Financial Contrast: L’Oreal (OTCMKTS:LRLCY) and BBB Foods (NYSE:TBBB)

BBB Foods (NYSE:TBBB) and L’Oreal (OTCMKTS:LRLCY) are both consumer staples companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, analyst recommendations, institutional ownership, dividends, valuation and profitability.

Insider & Institutional Ownership

8.4% of BBB Foods shares are held by institutional investors. Comparatively, 0.4% of L’Oreal shares are held by institutional investors. 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.

Earnings & Valuation

This table compares BBB Foods and L’Oreal”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BBB Foods	$3.15 billion	0.95	$18.36 million	($0.08)	-326.83
L’Oreal	$47.06 billion	5.34	$6.93 billion	N/A	N/A

L’Oreal has higher revenue and earnings than BBB Foods.

Volatility & Risk

BBB Foods has a beta of -0.01, indicating that its share price is 101% less volatile than the S&P 500. Comparatively, L’Oreal has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500.

Profitability

This table compares BBB Foods and L’Oreal’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BBB Foods	-0.19%	-3.07%	-0.54%
L’Oreal	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current recommendations for BBB Foods and L’Oreal, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BBB Foods	0	3	2	0	2.40
L’Oreal	2	4	1	1	2.13

BBB Foods presently has a consensus price target of $33.60, indicating a potential upside of 28.51%. Given BBB Foods’ stronger consensus rating and higher probable upside, analysts clearly believe BBB Foods is more favorable than L’Oreal.

Summary

L’Oreal beats BBB Foods on 8 of the 12 factors compared between the two stocks.

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.

About L’Oreal

L'Oréal S.A., through its subsidiaries, manufactures and sells cosmetic products for women and men worldwide. The company operates through four divisions: Consumer Products, L'oréal Luxe, Professional Products, and Dermatological Beauty. It offers skincare, make-up, hair colourants, haircare, perfumes, and hygiene products. The company provides its products under the L'Oréal Paris, Garnier, Maybelline New York, NYX Professional Makeup, Stylenanda, Essie, Dark & Lovely, Mixa, Magic Mask, Niley, Lancôme, Yves Saint Laurent, Armani, Kiehl's Since 1851, Helena Rubinstein, Biotherm, Shu Uemura, IT Cosmetics, Ralph Lauren Fragrance, Urban Decay, Mugler, Valentino, Viktor&Rolf, Azzaro, Prada, Cacharel, Maison Margela Fragrance, Diesel, Yue Sai, Atelier Colonge, Carita, Takami, Aesop, L'Oréal Professionnel Paris, Kérastase, Redken, Matrix, Pureology, Pulp Riot, La Roche-Posay, Vichy, CeraVe, SkinCeuticals, and Skinbetter Science brands. It sells its products through distribution channels, such as hair salons, local stores, e-commerce, travel retail, mass market retail, department store perfumeries, pharmacies, drug stores, medi-spas, and free-standing stores. L'Oréal S.A. was founded in 1909 and is headquartered in Clichy, France.