Financial Analysis: BBB Foods (TBBB) & The Competition

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

Insider & 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. 24.2% of shares of all “Grocery stores” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
BBB Foods	$61.89 billion	-$17.30 million	131.05
BBB Foods Competitors	$38.06 billion	$567.26 million	11.07

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 and Risk

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

Analyst Ratings

This is a breakdown of current ratings for BBB Foods and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BBB Foods	0	3	3	0	2.50
BBB Foods Competitors	1092	2947	3175	144	2.32

BBB Foods presently has a consensus target price of $34.20, indicating a potential upside of 18.63%. As a group, “Grocery stores” companies have a potential upside of 6.59%. Given BBB Foods’ stronger consensus rating and higher probable upside, equities research analysts clearly believe BBB Foods is more favorable than its peers.

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%

Summary

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

About BBB Foods

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.