JBS (OTCMKTS:JBSAY) & Simply Good Foods (NASDAQ:SMPL) Head-To-Head Analysis
by Danessa Lincoln · The Markets DailySimply Good Foods (NASDAQ:SMPL – Get Free Report) and JBS (OTCMKTS:JBSAY – Get Free Report) are both consumer staples companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, valuation, earnings and dividends.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for Simply Good Foods and JBS, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Simply Good Foods | 1 | 9 | 3 | 0 | 2.15 |
| JBS | 0 | 0 | 3 | 0 | 3.00 |
Simply Good Foods presently has a consensus target price of $14.45, indicating a potential upside of 48.53%. JBS has a consensus target price of $18.33, indicating a potential upside of 26.96%. Given Simply Good Foods’ higher possible upside, research analysts clearly believe Simply Good Foods is more favorable than JBS.
Insider & Institutional Ownership
88.5% of Simply Good Foods shares are held by institutional investors. Comparatively, 0.1% of JBS shares are held by institutional investors. 8.8% of Simply Good Foods shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Volatility & Risk
Simply Good Foods has a beta of 0.17, meaning that its share price is 83% less volatile than the S&P 500. Comparatively, JBS has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500.
Profitability
This table compares Simply Good Foods and JBS’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Simply Good Foods | -14.28% | 9.34% | 6.67% |
| JBS | 2.43% | 24.07% | 5.01% |
Earnings and Valuation
This table compares Simply Good Foods and JBS”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Simply Good Foods | $1.45 billion | 0.59 | $103.61 million | ($2.17) | -4.48 |
| JBS | $77.18 billion | 0.21 | $1.77 billion | $1.84 | 7.85 |
JBS has higher revenue and earnings than Simply Good Foods. Simply Good Foods is trading at a lower price-to-earnings ratio than JBS, indicating that it is currently the more affordable of the two stocks.
Summary
JBS beats Simply Good Foods on 8 of the 13 factors compared between the two stocks.
About Simply Good Foods
The Simply Good Foods Company operates as a consumer-packaged food and beverage company in North America and internationally. The company develops, markets, and sells snacks and meal replacements. It offers protein bars, ready-to-drink shakes, sweet and salty snacks, cookies, protein chips, and recipes under the Atkins and Quest brand names. The company also provides confectionery products, such as full-size and mini peanut butter cups, and fudgey brownie and gooey caramel candy bites, chocolatey coated peanut candies, and coconutty caramel candy bars under Atkins Endulge brand name.It distributes its products to various retail channels, such as mass merchandise, grocery and drug channels, club stores, convenience stores, gas stations, and other channels. The company also sells its products through e-commerce channels, including questnutrition.com, atkins.com, amazon.com and others. The Simply Good Foods Company was founded in 2017 and is headquartered in Denver, Colorado.
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.