Marzetti (NASDAQ:MZTI) vs. J. M. Smucker (NYSE:SJM) Head-To-Head Analysis

J. M. Smucker (NYSE:SJM) and Marzetti (NASDAQ:MZTI) are both consumer staples companies, but which is the superior investment? We will contrast the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, profitability, institutional ownership and valuation.

Dividends

J. M. Smucker pays an annual dividend of $4.48 per share and has a dividend yield of 3.6%. Marzetti pays an annual dividend of $4.00 per share and has a dividend yield of 3.8%. J. M. Smucker pays out 209.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Marzetti pays out 57.4% of its earnings in the form of a dividend. J. M. Smucker has raised its dividend for 27 consecutive years and Marzetti has raised its dividend for 62 consecutive years. Marzetti is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

81.7% of J. M. Smucker shares are held by institutional investors. Comparatively, 66.4% of Marzetti shares are held by institutional investors. 2.8% of J. M. Smucker shares are held by insiders. Comparatively, 29.1% of Marzetti shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares J. M. Smucker and Marzetti’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
J. M. Smucker	2.51%	19.85%	6.76%
Marzetti	9.93%	18.22%	13.43%

Earnings & Valuation

This table compares J. M. Smucker and Marzetti”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
J. M. Smucker	$9.05 billion	1.49	-$138.70 million	$2.14	58.96
Marzetti	$1.93 billion	1.49	$191.61 million	$6.97	15.12

Marzetti has lower revenue, but higher earnings than J. M. Smucker. Marzetti is trading at a lower price-to-earnings ratio than J. M. Smucker, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations for J. M. Smucker and Marzetti, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
J. M. Smucker	0	8	10	0	2.56
Marzetti	1	2	0	0	1.67

J. M. Smucker currently has a consensus target price of $136.25, indicating a potential upside of 7.99%. Marzetti has a consensus target price of $135.00, indicating a potential upside of 28.10%. Given Marzetti’s higher possible upside, analysts plainly believe Marzetti is more favorable than J. M. Smucker.

Volatility & Risk

J. M. Smucker has a beta of 0.27, suggesting that its share price is 73% less volatile than the S&P 500. Comparatively, Marzetti has a beta of 0.35, suggesting that its share price is 65% less volatile than the S&P 500.

Summary

Marzetti beats J. M. Smucker on 11 of the 17 factors compared between the two stocks.

About J. M. Smucker

The J. M. Smucker Company manufactures and markets branded food and beverage products worldwide. It operates in three segments: U.S. Retail Pet Foods, U.S. Retail Coffee, and U.S. Retail Consumer Foods. The company offers mainstream roast, ground, single serve, and premium coffee; peanut butter and specialty spreads; fruit spreads, toppings, and syrups; jelly products; nut mix products; shortening and oils; frozen sandwiches and snacks; pet food and pet snacks; and foodservice hot beverage, foodservice portion control, and flour products, as well as dog and cat food, frozen handheld products, juices and beverages, and baking mixes and ingredients. It provides its products under the Meow Mix, Milk-Bone, Pup-Peroni, Canine Carry Outs, Folgers, Café Bustelo, Dunkin', Folgers, Café Bustelo, 1850, Jif, Smucker's, Smucker's Uncrustables, Robin Hood, and Five Roses. The company sells its products through direct sales and brokers to food retailers, club stores, discount and dollar stores, online retailers, pet specialty stores, natural foods stores and distributors, drug stores, military commissaries, and mass merchandisers. Smucker Company was founded in 1897 and is headquartered in Orrville, Ohio.

About Marzetti

Lancaster Colony Corporation engages in the manufacturing and marketing of specialty food products for the retail and foodservice channels in the United States. It operates in two segments, Retail and Foodservice. The company offers frozen garlic bread under the New York BRAND Bakery; frozen Parkerhouse style yeast and dinner rolls under the Sister Schubert's brand; salad dressings under the Marzetti, Simply Dressed, Cardini's, and Girard's brands; vegetable and fruit dips under the Marzetti brand; croutons and salad toppings under the New York BRAND Bakery, Chatham Village, and Marzetti brands; and frozen pasta under the Marzetti Frozen Pasta brand. It also manufactures and sells other products to brand license agreements, including Olive Garden dressings, Buffalo Wild Wings sauces, and Chick-fil-A sauces. The company sells its products through sales personnel, food brokers, and distributors to retailers and restaurants. Lancaster Colony Corporation was incorporated in 1961 and is based in Westerville, Ohio.