Head-To-Head Review: JBS (JBSAY) versus Its Competitors

JBS (OTCMKTS:JBSAY) is one of 330 publicly-traded companies in the “Food Products” industry, but how does it contrast to its rivals? We will compare JBS to similar companies based on the strength of its risk, earnings, analyst recommendations, profitability, institutional ownership, dividends and valuation.

Earnings and Valuation

This table compares JBS and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
JBS	$77.18 billion	$1.77 billion	7.85
JBS Competitors	$13.75 billion	$706.85 million	-324.49

JBS has higher revenue and earnings than its rivals. JBS is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Dividends

JBS pays an annual dividend of $1.05 per share and has a dividend yield of 7.3%. JBS pays out 57.1% of its earnings in the form of a dividend. As a group, “Food Products” companies pay a dividend yield of 11.7% and pay out 31.4% of their earnings in the form of a dividend. JBS lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares JBS and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
JBS	2.43%	24.07%	5.01%
JBS Competitors	-13.85%	-147.19%	-4.44%

Analyst Recommendations

This is a breakdown of current ratings and target prices for JBS and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JBS	0	0	2	0	3.00
JBS Competitors	2352	8189	8268	398	2.35

JBS currently has a consensus price target of $18.75, suggesting a potential upside of 29.85%. As a group, “Food Products” companies have a potential upside of 12.82%. Given JBS’s stronger consensus rating and higher possible upside, research analysts plainly believe JBS is more favorable than its rivals.

Insider & Institutional Ownership

0.1% of JBS shares are owned by institutional investors. Comparatively, 39.5% of shares of all “Food Products” companies are owned by institutional investors. 18.7% of shares of all “Food Products” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility and Risk

JBS has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500. Comparatively, JBS’s rivals have a beta of -3.82, indicating that their average share price is 482% less volatile than the S&P 500.

Summary

JBS beats its rivals on 10 of the 15 factors compared.

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.