Analyzing BBB Foods (TBBB) & Its Peers

BBB Foods (NYSE:TBBB) is one of 63 public companies in the “Grocery stores” industry, but how does it compare to its peers? We will compare BBB Foods to similar companies based on the strength of its analyst recommendations, valuation, institutional ownership, risk, earnings, profitability and dividends.

Insider and Institutional Ownership

8.4% of BBB Foods shares are held by institutional investors. Comparatively, 42.8% of shares of all “Grocery stores” companies are held by institutional investors. 24.3% of shares of all “Grocery stores” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares BBB Foods and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
BBB Foods	$61.89 billion	-$17.30 million	135.45
BBB Foods Competitors	$38.06 billion	$567.26 million	12.84

BBB Foods has higher revenue, but lower earnings than its peers. BBB Foods 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.

Volatility & Risk

BBB Foods has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500. Comparatively, BBB Foods’ peers have a beta of 0.71, suggesting that their average share price is 29% less volatile than the S&P 500.

Profitability

This table compares BBB Foods and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BBB Foods	N/A	N/A	N/A
BBB Foods Competitors	1.15%	10.46%	4.07%

Analyst Recommendations

This is a summary of current ratings and price targets for BBB Foods and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BBB Foods	0	3	4	0	2.57
BBB Foods Competitors	1091	2942	3175	143	2.32

BBB Foods presently has a consensus price target of $33.67, indicating a potential upside of 12.98%. As a group, “Grocery stores” companies have a potential upside of 11.29%. Given BBB Foods’ stronger consensus rating and higher probable upside, equities research analysts plainly believe BBB Foods is more favorable than its peers.

Summary

BBB Foods peers beat BBB Foods on 8 of the 13 factors compared.

BBB Foods Company Profile

BBB Foods Inc., through its subsidiaries, operates a chain of grocery retail stores in Mexico. It offers household cleaning, personal hyenine, cosmetics and beauty, pharmacy, and general merchandise products, as well as jellies and desserts, foods and drinks, pet supplies, coffee, tea, chocolates, breads, dry and frozen foods, snacks and sweets, and toilet papers and napkins. The company also provides branded, private label, and spot products. It serves low-to-middle income households through online channels. BBB Foods Inc. was incorporated in 2004 and is headquartered in Mexico City, Mexico.