Head-To-Head Review: JBS (JBS) & Its Competitors

by · The Markets Daily

JBS (NYSE:JBSGet Free Report) is one of 330 publicly-traded companies in the “Food Products” industry, but how does it weigh in compared to its peers? We will compare JBS to similar businesses based on the strength of its valuation, profitability, analyst recommendations, risk, earnings, dividends and institutional ownership.

Profitability

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

Net MarginsReturn on EquityReturn on Assets
JBS1.22%12.00%2.47%
JBS Competitors-13.42%-146.31%-4.56%

Volatility and Risk

JBS has a beta of -1.67, suggesting that its share price is 267% less volatile than the S&P 500. Comparatively, JBS’s peers have a beta of -3.82, suggesting that their average share price is 482% less volatile than the S&P 500.

Earnings & Valuation

This table compares JBS and its peers top-line revenue, earnings per share and valuation.

Gross RevenueNet IncomePrice/Earnings Ratio
JBS$86.18 billion$2.02 billion13.29
JBS Competitors$7.40 billion$706.83 million-2,366.93

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

Analyst Ratings

This is a summary of current ratings and target prices for JBS and its peers, as provided by MarketBeat.

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
JBS02512.88
JBS Competitors2374821182884022.35

JBS presently has a consensus target price of $18.42, indicating a potential upside of 35.85%. As a group, “Food Products” companies have a potential upside of 11.40%. Given JBS’s stronger consensus rating and higher probable upside, analysts clearly believe JBS is more favorable than its peers.

Institutional & Insider Ownership

39.0% of shares of all “Food Products” companies are owned by institutional investors. 18.1% of shares of all “Food Products” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

JBS pays an annual dividend of $1.00 per share and has a dividend yield of 7.4%. JBS pays out 98.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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 peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

JBS beats its peers on 11 of the 15 factors compared.

JBS Company Profile

(Get Free Report)

JBS N.V., together with its subsidiaries, operates as a protein and food company worldwide. The company offers beef, pork, chicken, poultry, fish, and lamb products; cooked frozen meat; plant based products; and other food products. It also sells leather, leather, hygiene and cleaning products, collagen, metal packaging, biodiesel, and others, as well as wet blue leather, semi-finished, and finished leather products. In addition, the company is involved in beef processing, such as slaughtering, refrigerating, industrializing, and production of canned beef by-products, as well as fish processing; leather production, processing, and commercialization; production and commercialization of steel cans, plastic resin, soap base for production, soap bar, biodiesel, glycerin, olein, oily acid, collagen, and wrapper derived from cattle tripe; industrial waste management; cold storage; and purchase and sale of soybeans, tallow, palm oil, caustic soda, and stearin. Further, it engages in chicken and pork processing, including raising, slaughtering, and processing of broiler chickens and hogs; production and commercialization of beef and food products; production of pet food and concentrates; electric power production, cogeneration, and commercialization; operates distribution centers and harbors; and provides transportation services and dog biscuits. Additionally, it produces beef jerky; offers cattle fattening and warehousing services; operates logistics; and trades in by products from processing. The company was founded in 1953 and is based in Amstelveen, Netherlands.