Financial Comparison: JBS (OTCMKTS:JBSAY) & Strauss Group (OTCMKTS:SGLJF)

Strauss Group (OTCMKTS:SGLJF) and JBS (OTCMKTS:JBSAY) are both consumer staples companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, risk, institutional ownership and earnings.

Earnings & Valuation

This table compares Strauss Group and JBS”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Strauss Group	N/A	N/A	N/A	$2.07	18.36
JBS	$77.18 billion	0.21	$1.77 billion	$1.84	7.85

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

Dividends

Strauss Group pays an annual dividend of $1.11 per share and has a dividend yield of 2.9%. JBS pays an annual dividend of $1.05 per share and has a dividend yield of 7.3%. Strauss Group pays out 53.4% of its earnings in the form of a dividend. JBS pays out 57.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Insider & Institutional Ownership

4.6% of Strauss Group shares are held by institutional investors. Comparatively, 0.1% of JBS shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Strauss Group and JBS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Strauss Group	N/A	N/A	N/A
JBS	2.43%	24.07%	5.01%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Strauss Group and JBS, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Strauss Group	0	0	0	0	0.00
JBS	0	0	1	0	3.00

JBS has a consensus price target of $20.50, indicating a potential upside of 41.97%. Given JBS’s stronger consensus rating and higher probable upside, analysts clearly believe JBS is more favorable than Strauss Group.

Summary

JBS beats Strauss Group on 8 of the 12 factors compared between the two stocks.

About Strauss Group

Strauss Group Ltd., together with its subsidiaries, develops, manufactures, markets, sells, and distributes various food and beverage products in Israel, North America, Brazil, Europe, and internationally. The company operates through six segments: Health & Wellness; Fun & Indulgence; Israel Coffee; International Coffee; International Dips & Spreads; and Strauss Water. It offers yogurts, dairy desserts, soft cheeses, flavored milk beverages, chilled salads, cut vegetables, fresh pasta products, cereal and granola bars, honey products, olive oil, fruit preserves, and confitures, as well as plant-based dairy alternatives drinks, desserts, and cream. The company also provides sauces, dressings, spreads, natural juices, dry yeast, margarine, goat’s milk yogurt, tofu, butter spreads, cream cheeses, sweet snack bars, chocolate tablets, sweet spreads, candies, chewing gum, wafers, and salty snacks. In addition, it offers assorted coffee products, chocolate powders, drink powders, pastries, soft drinks, corn, juice powders, dips, and roasted coffee beans. Further, the company provides water purification, filtration, and carbonation systems, as well as coffee machines. It sells its products under various brands. The company was formerly known as Strauss-Elite Ltd. and changed its name to Strauss Group Ltd. in February 2007. Strauss Group Ltd. was incorporated in 1933 and is headquartered in Petah Tikva, Israel. Strauss Group Ltd., is a subsidiary of Strauss Holdings Ltd.

About JBS

JBS S.A., together with its subsidiaries, engages in the processing of animal protein worldwide. The company trades in beef, pork, chicken, poultry, fish, and lamb products; cooked frozen meat; plant based products; and other food products. It produces and commercializes leather, steel cans, plastic resin, personal care and cleaning products, and collagen, as well as wet blue leather, semi-finished, and finished leather products. In addition, it is involved in transportation, cold storage, industrial waste management solutions, recycling, and produces and commercializes electric power. Further, the company engages in the production and commercialization of raw ham and cooked ham; purchases and sells soybeans, tallow, palm oil, and caustic soda; and operates distribution centers and harbors. Additionally, it produces beef jerky; offers cattle fattening and warehousing services; operates logistics; and trades in by products from processing. The company was formerly known as Friboi Ltda. JBS S.A. was founded in 1953 and is headquartered in São Paulo, Brazil.