US Foods (NYSE:USFD – Get Free Report) and J & J Snack Foods (NASDAQ:JJSF – Get Free Report) are both consumer staples companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, dividends, earnings, valuation and risk.
Profitability
This table compares US Foods and J & J Snack Foods’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| US Foods | 1.71% | 19.37% | 6.14% |
| J & J Snack Foods | 3.75% | 9.01% | 6.18% |
Risk & Volatility
US Foods has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500. Comparatively, J & J Snack Foods has a beta of 0.43, suggesting that its share price is 57% less volatile than the S&P 500.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| US Foods | $39.42 billion | 0.47 | $676.00 million | $2.97 | 28.30 |
| J & J Snack Foods | $1.58 billion | 0.83 | $65.60 million | $2.98 | 23.46 |
US Foods has higher revenue and earnings than J & J Snack Foods. J & J Snack Foods is trading at a lower price-to-earnings ratio than US Foods, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for US Foods and J & J Snack Foods, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| US Foods | 0 | 3 | 10 | 0 | 2.77 |
| J & J Snack Foods | 2 | 0 | 1 | 0 | 1.67 |
US Foods currently has a consensus price target of $106.33, indicating a potential upside of 26.52%. J & J Snack Foods has a consensus price target of $120.00, indicating a potential upside of 71.67%. Given J & J Snack Foods’ higher possible upside, analysts plainly believe J & J Snack Foods is more favorable than US Foods.
Institutional & Insider Ownership
98.8% of US Foods shares are owned by institutional investors. Comparatively, 76.0% of J & J Snack Foods shares are owned by institutional investors. 0.7% of US Foods shares are owned by insiders. Comparatively, 20.4% of J & J Snack Foods shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Summary
US Foods beats J & J Snack Foods on 8 of the 14 factors compared between the two stocks.
About US Foods
US Foods Holding Corp., together with its subsidiaries, engages in marketing, sale, and distribution of fresh, frozen, and dry food and non-food products to foodservice customers in the United States. The company's customers include independently owned single and multi-unit restaurants, regional concepts, national restaurant chains, hospitals, nursing homes, hotels and motels, country clubs, government and military organizations, colleges and universities, and retail locations. The company was formerly known as USF Holding Corp. and changed its name to US Foods Holding Corp. in February 2016. US Foods Holding Corp. was incorporated in 2007 and is headquartered in Rosemont, Illinois.
About J & J Snack Foods
J&J Snack Foods Corp. engages in the manufacturing of nutritional snack foods and distribution of frozen beverages to the food service and retail supermarket industries. It operates through the following segments: Food Service, Retail Supermarkets, and Frozen Beverages. The Food Service segment includes soft pretzels, frozen novelties, churros, handheld products, and baked goods. The Retail Supermarkets segment offers soft pretzel products including Superpretzel, frozen juice treats and desserts, including Luigi’s real Italian ice, Minute Maid juice bars and soft frozen lemonade, Whole Fruit frozen fruit bars and sorbet, Philly Swirl cups and sticks, ICEE Squeeze-Up Tubes and dough enrobed handheld products including Patio burritos. The Frozen Beverages segment provides frozen beverages to the food service industry primarily under the names ICEE, SLUSH PUPPIE, and PARROT ICE in the United States, Mexico, and Canada, as well as repair and maintenance services. The company was founded by Gerald B. Shreiber in 1971 and is headquartered in Mount Laurel, NJ.
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