Contrasting Edgewell Personal Care (NYSE:EPC) and BBB Foods (NYSE:TBBB)

BBB Foods (NYSE:TBBB) and Edgewell Personal Care (NYSE:EPC) are both consumer staples companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, risk, earnings, dividends, valuation, analyst recommendations and institutional ownership.

Volatility & Risk

BBB Foods has a beta of -0.02, suggesting that its stock price is 102% less volatile than the S&P 500. Comparatively, Edgewell Personal Care has a beta of 0.38, suggesting that its stock price is 62% less volatile than the S&P 500.

Profitability

This table compares BBB Foods and Edgewell Personal Care’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BBB Foods	-3.95%	-79.86%	-11.65%
Edgewell Personal Care	-3.69%	6.31%	2.57%

Insider & Institutional Ownership

8.4% of BBB Foods shares are owned by institutional investors. Comparatively, 91.9% of Edgewell Personal Care shares are owned by institutional investors. 3.0% of Edgewell Personal Care shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares BBB Foods and Edgewell Personal Care”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BBB Foods	$4.08 billion	1.22	-$148.23 million	($1.55)	-27.11
Edgewell Personal Care	$2.22 billion	0.57	$25.40 million	($1.67)	-16.34

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

Analyst Ratings

This is a summary of recent recommendations and price targets for BBB Foods and Edgewell Personal Care, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BBB Foods	2	2	5	0	2.33
Edgewell Personal Care	1	4	3	0	2.25

BBB Foods presently has a consensus target price of $43.14, suggesting a potential upside of 2.69%. Edgewell Personal Care has a consensus target price of $24.50, suggesting a potential downside of 10.22%. Given BBB Foods’ stronger consensus rating and higher possible upside, research analysts clearly believe BBB Foods is more favorable than Edgewell Personal Care.

Summary

Edgewell Personal Care beats BBB Foods on 8 of the 14 factors compared between the two stocks.

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.

About Edgewell Personal Care

Edgewell Personal Care Company is a manufacturer and marketer of personal care products in the wet shave, sun and skin care, feminine care and infant care categories. As of September 30, 2016, the Company had a portfolio of over 25 brands. It manages its business in four segments: Wet Shave, Sun and Skin Care, Feminine Care and All Other. Its Wet shave products are sold under the Schick, Wilkinson Sword, Edge, Skintimate, Shave Guard and Personna brand names. Its Sun and Skin Care products are sold under the Banana Boat, Hawaiian Tropic, Wet Ones and Playtex brand names and offers Wet Ones, portable hand wipes category, and Playtex household gloves, the branded household glove in the United States. Its Feminine Care segment markets its products under the Playtex, Stayfree, Carefree and o.b. brands and markets pads and liners. Its All Other segment includes infant care, pet care and miscellaneous other products.