Analyzing JBS (OTCMKTS:JBSAY) & Coffee (NASDAQ:JVA)

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

Insider & Institutional Ownership

0.1% of JBS shares are owned by institutional investors. 21.9% of Coffee shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for JBS and Coffee, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JBS	0	0	3	0	3.00
Coffee	0	2	0	0	2.00

JBS presently has a consensus price target of $18.33, indicating a potential upside of 26.96%. Coffee has a consensus price target of $9.50, indicating a potential upside of 88.87%. Given Coffee’s higher possible upside, analysts clearly believe Coffee is more favorable than JBS.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JBS	$77.18 billion	0.21	$1.77 billion	$1.84	7.85
Coffee	$96.28 million	0.30	$1.40 million	$0.84	5.99

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
JBS	2.43%	24.07%	5.01%
Coffee	4.85%	16.20%	11.61%

Dividends

JBS pays an annual dividend of $1.05 per share and has a dividend yield of 7.3%. Coffee pays an annual dividend of $0.08 per share and has a dividend yield of 1.6%. JBS pays out 57.1% of its earnings in the form of a dividend. Coffee pays out 9.5% 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.

Volatility and Risk

JBS has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500. Comparatively, Coffee has a beta of 1.41, indicating that its stock price is 41% more volatile than the S&P 500.

Summary

JBS beats Coffee on 9 of the 16 factors compared between the two stocks.

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.

About Coffee

Coffee Holding Co., Inc. engages in manufacturing, roasting, packaging, marketing, and distributing roasted and blended coffees in the United States, Australia, Canada, England, and China. It offers wholesale green coffee products, including unroasted raw beans that are sold to large, medium, and small roasters, as well as coffee shop operators; and roasts, blends, packages, and sells coffee under private labels in cans, brick packages, and instants of various sizes. The company also roasts and blends company label branded coffee to supermarkets, wholesalers, and individually owned stores; and sells tabletop coffee roasting equipment, instant coffees, and tea products for its customers. Its coffee brands include Cafe Caribe, Don Manuel, S&W, Cafe Supremo, Via Roma, Premier Roasters, and Harmony Bay. The company was formerly known as Transpacific International Group Corp and changed its name to Coffee Holding Co., Inc. in April 1998. Coffee Holding Co., Inc. was founded in 1971 and is headquartered in Staten Island, New York.