Critical Comparison: Krispy Kreme (NASDAQ:DNUT) & BBB Foods (NYSE:TBBB)

BBB Foods (NYSE:TBBB) and Krispy Kreme (NASDAQ:DNUT) are both consumer staples companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, risk, profitability, valuation, dividends and earnings.

Volatility and Risk

BBB Foods has a beta of 0.02, indicating that its stock price is 98% less volatile than the S&P 500. Comparatively, Krispy Kreme has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500.

Institutional & Insider Ownership

8.4% of BBB Foods shares are owned by institutional investors. Comparatively, 81.7% of Krispy Kreme shares are owned by institutional investors. 3.0% of Krispy Kreme shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for BBB Foods and Krispy Kreme, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BBB Foods	2	2	4	0	2.25
Krispy Kreme	3	1	3	1	2.25

BBB Foods presently has a consensus target price of $42.50, suggesting a potential upside of 14.93%. Krispy Kreme has a consensus target price of $4.63, suggesting a potential upside of 46.36%. Given Krispy Kreme’s higher possible upside, analysts plainly believe Krispy Kreme is more favorable than BBB Foods.

Valuation and Earnings

This table compares BBB Foods and Krispy Kreme”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BBB Foods	$4.08 billion	1.06	-$148.23 million	($1.55)	-23.86
Krispy Kreme	$1.51 billion	0.36	-$515.77 million	($2.99)	-1.06

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

Profitability

This table compares BBB Foods and Krispy Kreme’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BBB Foods	-3.95%	-82.15%	-12.44%
Krispy Kreme	-33.36%	-4.34%	-1.15%

Summary

Krispy Kreme beats BBB Foods on 8 of the 14 factors compared between the two stocks.

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.

About Krispy Kreme

Krispy Kreme, Inc., together with its subsidiaries, produces doughnuts in the United States, the United Kingdom, Ireland, Australia, New Zealand, Mexico, Canada, Japan, and internationally. The company operates through three segments: U.S., International, and Market Development. The company offers doughnut experiences through hot light theater and fresh shops, delivered fresh daily branded cabinets and merchandising units within grocery and convenience stores, quick service restaurants, club memberships, drug stores, and ecommerce, as well as through its branded sweet treat line comprising Krispy Kreme branded sweet treats. It also provides cookies under the Insomnia Cookies brand, cookie cakes, ice cream, cookie-wiches, and brownies; and operates Krispy Kreme company-owned shops and franchise shops. The company was formerly known as Krispy Kreme Doughnuts, Inc. and changed its name to Krispy Kreme, Inc. in May 2021. Krispy Kreme, Inc. was founded in 1937 and is based in Charlotte, North Carolina.