Mission Produce (NASDAQ:AVO) versus J. M. Smucker (NYSE:SJM) Critical Review

J. M. Smucker (NYSE:SJM) and Mission Produce (NASDAQ:AVO) are both consumer staples companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.

Profitability

This table compares J. M. Smucker and Mission Produce’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
J. M. Smucker	2.51%	19.85%	6.76%
Mission Produce	0.12%	5.91%	3.41%

Risk & Volatility

J. M. Smucker has a beta of 0.26, indicating that its stock price is 74% less volatile than the S&P 500. Comparatively, Mission Produce has a beta of 0.45, indicating that its stock price is 55% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for J. M. Smucker and Mission Produce, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
J. M. Smucker	0	7	11	0	2.61
Mission Produce	1	0	4	1	2.83

J. M. Smucker currently has a consensus price target of $136.00, suggesting a potential upside of 2.06%. Mission Produce has a consensus price target of $16.00, suggesting a potential upside of 34.34%. Given Mission Produce’s stronger consensus rating and higher possible upside, analysts plainly believe Mission Produce is more favorable than J. M. Smucker.

Insider & Institutional Ownership

81.7% of J. M. Smucker shares are held by institutional investors. Comparatively, 63.6% of Mission Produce shares are held by institutional investors. 2.8% of J. M. Smucker shares are held by insiders. Comparatively, 30.8% of Mission Produce shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares J. M. Smucker and Mission Produce”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
J. M. Smucker	$9.05 billion	1.57	-$138.70 million	$2.14	62.27
Mission Produce	$1.39 billion	0.75	$37.70 million	$0.03	397.00

Mission Produce has lower revenue, but higher earnings than J. M. Smucker. J. M. Smucker is trading at a lower price-to-earnings ratio than Mission Produce, indicating that it is currently the more affordable of the two stocks.

Summary

J. M. Smucker beats Mission Produce on 8 of the 15 factors compared between the two stocks.

About J. M. Smucker

The J. M. Smucker Company manufactures and markets branded food and beverage products worldwide. It operates in three segments: U.S. Retail Pet Foods, U.S. Retail Coffee, and U.S. Retail Consumer Foods. The company offers mainstream roast, ground, single serve, and premium coffee; peanut butter and specialty spreads; fruit spreads, toppings, and syrups; jelly products; nut mix products; shortening and oils; frozen sandwiches and snacks; pet food and pet snacks; and foodservice hot beverage, foodservice portion control, and flour products, as well as dog and cat food, frozen handheld products, juices and beverages, and baking mixes and ingredients. It provides its products under the Meow Mix, Milk-Bone, Pup-Peroni, Canine Carry Outs, Folgers, Café Bustelo, Dunkin', Folgers, Café Bustelo, 1850, Jif, Smucker's, Smucker's Uncrustables, Robin Hood, and Five Roses. The company sells its products through direct sales and brokers to food retailers, club stores, discount and dollar stores, online retailers, pet specialty stores, natural foods stores and distributors, drug stores, military commissaries, and mass merchandisers. Smucker Company was founded in 1897 and is headquartered in Orrville, Ohio.

About Mission Produce

Mission Produce, Inc. engages in the sourcing, farming, packaging, marketing, and distribution of avocados, mangoes, and blueberries to food retailers, distributors, and foodservice customers in the United States and internationally. The company operates through three segments, Marketing and Distribution; International Farming; and Blueberries. It also provides ripening, bagging, custom packing, logistical management, and quality assurance services. In addition, the company offers merchandising and promotional support, and insights on market trends, and training services. Mission Produce, Inc. was founded in 1983 and is headquartered in Oxnard, California.