Head to Head Analysis: Chefs’ Warehouse (NASDAQ:CHEF) vs. BBB Foods (NYSE:TBBB)

Chefs’ Warehouse (NASDAQ:CHEF) and BBB Foods (NYSE:TBBB) are both mid-cap consumer staples companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, analyst recommendations, dividends and profitability.

Valuation and Earnings

This table compares Chefs’ Warehouse and BBB Foods”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chefs’ Warehouse	$4.15 billion	1.06	$72.36 million	$2.10	51.57
BBB Foods	$4.08 billion	1.40	-$148.23 million	($1.61)	-29.93

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

Insider and Institutional Ownership

91.5% of Chefs’ Warehouse shares are owned by institutional investors. Comparatively, 8.4% of BBB Foods shares are owned by institutional investors. 11.1% of Chefs’ Warehouse shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Chefs’ Warehouse and BBB Foods’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chefs’ Warehouse	2.09%	16.95%	5.19%
BBB Foods	-3.68%	-72.47%	-10.71%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Chefs’ Warehouse and BBB Foods, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chefs’ Warehouse	0	2	5	1	2.88
BBB Foods	1	2	6	1	2.70

Chefs’ Warehouse currently has a consensus target price of $107.43, indicating a potential downside of 0.80%. BBB Foods has a consensus target price of $45.12, indicating a potential downside of 6.36%. Given Chefs’ Warehouse’s stronger consensus rating and higher possible upside, equities analysts clearly believe Chefs’ Warehouse is more favorable than BBB Foods.

Summary

Chefs’ Warehouse beats BBB Foods on 11 of the 13 factors compared between the two stocks.

About Chefs’ Warehouse

The Chefs’ Warehouse, Inc., together with its subsidiaries, distributes specialty food and center-of-the-plate products in the United States, the Middle East, and Canada. The company’s product portfolio includes specialty food products, such as artisan charcuterie, specialty cheeses, unique oils and vinegars, truffles, caviar, chocolate, and pastry products; and center-of-the-plate products consisting of custom cut beef, seafood, and hormone-free poultry, as well as broadline food products comprising cooking oils, butter, eggs, milk, and flour. The company serves menu-driven independent restaurants, fine dining establishments, country clubs, hotels, caterers, culinary schools, bakeries, patisseries, chocolatiers, cruise lines, casinos, and specialty food stores. It markets its center-of-the-plate products directly to consumers through a mail and e-commerce platform. The Chefs’ Warehouse, Inc. was founded in 1985 and is headquartered in Ridgefield, Connecticut.

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.