Financial Review: J. M. Smucker (NYSE:SJM) and BellRing Brands (NYSE:BRBR)

BellRing Brands (NYSE:BRBR) and J. M. Smucker (NYSE:SJM) are both consumer staples companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.

Earnings & Valuation

This table compares BellRing Brands and J. M. Smucker”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BellRing Brands	$2.32 billion	0.53	$216.20 million	$1.42	7.38
J. M. Smucker	$9.05 billion	1.52	-$138.70 million	$2.14	60.17

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

Analyst Ratings

This is a breakdown of current ratings and price targets for BellRing Brands and J. M. Smucker, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BellRing Brands	1	8	9	0	2.44
J. M. Smucker	0	8	10	0	2.56

BellRing Brands currently has a consensus target price of $19.82, indicating a potential upside of 89.14%. J. M. Smucker has a consensus target price of $136.25, indicating a potential upside of 5.81%. Given BellRing Brands’ higher probable upside, research analysts plainly believe BellRing Brands is more favorable than J. M. Smucker.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BellRing Brands	7.28%	-33.04%	15.63%
J. M. Smucker	2.51%	19.85%	6.76%

Insider & Institutional Ownership

95.0% of BellRing Brands shares are owned by institutional investors. Comparatively, 81.7% of J. M. Smucker shares are owned by institutional investors. 1.5% of BellRing Brands shares are owned by insiders. Comparatively, 2.8% of J. M. Smucker shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

BellRing Brands has a beta of 0.43, suggesting that its share price is 57% less volatile than the S&P 500. Comparatively, J. M. Smucker has a beta of 0.27, suggesting that its share price is 73% less volatile than the S&P 500.

Summary

J. M. Smucker beats BellRing Brands on 8 of the 14 factors compared between the two stocks.

About BellRing Brands

BellRing Brands, Inc., together with its subsidiaries, provides various nutrition products in the United States. The company offers ready-to-drink (RTD) protein shakes, other RTD beverages, powders, nutrition bars, and other products primarily under the Premier Protein and Dymatize brands. It distributes its products through club, food, drug, mass, eCommerce, specialty, and convenience channels. BellRing Brands, Inc. was incorporated in 2019 and is headquartered in Saint Louis, Missouri.

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.