J & J Snack Foods (NASDAQ:JJSF – Get Free Report) and JBS (OTCMKTS:JBSAY – Get Free Report) are both consumer staples companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, valuation, profitability, earnings and risk.
Dividends
J & J Snack Foods pays an annual dividend of $3.20 per share and has a dividend yield of 4.0%. JBS pays an annual dividend of $1.05 per share and has a dividend yield of 7.3%. J & J Snack Foods pays out 123.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. JBS pays out 57.1% of its earnings in the form of a dividend. J & J Snack Foods has increased its dividend for 20 consecutive years. JBS is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Ratings
This is a summary of current ratings and price targets for J & J Snack Foods and JBS, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| J & J Snack Foods | 1 | 1 | 2 | 0 | 2.25 |
| JBS | 0 | 0 | 3 | 0 | 3.00 |
Profitability
This table compares J & J Snack Foods and JBS’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| J & J Snack Foods | 3.23% | 8.93% | 6.07% |
| JBS | 2.43% | 24.07% | 5.01% |
Insider and Institutional Ownership
76.0% of J & J Snack Foods shares are held by institutional investors. Comparatively, 0.1% of JBS shares are held by institutional investors. 20.4% of J & J Snack Foods shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares J & J Snack Foods and JBS”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| J & J Snack Foods | $1.58 billion | 0.96 | $65.60 million | $2.60 | 31.06 |
| JBS | $77.18 billion | 0.21 | $1.77 billion | $1.84 | 7.85 |
JBS has higher revenue and earnings than J & J Snack Foods. JBS is trading at a lower price-to-earnings ratio than J & J Snack Foods, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
J & J Snack Foods has a beta of 0.4, indicating that its share price is 60% less volatile than the S&P 500. Comparatively, JBS has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500.
Summary
J & J Snack Foods beats JBS on 9 of the 17 factors compared between the two stocks.
About J & J Snack Foods
J&J Snack Foods Corp. engages in the manufacturing of nutritional snack foods and distribution of frozen beverages to the food service and retail supermarket industries. It operates through the following segments: Food Service, Retail Supermarkets, and Frozen Beverages. The Food Service segment includes soft pretzels, frozen novelties, churros, handheld products, and baked goods. The Retail Supermarkets segment offers soft pretzel products including Superpretzel, frozen juice treats and desserts, including Luigi’s real Italian ice, Minute Maid juice bars and soft frozen lemonade, Whole Fruit frozen fruit bars and sorbet, Philly Swirl cups and sticks, ICEE Squeeze-Up Tubes and dough enrobed handheld products including Patio burritos. The Frozen Beverages segment provides frozen beverages to the food service industry primarily under the names ICEE, SLUSH PUPPIE, and PARROT ICE in the United States, Mexico, and Canada, as well as repair and maintenance services. The company was founded by Gerald B. Shreiber in 1971 and is headquartered in Mount Laurel, NJ.
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.
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