Contrasting Associated British Foods (OTCMKTS:ASBFY) and BAB (OTCMKTS:BABB)

Associated British Foods (OTCMKTS:ASBFY) and BAB (OTCMKTS:BABB) are both consumer staples companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, risk, institutional ownership, valuation, dividends and profitability.

Analyst Ratings

This is a breakdown of recent recommendations for Associated British Foods and BAB, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Associated British Foods	3	1	0	1	1.80
BAB	0	0	0	0	0.00

Dividends

Associated British Foods pays an annual dividend of $0.96 per share and has a dividend yield of 3.4%. BAB pays an annual dividend of $0.04 per share and has a dividend yield of 4.5%. BAB pays out 57.1% of its earnings in the form of a dividend.

Profitability

This table compares Associated British Foods and BAB’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Associated British Foods	N/A	N/A	N/A
BAB	17.00%	16.79%	11.62%

Volatility & Risk

Associated British Foods has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500. Comparatively, BAB has a beta of 0.24, indicating that its share price is 76% less volatile than the S&P 500.

Earnings and Valuation

This table compares Associated British Foods and BAB”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Associated British Foods	$25.41 billion	0.80	$1.34 billion	N/A	N/A
BAB	$3.55 million	1.82	$520,000.00	$0.07	12.71

Associated British Foods has higher revenue and earnings than BAB.

Summary

Associated British Foods beats BAB on 6 of the 11 factors compared between the two stocks.

About Associated British Foods

Associated British Foods plc operates as a diversified food, ingredients, and retail company worldwide. It operates through five segments: Grocery, Ingredients, Agriculture, Sugar, and Retail. The Grocery segment manufactures and sells grocery products, including hot beverages, sugar and sweeteners, vegetable oils, balsamic vinegars, bread and baked goods, cereals, ethnic foods, and meat products to retail, wholesale, and foodservice businesses. The Ingredients segment manufactures bakers' yeast, bakery ingredients, enzymes, lipids, yeast extracts, and cereal specialties. The Agriculture segment manufactures and sells animal feeds; and provides other products and services for the agriculture sector. The Sugar segment is involved in growing, processing, and selling sugar beet and sugar cane to industrial users. The Retail segment is involved in buying and merchandising clothing and accessories through the Primark and Penneys retail chains, which offer women's, men's, and kids wear, as well as beauty, homeware, and accessories. The company was incorporated in 1934 and is headquartered in London, the United Kingdom. Associated British Foods plc operates as a subsidiary of Wittington Investments Limited.

About BAB

BAB, Inc. franchises and licenses bagel and muffin retail units under the Big Apple Bagels (BAB), My Favorite Muffin (MFM), and SweetDuet (SD) trade names in the United States. It's BAB franchised brand includes daily baked bagels, flavored cream cheeses, premium coffees, gourmet bagel sandwiches, and other related products; and MFM brand comprises various freshly baked muffins and coffees, as well as units operating as My Favorite Muffin Your All Day Bakery Café features specialty bagel sandwiches and related products. The company's SD brand includes frozen yogurt products. BAB, Inc. was founded in 1993 and is based in Deerfield, Illinois.