Pilgrim’s Pride Corporation (NASDAQ: PPC) and Industrias Bachoco, S.A. de C.V. (NYSE:IBA) are both mid-cap consumer staples companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, institutional ownership, earnings, valuation, risk and analyst recommendations.

Risk & Volatility

Pilgrim’s Pride Corporation has a beta of 0.13, indicating that its stock price is 87% less volatile than the S&P 500. Comparatively, Industrias Bachoco, S.A. de C.V. has a beta of 0.37, indicating that its stock price is 63% less volatile than the S&P 500.

Insider & Institutional Ownership

24.3% of Pilgrim’s Pride Corporation shares are held by institutional investors. Comparatively, 3.8% of Industrias Bachoco, S.A. de C.V. shares are held by institutional investors. 78.8% of Pilgrim’s Pride Corporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Pilgrim’s Pride Corporation and Industrias Bachoco, S.A. de C.V.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pilgrim’s Pride Corporation 6.05% 49.65% 14.88%
Industrias Bachoco, S.A. de C.V. 7.54% 12.91% 9.16%

Dividends

Industrias Bachoco, S.A. de C.V. pays an annual dividend of $0.82 per share and has a dividend yield of 1.2%. Pilgrim’s Pride Corporation does not pay a dividend. Industrias Bachoco, S.A. de C.V. pays out 18.7% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent ratings for Pilgrim’s Pride Corporation and Industrias Bachoco, S.A. de C.V., as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pilgrim’s Pride Corporation 0 4 1 0 2.20
Industrias Bachoco, S.A. de C.V. 0 0 0 0 N/A

Pilgrim’s Pride Corporation presently has a consensus price target of $23.33, indicating a potential downside of 21.06%. Given Pilgrim’s Pride Corporation’s higher probable upside, research analysts clearly believe Pilgrim’s Pride Corporation is more favorable than Industrias Bachoco, S.A. de C.V..

Valuation & Earnings

This table compares Pilgrim’s Pride Corporation and Industrias Bachoco, S.A. de C.V.’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Pilgrim’s Pride Corporation $8.21 billion 0.90 $1.00 billion $1.99 14.85
Industrias Bachoco, S.A. de C.V. $3.10 billion 1.08 $446.78 million $4.38 15.31

Pilgrim’s Pride Corporation has higher revenue and earnings than Industrias Bachoco, S.A. de C.V.. Pilgrim’s Pride Corporation is trading at a lower price-to-earnings ratio than Industrias Bachoco, S.A. de C.V., indicating that it is currently the more affordable of the two stocks.

Summary

Pilgrim’s Pride Corporation beats Industrias Bachoco, S.A. de C.V. on 9 of the 15 factors compared between the two stocks.

Pilgrim’s Pride Corporation Company Profile

Pilgrim’s Pride Corporation is a retail feed store. It is a producer and seller of chicken with operations in the United States, Mexico and Puerto Rico. It is engaged in the production, processing, marketing and distribution of fresh, frozen and value-added chicken products to retailers, distributors and foodservice operators. It offers a range of products to its customers through national and international distribution channels. Its fresh chicken products consist of refrigerated (non-frozen) whole chickens, whole cut-up chickens and selected chicken parts that are either marinated or non-marinated. Its prepared chicken products include ready-to-cook and individually frozen chicken parts, strips, nuggets and patties, some of which are either breaded or non-breaded and either marinated or non-marinated. As of December 25, 2016, the Company marketed its portfolio of fresh, prepared and value-added chicken products across the United States, Mexico and in approximately 80 other countries.

Industrias Bachoco, S.A. de C.V. Company Profile

Industrias Bachoco, S.A.B. de C.V. (Bachoco) is a holding company. The Company owns and manages over 1,000 facilities, organized in approximately 10 production complexes and over 60 distribution centers in Mexico, and a production complex in the United States. Bachoco operates through two segments: poultry and others. The poultry segment consists of chicken and egg operations. The others segment includes the operations of pigs, balanced feed for animal consumption and other by-products. The Company participates in the food industry in Mexico and in the United States, mainly in the poultry industry. In Mexico, the Company’s core business is poultry (chicken and egg products). It also produces and sells a range of other products, which it refers to as other business lines, which include the production and selling of balanced feed, live swine, beef and turkey products, as well as a laboratory that produces vaccines for the poultry industry and other similar industries.

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