J. M. Smucker (NYSE:SJM) & B&G Foods (NYSE:BGS) Head-To-Head Contrast

B&G Foods (NYSE:BGS) and J. M. Smucker (NYSE:SJM) are both consumer staples companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, risk, earnings, analyst recommendations and profitability.

Dividends

B&G Foods pays an annual dividend of $0.38 per share and has a dividend yield of 12.2%. J. M. Smucker pays an annual dividend of $4.48 per share and has a dividend yield of 3.7%. B&G Foods pays out -42.7% of its earnings in the form of a dividend. J. M. Smucker pays out 209.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. J. M. Smucker has increased its dividend for 27 consecutive years. B&G Foods is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

66.2% of B&G Foods shares are held by institutional investors. Comparatively, 81.7% of J. M. Smucker shares are held by institutional investors. 5.3% of B&G Foods shares are held by company insiders. Comparatively, 2.8% of J. M. Smucker shares 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.

Valuation and Earnings

This table compares B&G Foods and J. M. Smucker”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
B&G Foods	$1.83 billion	0.14	-$43.26 million	($0.89)	-3.51
J. M. Smucker	$9.05 billion	1.43	-$138.70 million	$2.14	56.56

B&G Foods has higher earnings, but lower revenue than J. M. Smucker. B&G Foods 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.

Risk and Volatility

B&G Foods has a beta of 0.48, suggesting that its share price is 52% 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.

Profitability

This table compares B&G Foods and J. M. Smucker’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
B&G Foods	-4.00%	10.74%	1.55%
J. M. Smucker	2.51%	19.85%	6.76%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for B&G Foods and J. M. Smucker, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
B&G Foods	2	2	0	0	1.50
J. M. Smucker	0	7	10	0	2.59

B&G Foods currently has a consensus price target of $4.00, suggesting a potential upside of 28.00%. J. M. Smucker has a consensus price target of $136.25, suggesting a potential upside of 12.58%. Given B&G Foods’ higher probable upside, research analysts clearly believe B&G Foods is more favorable than J. M. Smucker.

Summary

J. M. Smucker beats B&G Foods on 11 of the 17 factors compared between the two stocks.

About B&G Foods

B&G Foods, Inc. is a holding company, which engages in the manufacture, sale, and distribution of shelf-stable frozen food, and household products in the U.S., Canada, and Puerto Rico. It operates through the following segments: Specialty, Meals, Frozen & Vegetables, and Spices & Flavor Solutions. The Specialty segment includes, among others, the Crisco, Clabber Girl, Bear Creek, Polaner, Underwood, B&G, Grandma’s, New York Style, Don Pepino, Sclafani, B&M, Baker’s Joy, Regina, TrueNorth, Static Guard, SugarTwin and Brer Rabbit brands. The Meals segment focuses on the Ortega, Maple Grove Farms, Cream of Wheat, Las Palmas, Victoria, Mama Mary’s, Spring Tree, McCann’s, Carey’s and Vermont Maid brands. The Frozen & Vegetables segment consists of Green Giant and Le Sueur brands. The Spices & Flavor Solutions segment offers Dash, Spice Islands, Weber, Ac’cent, Tone’s, Trappey’s, Durkee and Wright’s brands. Its products include frozen and canned vegetables, hot cereals, fruit spreads, canned meats and beans, bagel chips, spices, seasonings, hot sauces, and wine vinegar. Its brands include Back to Nature, Bear Creek, Cream of Wheat, Green Giant, Mrs. Dash, and Ortega. The company was founded in 1889 and is headquartered in Parsippany, NJ.

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.