J M Smucker (NYSE: SJM) and Seneca Foods Corp Class A (NASDAQ:SENEA) 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, earnings, risk, dividends, profitability and analyst recommendations.
J M Smucker pays an annual dividend of $3.12 per share and has a dividend yield of 2.8%. Seneca Foods Corp Class A does not pay a dividend. J M Smucker pays out 39.2% of its earnings in the form of a dividend. J M Smucker has increased its dividend for 16 consecutive years.
Insider & Institutional Ownership
80.0% of J M Smucker shares are owned by institutional investors. Comparatively, 54.8% of Seneca Foods Corp Class A shares are owned by institutional investors. 3.9% of J M Smucker shares are owned by company insiders. Comparatively, 15.5% of Seneca Foods Corp Class A shares are owned 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.
This is a summary of current ratings for J M Smucker and Seneca Foods Corp Class A, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|J M Smucker||4||5||5||0||2.07|
|Seneca Foods Corp Class A||0||0||0||0||N/A|
J M Smucker currently has a consensus target price of $120.45, suggesting a potential upside of 8.48%. Given J M Smucker’s higher possible upside, equities analysts clearly believe J M Smucker is more favorable than Seneca Foods Corp Class A.
This table compares J M Smucker and Seneca Foods Corp Class A’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|J M Smucker||18.19%||12.20%||5.84%|
|Seneca Foods Corp Class A||-0.62%||1.31%||0.51%|
Volatility & Risk
J M Smucker has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500. Comparatively, Seneca Foods Corp Class A has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500.
Earnings and Valuation
This table compares J M Smucker and Seneca Foods Corp Class A’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|J M Smucker||$7.36 billion||1.71||$1.34 billion||$7.96||13.95|
|Seneca Foods Corp Class A||$1.31 billion||0.20||-$13.81 million||N/A||N/A|
J M Smucker has higher revenue and earnings than Seneca Foods Corp Class A.
J M Smucker beats Seneca Foods Corp Class A on 11 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 four segments: U.S. Retail Coffee, U.S. Retail Consumer Foods, U.S. Retail Pet Foods, and International and Away From Home. The company primarily offers coffee, pet food and pet snacks, peanut butter, fruit spreads, shortening and oils, baking mixes and ready-to-spread frostings, frozen sandwiches, flour and baking ingredients, juices and beverages, and portion control products. It also provides dog snacks, natural shelf stable juices, ice cream toppings, flours, pickles, canned milk, premium pet food products, and foodservice hot beverages. The company offers its products under the Folgers, Dunkin' Donuts, Café Bustelo, Jif, Smucker's, Crisco, Pillsbury, Uncrustables, Meow Mix, Milk-Bone, Natural Balance, Kibbles ?n Bits, 9Lives, Pup-Peroni, Nature's Recipe, Folgers and Smucker's, 1850, Folgers Simply Gourmet, Robin Hood, Five Roses, R.W. Knudsen Family, Sahale Snacks, Bick's, Rachael Ray, and Nutrish brands. It sells its products through direct sales and brokers to food retailers and wholesalers, club stores, pet specialty stores, discount and dollar stores, drug stores, military commissaries, mass merchandisers, natural foods stores and distributors, and online retailers; and through retail channels, and foodservice distributors and operators. The company was founded in 1897 and is headquartered in Orrville, Ohio.
About Seneca Foods Corp Class A
Seneca Foods Corporation provides packaged fruits and vegetables in the United States and internationally. It offers canned and frozen produce, bottled produce, snack chips, and other food products under the private label, as well as under various national and regional brands that the company owns or licenses, including Seneca, Libby's, Aunt Nellie's, READ, Green Valley, Cherryman, and Seneca Farms. The company also packs Green Giant, Le Sueur, and other brands of canned vegetables, as well as selected Green Giant frozen vegetables for B&G Foods North America under a contract packing agreement. In addition, it is involved in the sale of cans and ends, as well as trucking and aircraft operations. The company offers its products to grocery outlets, including supermarkets, mass merchandisers, limited assortment stores, club stores, and dollar stores; and food service distributors, industrial markets, other food packagers, and export customers in 90 countries, as well as to federal, state, and local governments for school and other feeding programs. Seneca Foods Corporation was founded in 1949 and is headquartered in Marion, New York.
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