Critical Comparison: JBS (JBSAY) and Its Peers

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

Earnings and Valuation

This table compares JBS and its peers top-line 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	$7.22 billion	$700.85 million	-2,366.47

JBS has higher revenue and earnings than its peers. JBS is trading at a higher price-to-earnings ratio than its peers, 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 12.1% and pay out 31.4% of their earnings in the form of a dividend. JBS lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares JBS and its peers’ 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	-13.49%	-146.39%	-4.61%

Volatility & 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 peers have a beta of -3.82, indicating that their average share price is 482% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for JBS and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JBS	0	0	3	0	3.00
JBS Competitors	2382	8222	8302	402	2.35

JBS presently has a consensus price target of $18.33, suggesting a potential upside of 26.96%. As a group, “Food Products” companies have a potential upside of 16.20%. Given JBS’s stronger consensus rating and higher possible upside, equities analysts clearly believe JBS is more favorable than its peers.

Institutional and Insider Ownership

0.1% of JBS shares are held by institutional investors. Comparatively, 39.2% of shares of all “Food Products” companies are held by institutional investors. 18.1% of shares of all “Food Products” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

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

JBS Company Profile

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.