John B. Sanfilippo & Son (NASDAQ:JBSS – Get Free Report) and Kraft Heinz (NASDAQ:KHC – Get Free Report) are both consumer staples companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.
Institutional and Insider Ownership
70.6% of John B. Sanfilippo & Son shares are held by institutional investors. Comparatively, 78.2% of Kraft Heinz shares are held by institutional investors. 30.2% of John B. Sanfilippo & Son shares are held by company insiders. Comparatively, 0.4% of Kraft Heinz shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Analyst Ratings
This is a breakdown of current ratings and price targets for John B. Sanfilippo & Son and Kraft Heinz, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| John B. Sanfilippo & Son | 1 | 0 | 1 | 1 | 2.67 |
| Kraft Heinz | 4 | 16 | 0 | 1 | 1.90 |
Valuation and Earnings
This table compares John B. Sanfilippo & Son and Kraft Heinz”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| John B. Sanfilippo & Son | $1.13 billion | 0.75 | $58.93 million | $5.62 | 12.88 |
| Kraft Heinz | $25.16 billion | 1.19 | $2.74 billion | ($3.73) | -6.79 |
Kraft Heinz has higher revenue and earnings than John B. Sanfilippo & Son. Kraft Heinz is trading at a lower price-to-earnings ratio than John B. Sanfilippo & Son, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
John B. Sanfilippo & Son has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500. Comparatively, Kraft Heinz has a beta of 0.16, indicating that its stock price is 84% less volatile than the S&P 500.
Profitability
This table compares John B. Sanfilippo & Son and Kraft Heinz’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| John B. Sanfilippo & Son | 5.84% | 19.17% | 11.43% |
| Kraft Heinz | -17.35% | 7.26% | 3.86% |
Dividends
John B. Sanfilippo & Son pays an annual dividend of $0.90 per share and has a dividend yield of 1.2%. Kraft Heinz pays an annual dividend of $1.60 per share and has a dividend yield of 6.3%. John B. Sanfilippo & Son pays out 16.0% of its earnings in the form of a dividend. Kraft Heinz pays out -42.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. John B. Sanfilippo & Son has raised its dividend for 8 consecutive years. Kraft Heinz is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
John B. Sanfilippo & Son beats Kraft Heinz on 11 of the 17 factors compared between the two stocks.
About John B. Sanfilippo & Son
John B. Sanfilippo & Son, Inc. engages in the processing and distribution of nuts and nut-related products. It offers peanuts, pecans, cashews, walnuts, almonds, and other nuts under the brands of Fisher, Orchard Valley Harvest, Squirrel Brand, and Southern Style Nuts. The company was founded by Gaspare Sanfilippo and John B. Sanfilippo in 1922 and is headquartered in Elgin, IL.
About Kraft Heinz
The Kraft Heinz Company, together with its subsidiaries, manufactures and markets food and beverage products in North America and internationally. Its products include condiments and sauces, cheese and dairy products, meals, meats, refreshment beverages, coffee, and other grocery products under the Kraft, Oscar Mayer, Heinz, Philadelphia, Lunchables, Velveeta, Ore-Ida, Maxwell House, Kool-Aid, Jell-O, Heinz, ABC, Master, Quero, Kraft, Golden Circle, Wattie's, Pudliszki, and Plasmon brands. It sells its products through its own sales organizations, as well as through independent brokers, agents, and distributors to chain, wholesale, cooperative, and independent grocery accounts; convenience, value, and club stores; pharmacies and drug stores; mass merchants; foodservice distributors; institutions, including hotels, restaurants, bakeries, hospitals, health care facilities, and government agencies; and online through various e-commerce platforms and retailers. The company was formerly known as H.J. Heinz Holding Corporation and changed its name to The Kraft Heinz Company in July 2015. The Kraft Heinz Company was founded in 1869 and is based in Pittsburgh, Pennsylvania.
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