Treehouse Foods (THS) vs. J.M. Smucker Company (The) (NYSE:SJM) Critical Review
J.M. Smucker Company (The) (NYSE: SJM) and Treehouse Foods (NYSE:THS) are both mid-cap consumer staples companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, risk, dividends, institutional ownership and profitabiliy.
Earnings and Valuation
This table compares J.M. Smucker Company (The) and Treehouse Foods’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|J.M. Smucker Company (The)||$7.39 billion||1.88||$1.67 billion||$5.10||24.03|
|Treehouse Foods||$6.44 billion||0.66||$646.00 million||($4.42)||-17.01|
J.M. Smucker Company (The) has higher revenue and earnings than Treehouse Foods. Treehouse Foods is trading at a lower price-to-earnings ratio than J.M. Smucker Company (The), indicating that it is currently the more affordable of the two stocks.
This table compares J.M. Smucker Company (The) and Treehouse Foods’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|J.M. Smucker Company (The)||8.01%||12.63%||5.64%|
Insider and Institutional Ownership
75.5% of J.M. Smucker Company (The) shares are held by institutional investors. 3.5% of J.M. Smucker Company (The) shares are held by company insiders. Comparatively, 3.5% of Treehouse Foods shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
J.M. Smucker Company (The) pays an annual dividend of $3.00 per share and has a dividend yield of 2.4%. Treehouse Foods does not pay a dividend. J.M. Smucker Company (The) pays out 58.8% of its earnings in the form of a dividend. J.M. Smucker Company (The) has increased its dividend for 15 consecutive years.
This is a summary of current ratings and price targets for J.M. Smucker Company (The) and Treehouse Foods, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|J.M. Smucker Company (The)||2||5||4||0||2.18|
J.M. Smucker Company (The) currently has a consensus price target of $132.82, suggesting a potential upside of 8.36%. Treehouse Foods has a consensus price target of $84.83, suggesting a potential upside of 12.85%. Given Treehouse Foods’ stronger consensus rating and higher probable upside, analysts plainly believe Treehouse Foods is more favorable than J.M. Smucker Company (The).
Risk & Volatility
J.M. Smucker Company (The) has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500. Comparatively, Treehouse Foods has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500.
J.M. Smucker Company (The) beats Treehouse Foods on 11 of the 15 factors compared between the two stocks.
About J.M. Smucker Company (The)
The J. M. Smucker Company is a manufacturer and marketer of branded food and beverage products and pet food and pet snacks in North America. The Company’s segments include U.S. Retail Coffee, U.S. Retail Consumer Foods, U.S. Retail Pet Foods, and International and Foodservice. The Company’s U.S. retail market segments consist of the sale of branded food products to consumers through retail outlets in North America. In the U.S. retail market segments, the Company’s products are sold to food retailers, food wholesalers, drug stores, club stores, mass merchandisers, discount and dollar stores, military commissaries, natural foods stores and distributors, and pet specialty stores. In International and Foodservice, the Company’s products are distributed domestically and in foreign countries through retail channels and foodservice distributors and operators, such as restaurants, lodging, schools and universities, healthcare operators.
About Treehouse Foods
TreeHouse Foods, Inc. is a consumer packaged food and beverage manufacturer. The Company’s segments include North American Retail Grocery, Food Away From Home, and Industrial and Export. The Company manufactures a range of shelf stable, refrigerated, fresh and frozen products. Its product categories include beverages, salad dressings, snack nuts, beverage enhancers, pickles, sauces, cereals, pasta and dry dinners, cookies and crackers, retail bakery, aseptic products, jams and other products. The North American Retail Grocery segment sells branded and private label products to customers within the United States and Canada. The Food Away From Home segment sells products to foodservice customers, including restaurant chains and food distribution companies within the United States and Canada. The Industrial and Export segment includes the Company’s co-pack business and non-dairy powdered creamer sales to industrial customers for use in industrial applications.
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