Contrasting JBS (NYSE:JBS) & Mondelez International (NASDAQ:MDLZ)

Mondelez International (NASDAQ:MDLZ) and JBS (NYSE:JBS) are both consumer staples companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.

Risk and Volatility

Mondelez International has a beta of 0.39, indicating that its share price is 61% less volatile than the S&P 500. Comparatively, JBS has a beta of -1.67, indicating that its share price is 267% less volatile than the S&P 500.

Dividends

Mondelez International pays an annual dividend of $2.00 per share and has a dividend yield of 3.2%. JBS pays an annual dividend of $1.00 per share and has a dividend yield of 8.0%. Mondelez International pays out 73.5% of its earnings in the form of a dividend. 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. Mondelez International has increased its dividend for 13 consecutive years.

Profitability

This table compares Mondelez International and JBS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mondelez International	8.86%	14.07%	5.16%
JBS	1.22%	12.00%	2.47%

Valuation and Earnings

This table compares Mondelez International and JBS”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mondelez International	$38.54 billion	2.07	$2.45 billion	$2.72	22.96
JBS	$86.18 billion	0.11	$2.02 billion	$1.02	12.33

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

Insider and Institutional Ownership

78.3% of Mondelez International shares are held by institutional investors. 0.5% of Mondelez International 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 Ratings

This is a summary of recent ratings and price targets for Mondelez International and JBS, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mondelez International	0	10	14	1	2.64
JBS	1	1	5	1	2.75

Mondelez International presently has a consensus target price of $67.30, suggesting a potential upside of 7.78%. JBS has a consensus target price of $18.42, suggesting a potential upside of 46.45%. Given JBS’s stronger consensus rating and higher probable upside, analysts clearly believe JBS is more favorable than Mondelez International.

Summary

Mondelez International beats JBS on 13 of the 17 factors compared between the two stocks.

About Mondelez International

Mondelez International, Inc., through its subsidiaries, manufactures, markets, and sells snack food and beverage products in the Latin America, North America, Asia, the Middle East, Africa, and Europe. It provides biscuits and baked snacks, including cookies, crackers, salted snacks, snack bars, and cakes and pastries; chocolates; and gums and candies, as well as various cheese and grocery, and powdered beverage products. The company's brand portfolio includes Oreo, Ritz, LU, CLIF Bar, and Tate's Bake Shop biscuits and baked snacks, as well as Cadbury Dairy Milk, Milka, and Toblerone chocolate. It serves supermarket chains, wholesalers, supercenters, club stores, mass merchandisers, distributors, convenience stores, gasoline stations, drug stores, value stores, and other retail food outlets through direct store delivery, company-owned and satellite warehouses, distribution centers, third party distributors, and other facilities, as well as through independent sales offices and agents. The company also sells products directly to businesses and consumers through e-retail platforms, retailer digital platforms, as well as through its direct-to-consumer websites and social media platforms. Mondelez International, Inc. was formerly known as Kraft Foods Inc. and changed its name to Mondelez International, Inc. in October 2012. The company was incorporated in 2000 and is headquartered in Chicago, Illinois.

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.