Critical Analysis: JBS (OTCMKTS:JBSAY) versus CIMG (NASDAQ:IMG)

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

Valuation and Earnings

This table compares CIMG and JBS”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CIMG	$10.30 million	0.21	-$4.88 million	($4.00)	-0.06
JBS	$77.18 billion	0.21	$1.77 billion	$1.84	7.85

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

Risk & Volatility

CIMG has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500. Comparatively, JBS has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for CIMG and JBS, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CIMG	1	0	0	0	1.00
JBS	0	0	3	0	3.00

JBS has a consensus target price of $18.33, indicating a potential upside of 26.96%. Given JBS’s stronger consensus rating and higher possible upside, analysts clearly believe JBS is more favorable than CIMG.

Institutional & Insider Ownership

23.4% of CIMG shares are owned by institutional investors. Comparatively, 0.1% of JBS shares are owned by institutional investors. 0.1% of CIMG shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CIMG	N/A	-23.59%	-15.90%
JBS	2.43%	24.07%	5.01%

Summary

JBS beats CIMG on 10 of the 14 factors compared between the two stocks.

About CIMG

CIMG Inc. is a digital marketing, sales and distribution company for various consumer products with focuses on food and beverages. CIMG Inc., formerly known as NUZEE INC., is based in BEIJING.

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.