Financial Analysis: John B. Sanfilippo & Son (NASDAQ:JBSS) versus Mama’s Creations (NASDAQ:MAMA)

John B. Sanfilippo & Son (NASDAQ:JBSS) and Mama’s Creations (NASDAQ:MAMA) are both small-cap consumer staples companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, institutional ownership, analyst recommendations, risk and profitability.

Valuation and Earnings

This table compares John B. Sanfilippo & Son and Mama’s Creations”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
John B. Sanfilippo & Son	$1.11 billion	0.85	$58.93 million	$5.99	13.38
Mama’s Creations	$123.33 million	5.12	$3.71 million	$0.11	141.18

John B. Sanfilippo & Son has higher revenue and earnings than Mama’s Creations. John B. Sanfilippo & Son is trading at a lower price-to-earnings ratio than Mama’s Creations, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares John B. Sanfilippo & Son and Mama’s Creations’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
John B. Sanfilippo & Son	6.15%	19.54%	11.71%
Mama’s Creations	3.08%	16.72%	9.28%

Institutional & Insider Ownership

70.6% of John B. Sanfilippo & Son shares are held by institutional investors. Comparatively, 45.2% of Mama’s Creations shares are held by institutional investors. 30.2% of John B. Sanfilippo & Son shares are held by insiders. Comparatively, 6.5% of Mama’s Creations shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and target prices for John B. Sanfilippo & Son and Mama’s Creations, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
John B. Sanfilippo & Son	0	2	1	0	2.33
Mama’s Creations	0	2	4	0	2.67

John B. Sanfilippo & Son currently has a consensus target price of $109.00, suggesting a potential upside of 36.05%. Mama’s Creations has a consensus target price of $17.60, suggesting a potential upside of 13.33%. Given John B. Sanfilippo & Son’s higher possible upside, equities analysts clearly believe John B. Sanfilippo & Son is more favorable than Mama’s Creations.

Volatility and Risk

John B. Sanfilippo & Son has a beta of 0.36, suggesting that its share price is 64% less volatile than the S&P 500. Comparatively, Mama’s Creations has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500.

Summary

John B. Sanfilippo & Son beats Mama’s Creations on 9 of the 14 factors compared between the two stocks.

About John B. Sanfilippo & Son

John B. Sanfilippo & Son, Inc. engages in the processing and distribution of nuts and nut-related products. It offers peanuts, pecans, cashews, walnuts, almonds, and other nuts under the brands of Fisher, Orchard Valley Harvest, Squirrel Brand, and Southern Style Nuts. The company was founded by Gaspare Sanfilippo and John B. Sanfilippo in 1922 and is headquartered in Elgin, IL.

About Mama’s Creations

Mama’s Creations, Inc. engages in the marketing, manufacturing, and distribution of beef meatballs with sauce, turkey meatballs with sauce, beef meat loaf, sausage and peppers, chicken parmesan, and other similar meats and sauces. Its products include beef meatballs, turkey meatballs, stuffed meatballs, lasagna roll ups, retail ready meals, bulk deli, single-size pasta bowls, and packaged refrigerated products. Its brands include MamaMancini’s, Creative Salads, and The Olive Branch. The company was founded by Daniel Dougherty on July 22, 2009 and is headquartered in East Rutherford, NJ.