Critical Analysis: JBS (JBS) vs. Its Rivals

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
JBS	1.22%	12.00%	2.47%
JBS Competitors	-13.53%	-146.29%	-4.56%

Earnings and Valuation

This table compares JBS and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
JBS	$91.17 billion	$2.02 billion	13.33
JBS Competitors	$7.25 billion	$702.22 million	-2,369.28

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

Insider and Institutional Ownership

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

Volatility and Risk

JBS has a beta of -1.65, meaning that its stock price is 265% less volatile than the S&P 500. Comparatively, JBS’s rivals have a beta of -3.84, meaning that their average stock price is 484% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for JBS and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JBS	0	2	5	1	2.88
JBS Competitors	2369	8206	8285	401	2.35

JBS currently has a consensus target price of $18.42, indicating a potential upside of 35.42%. As a group, “Food Products” companies have a potential upside of 10.85%. Given JBS’s stronger consensus rating and higher probable upside, equities analysts clearly believe JBS is more favorable than its rivals.

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 rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

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

About JBS

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.