Analyzing JBS (JBSAY) and The Competition

JBS (OTCMKTS:JBSAY) is one of 330 publicly-traded companies in the “Food Products” industry, but how does it contrast to its rivals? We will compare JBS to similar companies based on the strength of its risk, institutional ownership, analyst recommendations, profitability, earnings, dividends and valuation.

Risk and Volatility

JBS has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500. Comparatively, JBS’s rivals have a beta of -3.82, indicating that their average stock price is 482% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for JBS and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JBS	0	0	3	0	3.00
JBS Competitors	2371	8208	8287	402	2.35

JBS presently has a consensus price target of $18.33, indicating a potential upside of 26.96%. As a group, “Food Products” companies have a potential upside of 11.44%. Given JBS’s stronger consensus rating and higher probable upside, equities analysts plainly believe JBS is more favorable than its rivals.

Institutional and Insider Ownership

0.1% of JBS shares are owned by institutional investors. Comparatively, 39.2% of shares of all “Food Products” companies are owned by institutional investors. 18.7% of shares of all “Food Products” companies are owned by 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.

Profitability

This table compares JBS and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
JBS	2.43%	24.07%	5.01%
JBS Competitors	-13.53%	-146.29%	-4.56%

Dividends

JBS pays an annual dividend of $1.05 per share and has a dividend yield of 7.3%. JBS pays out 57.1% of its earnings in the form of a dividend. As a group, “Food Products” companies pay a dividend yield of 11.9% and pay out 31.4% of their earnings in the form of a dividend. JBS lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Valuation & Earnings

This table compares JBS and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
JBS	$77.18 billion	$1.77 billion	7.85
JBS Competitors	$7.21 billion	$702.37 million	-2,369.25

JBS has higher revenue and earnings than its rivals. JBS is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

JBS beats its rivals on 10 of the 15 factors compared.

JBS Company Profile

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.