Contrasting BBB Foods (NYSE:TBBB) & Lion (OTCMKTS:LIOPF)

Lion (OTCMKTS:LIOPF) and BBB Foods (NYSE:TBBB) are both mid-cap consumer staples companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.

Volatility and Risk

Lion has a beta of 0.34, indicating that its share price is 66% less volatile than the S&P 500. Comparatively, BBB Foods has a beta of -0.14, indicating that its share price is 114% less volatile than the S&P 500.

Earnings & Valuation

This table compares Lion and BBB Foods”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lion	$2.73 billion	1.06	$139.90 million	$0.71	14.79
BBB Foods	$3.15 billion	1.21	$18.36 million	($0.84)	-39.82

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

Analyst Recommendations

This is a breakdown of recent recommendations for Lion and BBB Foods, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lion	0	0	0	0	0.00
BBB Foods	2	2	3	0	2.14

BBB Foods has a consensus price target of $35.80, suggesting a potential upside of 7.03%. Given BBB Foods’ stronger consensus rating and higher possible upside, analysts clearly believe BBB Foods is more favorable than Lion.

Profitability

This table compares Lion and BBB Foods’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lion	7.05%	9.21%	6.14%
BBB Foods	-2.61%	-44.56%	-7.47%

Institutional & Insider Ownership

8.4% of BBB Foods shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Lion beats BBB Foods on 7 of the 13 factors compared between the two stocks.

About Lion

Lion Corporation manufactures and sells consumer and industrial products in Japan and internationally. It operates through three segments: Consumer Products Business, Industrial Products Business, and Overseas Business. The company provides dental and oral care products, including toothpastes, toothbrushes, dental floss, dental rinses, mouthwashes, periodontitis ointments, and denture products; body care products, such as shampoos and conditioners, hand soaps, sanitizers, wet wipes, body washes, skin and acne care products, antiperspirants and deodorants, hair-nourishment treatments, men's care and toiletries products, and foot care products. It offers antipyretic analgesics, eye drops and eye care products, cold medicines, gargles, cold relief products, topical anti-inflammatory analgesics, antidiarrheal and gastrointestinal medicines, health tonic drinks and vitamin supplements, acne and anti-drowsiness medicines, and dermatologic agents. In addition, the company offers fabric care products, such as laundry detergent, delicate detergent, prewash treatment, stain remover, bleach, and fabric softener; clothing care products; household cleaners; kitchen cleanup products comprises dishwashing detergents and antibacterial and deodorizing products; and food preparation products. Further, it provides health and beauty food products consisting of supplements and health tonic drinks; specialty chemicals, and chemical products, include rubber processing and additive agents, mandrel release agents, fatty acid methyl esters, plant-based electrical insulating oils, concrete admixtures, surfactants, and cosmetics ingredients, as well as electro-conductive carbon black and pressure-sensitive adhesives; pet supplies; and gift and special-order products. The company was founded in 1891 and is headquartered in Tokyo, Japan.

About BBB Foods

BBB Foods Inc., through its subsidiaries, operates a chain of grocery retail stores in Mexico. It offers household cleaning, personal hyenine, cosmetics and beauty, pharmacy, and general merchandise products, as well as jellies and desserts, foods and drinks, pet supplies, coffee, tea, chocolates, breads, dry and frozen foods, snacks and sweets, and toilet papers and napkins. The company also provides branded, private label, and spot products. It serves low-to-middle income households through online channels. BBB Foods Inc. was incorporated in 2004 and is headquartered in Mexico City, Mexico.