Comparing Colgate-Palmolive (NYSE:CL) & BBB Foods (NYSE:TBBB)

Colgate-Palmolive (NYSE:CL) and BBB Foods (NYSE:TBBB) are both consumer staples companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, profitability, risk, analyst recommendations and dividends.

Profitability

This table compares Colgate-Palmolive and BBB Foods’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Colgate-Palmolive	10.45%	353.72%	17.63%
BBB Foods	-2.61%	-44.56%	-7.47%

Analyst Recommendations

This is a summary of current ratings for Colgate-Palmolive and BBB Foods, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Colgate-Palmolive	0	6	11	0	2.65
BBB Foods	1	4	3	0	2.25

Colgate-Palmolive currently has a consensus target price of $94.75, suggesting a potential downside of 0.62%. BBB Foods has a consensus target price of $39.00, suggesting a potential upside of 11.25%. Given BBB Foods’ higher possible upside, analysts plainly believe BBB Foods is more favorable than Colgate-Palmolive.

Earnings and Valuation

This table compares Colgate-Palmolive and BBB Foods”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Colgate-Palmolive	$20.38 billion	3.77	$2.13 billion	$2.62	36.39
BBB Foods	$3.15 billion	1.27	$18.36 million	($0.84)	-41.73

Colgate-Palmolive has higher revenue and earnings than BBB Foods. BBB Foods is trading at a lower price-to-earnings ratio than Colgate-Palmolive, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Colgate-Palmolive has a beta of 0.28, suggesting that its stock price is 72% less volatile than the S&P 500. Comparatively, BBB Foods has a beta of -0.16, suggesting that its stock price is 116% less volatile than the S&P 500.

Institutional & Insider Ownership

80.4% of Colgate-Palmolive shares are held by institutional investors. Comparatively, 8.4% of BBB Foods shares are held by institutional investors. 0.4% of Colgate-Palmolive shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Colgate-Palmolive beats BBB Foods on 13 of the 14 factors compared between the two stocks.

About Colgate-Palmolive

Colgate-Palmolive Company, together with its subsidiaries, manufactures and sells consumer products in the United States and internationally. It operates through two segments: Oral, Personal and Home Care; and Pet Nutrition. The Oral, Personal and Home Care segment offers toothpaste, toothbrushes, mouthwash, bar and liquid hand soaps, shower gels, shampoos, conditioners, deodorants and antiperspirants, skin health products, dishwashing detergents, fabric conditioners, household cleaners, and other related items. This segment markets and sells its products under various brands, which include Colgate, Darlie, elmex, hello, meridol, Sorriso, Tom's of Maine, Irish Spring, Palmolive, Protex, Sanex, Softsoap, Lady Speed Stick, Speed Stick, EltaMD, Filorga, PCA SKIN, Ajax, Axion, Fabuloso, Murphy, Suavitel, and Soupline to a range of traditional and eCommerce retailers, wholesalers, and distributors. It includes pharmaceutical products for dentists and other oral health professionals. Its Pet Nutrition segment offers pet nutrition products for everyday nutritional needs under the Hill's Science Diet brand; and a range of therapeutic pet products to help nutritionally support dogs and cats in different stages of health under the Hill's Prescription Diet brand. This segment markets and sells its products through pet supply retailers, veterinarians, and eCommerce retailers. Colgate-Palmolive Company was founded in 1806 and is headquartered in New York, New York.

About BBB Foods

BBB Foods Inc., through its subsidiaries, operates a chain of grocery retail stores in Mexico. It offers household cleaning, personal hyenine, cosmetics and beauty, pharmacy, and general merchandise products, as well as jellies and desserts, foods and drinks, pet supplies, coffee, tea, chocolates, breads, dry and frozen foods, snacks and sweets, and toilet papers and napkins. The company also provides branded, private label, and spot products. It serves low-to-middle income households through online channels. BBB Foods Inc. was incorporated in 2004 and is headquartered in Mexico City, Mexico.