JBS (OTCMKTS:JBSAY) vs. Nomad Foods (NYSE:NOMD) Financial Comparison

JBS (OTCMKTS:JBSAY) and Nomad Foods (NYSE:NOMD) are both consumer staples companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, earnings, dividends, profitability and analyst recommendations.

Volatility and Risk

JBS has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500. Comparatively, Nomad Foods has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500.

Profitability

This table compares JBS and Nomad Foods’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
JBS	2.43%	24.07%	5.01%
Nomad Foods	4.20%	8.88%	3.53%

Institutional and Insider Ownership

0.1% of JBS shares are owned by institutional investors. Comparatively, 75.3% of Nomad Foods shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for JBS and Nomad Foods, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JBS	0	0	3	0	3.00
Nomad Foods	1	2	3	0	2.33

JBS presently has a consensus price target of $18.33, indicating a potential upside of 26.96%. Nomad Foods has a consensus price target of $13.25, indicating a potential upside of 13.73%. Given JBS’s stronger consensus rating and higher possible upside, equities research analysts plainly believe JBS is more favorable than Nomad Foods.

Earnings and Valuation

This table compares JBS and Nomad Foods”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JBS	$77.18 billion	0.21	$1.77 billion	$1.84	7.85
Nomad Foods	$3.43 billion	0.47	$154.66 million	$1.02	11.42

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

Dividends

JBS pays an annual dividend of $1.05 per share and has a dividend yield of 7.3%. Nomad Foods pays an annual dividend of $0.68 per share and has a dividend yield of 5.8%. JBS pays out 57.1% of its earnings in the form of a dividend. Nomad Foods pays out 66.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Nomad Foods has increased its dividend for 2 consecutive years. JBS is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

JBS beats Nomad Foods on 10 of the 15 factors compared between the two stocks.

About JBS

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.

About Nomad Foods

Nomad Foods Limited, together with its subsidiaries, manufactures, markets, and distributes a range of frozen food products in the United Kingdom and internationally. The company offers frozen fish products, including fish fingers, coated fish, and natural fish; ready-to-cook vegetable products, such as peas and spinach; and frozen poultry and meat products comprising nuggets, grills, and burgers. It also provides meal products that include ready-to-cook noodles, pasta, lasagna, pancakes, and other ready-made meals; ice creams, such as in-home and out-of-home ice creams; and other products consisting of soups, pizzas, bakery goods, and meat substitutes. The company sells its products to supermarkets and food retail chains primarily under the Birds Eye, Green Cuisine, iglo, Findus, Aunt Bessie's, Goodfella's, Frikom, Ledo, La Cocinera, and Belviva brand names. Nomad Foods Limited was founded in 2014 and is headquartered in Feltham, the United Kingdom.