J. M. Smucker (NYSE:SJM) vs. JBS (NYSE:JBS) Critical Comparison

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

Volatility & Risk

JBS has a beta of -1.67, suggesting that its share price is 267% less volatile than the S&P 500. Comparatively, J. M. Smucker has a beta of 0.27, suggesting that its share price is 73% less volatile than the S&P 500.

Earnings & Valuation

This table compares JBS and J. M. Smucker”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JBS	$86.18 billion	0.12	$2.02 billion	$1.02	12.78
J. M. Smucker	$9.16 billion	1.47	-$138.70 million	$2.14	58.96

JBS has higher revenue and earnings than J. M. Smucker. JBS 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.

Dividends

JBS pays an annual dividend of $1.00 per share and has a dividend yield of 7.7%. J. M. Smucker pays an annual dividend of $4.48 per share and has a dividend yield of 3.6%. JBS pays out 98.0% 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. M. Smucker pays out 209.3% 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. M. Smucker has increased its dividend for 27 consecutive years. JBS is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of current recommendations for JBS and J. M. Smucker, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JBS	1	1	5	1	2.75
J. M. Smucker	0	8	10	0	2.56

JBS currently has a consensus target price of $18.42, suggesting a potential upside of 41.23%. J. M. Smucker has a consensus target price of $136.25, suggesting a potential upside of 7.99%. Given JBS’s stronger consensus rating and higher possible upside, research analysts clearly believe JBS is more favorable than J. M. Smucker.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
JBS	1.22%	12.00%	2.47%
J. M. Smucker	2.51%	19.85%	6.76%

Institutional and Insider Ownership

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

Summary

J. M. Smucker beats JBS on 11 of the 18 factors compared between the two stocks.

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.

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.