Contrasting Pilgrim’s Pride (NASDAQ:PPC) and JBS (OTCMKTS:JBSAY)

Pilgrim’s Pride (NASDAQ:PPC) and JBS (OTCMKTS:JBSAY) are both consumer staples companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, dividends, risk, profitability and institutional ownership.

Earnings and Valuation

This table compares Pilgrim’s Pride and JBS”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pilgrim’s Pride	$17.88 billion	0.50	$1.09 billion	$5.19	7.28
JBS	$77.18 billion	0.21	$1.77 billion	$1.76	8.20

JBS has higher revenue and earnings than Pilgrim’s Pride. Pilgrim’s Pride is trading at a lower price-to-earnings ratio than JBS, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

16.6% of Pilgrim’s Pride shares are owned by institutional investors. Comparatively, 0.1% of JBS shares are owned by institutional investors. 82.6% of Pilgrim’s Pride shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for Pilgrim’s Pride and JBS, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pilgrim’s Pride	1	5	0	0	1.83
JBS	0	0	2	1	3.33

Pilgrim’s Pride currently has a consensus price target of $47.67, suggesting a potential upside of 26.14%. Given Pilgrim’s Pride’s higher probable upside, equities research analysts plainly believe Pilgrim’s Pride is more favorable than JBS.

Risk & Volatility

Pilgrim’s Pride has a beta of 0.45, meaning that its share price is 55% less volatile than the S&P 500. Comparatively, JBS has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500.

Profitability

This table compares Pilgrim’s Pride and JBS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pilgrim’s Pride	6.81%	37.15%	13.46%
JBS	2.65%	25.31%	5.36%

Summary

Pilgrim’s Pride beats JBS on 8 of the 14 factors compared between the two stocks.

About Pilgrim’s Pride

Pilgrim’s Pride Corp. engages in the production, processing, marketing, and distribution of fresh, frozen and value-added chicken and pork products to retailers, distributors, and foodservice operators. It operates through the following segments: U.S., U.K. and Europe, and Mexico. The company was founded by Lonnie A. Pilgrim and Aubrey Pilgrim on October 2, 1946, and is headquartered in Greeley, CO.

About JBS

JBS S.A., together with its subsidiaries, engages in the processing of animal protein worldwide. The company trades in beef, pork, chicken, poultry, fish, and lamb products; cooked frozen meat; plant based products; and other food products. It produces and commercializes leather, steel cans, plastic resin, personal care and cleaning products, and collagen, as well as wet blue leather, semi-finished, and finished leather products. In addition, it is involved in transportation, cold storage, industrial waste management solutions, recycling, and produces and commercializes electric power. Further, the company engages in the production and commercialization of raw ham and cooked ham; purchases and sells soybeans, tallow, palm oil, and caustic soda; and operates distribution centers and harbors. Additionally, it produces beef jerky; offers cattle fattening and warehousing services; operates logistics; and trades in by products from processing. The company was formerly known as Friboi Ltda. JBS S.A. was founded in 1953 and is headquartered in São Paulo, Brazil.