Comparing J. M. Smucker (NYSE:SJM) & Mission Produce (NASDAQ:AVO)

J. M. Smucker (NYSE:SJM) and Mission Produce (NASDAQ:AVO) are both consumer staples companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, earnings, risk, profitability and dividends.

Institutional and Insider Ownership

81.7% of J. M. Smucker shares are owned by institutional investors. Comparatively, 63.6% of Mission Produce shares are owned by institutional investors. 2.8% of J. M. Smucker shares are owned by company insiders. Comparatively, 30.8% of Mission Produce shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations for J. M. Smucker and Mission Produce, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
J. M. Smucker	0	7	11	0	2.61
Mission Produce	1	0	4	1	2.83

J. M. Smucker currently has a consensus price target of $136.00, indicating a potential upside of 2.22%. Mission Produce has a consensus price target of $16.00, indicating a potential upside of 36.45%. Given Mission Produce’s stronger consensus rating and higher possible upside, analysts plainly believe Mission Produce is more favorable than J. M. Smucker.

Profitability

This table compares J. M. Smucker and Mission Produce’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
J. M. Smucker	2.51%	19.85%	6.76%
Mission Produce	0.12%	5.91%	3.41%

Volatility & Risk

J. M. Smucker has a beta of 0.26, suggesting that its stock price is 74% less volatile than the S&P 500. Comparatively, Mission Produce has a beta of 0.45, suggesting that its stock price is 55% less volatile than the S&P 500.

Valuation and Earnings

This table compares J. M. Smucker and Mission Produce”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
J. M. Smucker	$9.16 billion	1.55	-$138.70 million	$2.14	62.17
Mission Produce	$1.34 billion	0.77	$37.70 million	$0.03	390.87

Mission Produce has lower revenue, but higher earnings than J. M. Smucker. J. M. Smucker is trading at a lower price-to-earnings ratio than Mission Produce, indicating that it is currently the more affordable of the two stocks.

Summary

J. M. Smucker beats Mission Produce on 8 of the 15 factors compared between the two stocks.

About J. M. Smucker

The J. M. Smucker Company is a food and beverage manufacturer best known for brands including Smucker’s, Jif, Folgers, Café Bustelo and Uncrustables. Its products include fruit spreads, peanut butter, coffee, frozen handheld sandwiches and sweet baked snacks, as well as pet food and treats sold under brands such as Milk-Bone and Meow Mix. Founded in 1897 by Jerome Monroe Smucker in Orrville, Ohio, the company has expanded from its original apple butter business through the development and acquisition of consumer food brands.

About Mission Produce

Mission Produce is a global producer, packer and distributor of fresh avocados and other fruit. The company sources produce from growing regions around the world and provides services that include packing, ripening, quality control and distribution. Founded in 1983 by Steve Barnard, Mission Produce has built a global supply chain serving customers in North America, Europe and Asia. Its sourcing network includes countries such as Mexico, Peru, Chile and Colombia, helping supply fruit across different growing seasons.