Nomad Foods (NYSE:NOMD) and JBS (OTCMKTS:JBSAY) Head to Head Comparison
by Danessa Lincoln · The Markets DailyJBS (OTCMKTS:JBSAY – Get Free Report) and Nomad Foods (NYSE:NOMD – Get Free Report) are both consumer staples companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, earnings, analyst recommendations, profitability and risk.
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 6.3%. 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.
Analyst Recommendations
This is a summary of recent ratings 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 target price of $18.33, suggesting a potential upside of 26.96%. Nomad Foods has a consensus target price of $13.25, suggesting a potential upside of 22.63%. Given JBS’s stronger consensus rating and higher probable upside, equities research analysts clearly believe JBS is more favorable than Nomad Foods.
Institutional & Insider Ownership
0.1% of JBS shares are held by institutional investors. Comparatively, 75.3% of Nomad Foods shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Risk & Volatility
JBS has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500. Comparatively, Nomad Foods has a beta of 0.69, suggesting that its share 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% |
Valuation & Earnings
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 | 0.44 | $154.66 million | $1.02 | 10.59 |
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.
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.