrapper derived from cattle tripe; industrial waste management; cold storage; and purchase and sale of soybeans, tallow, palm oil, caustic soda, and stearin. Further, it engages in chicken and pork processing, including raising, slaughtering, and processing of broiler chickens and hogs; production and commercialization of beef and food products; production of pet food and concentrates; electric power production, cogeneration, and commercialization; operates distribution centers and harbors; and provides transportation services and dog biscuits. Additionally, it produces beef jerky; offers cattle fattening and warehousing services; operates logistics; and trades in by products from processing. The company was founded in 1953 and is based in Amstelveen, Netherlands.