Critical Survey: BBB Foods (TBBB) versus The Competition

BBB Foods (NYSE:TBBB) is one of 149 publicly-traded companies in the “Consumer Staples Distribution & Retail” industry, but how does it weigh in compared to its peers? We will compare BBB Foods to similar businesses based on the strength of its institutional ownership, profitability, risk, earnings, analyst recommendations, valuation and dividends.

Analyst Ratings

This is a breakdown of current ratings and price targets for BBB Foods and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BBB Foods	0	3	7	0	2.70
BBB Foods Competitors	2235	8248	10024	455	2.41

BBB Foods presently has a consensus price target of $51.88, suggesting a potential downside of 8.07%. As a group, “Consumer Staples Distribution & Retail” companies have a potential upside of 62.20%. Given BBB Foods’ peers higher possible upside, analysts plainly believe BBB Foods has less favorable growth aspects than its peers.

Risk & Volatility

BBB Foods has a beta of 0.02, indicating that its stock price is 98% less volatile than the S&P 500. Comparatively, BBB Foods’ peers have a beta of 0.43, indicating that their average stock price is 57% less volatile than the S&P 500.

Insider and Institutional Ownership

8.4% of BBB Foods shares are owned by institutional investors. Comparatively, 45.0% of shares of all “Consumer Staples Distribution & Retail” companies are owned by institutional investors. 19.7% of shares of all “Consumer Staples Distribution & Retail” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BBB Foods	-3.68%	-72.47%	-10.71%
BBB Foods Competitors	-25.67%	1.91%	2.62%

Earnings & Valuation

This table compares BBB Foods and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
BBB Foods	$4.08 billion	-$148.23 million	-35.05
BBB Foods Competitors	$35.04 billion	$846.03 million	15.85

BBB Foods’ peers have higher revenue and earnings than BBB Foods. BBB Foods is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

BBB Foods peers beat BBB Foods on 10 of the 13 factors compared.

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.