John B. Sanfilippo & Son (NASDAQ:JBSS) versus Mama’s Creations (NASDAQ:MAMA) Critical Comparison

Mama’s Creations (NASDAQ:MAMA) and John B. Sanfilippo & Son (NASDAQ:JBSS) are both small-cap consumer staples companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, valuation, profitability, earnings and institutional ownership.

Profitability

This table compares Mama’s Creations and John B. Sanfilippo & Son’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mama’s Creations	3.08%	16.72%	9.28%
John B. Sanfilippo & Son	6.15%	19.54%	11.71%

Valuation & Earnings

This table compares Mama’s Creations and John B. Sanfilippo & Son”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mama’s Creations	$123.33 million	4.92	$3.71 million	$0.11	135.82
John B. Sanfilippo & Son	$1.11 billion	0.85	$58.93 million	$5.99	13.47

John B. Sanfilippo & Son has higher revenue and earnings than Mama’s Creations. John B. Sanfilippo & Son is trading at a lower price-to-earnings ratio than Mama’s Creations, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Mama’s Creations has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500. Comparatively, John B. Sanfilippo & Son has a beta of 0.36, meaning that its stock price is 64% less volatile than the S&P 500.

Institutional & Insider Ownership

45.2% of Mama’s Creations shares are held by institutional investors. Comparatively, 70.6% of John B. Sanfilippo & Son shares are held by institutional investors. 6.5% of Mama’s Creations shares are held by insiders. Comparatively, 30.2% of John B. Sanfilippo & Son shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings for Mama’s Creations and John B. Sanfilippo & Son, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mama’s Creations	0	2	4	0	2.67
John B. Sanfilippo & Son	0	2	1	0	2.33

Mama’s Creations presently has a consensus price target of $17.60, indicating a potential upside of 17.80%. John B. Sanfilippo & Son has a consensus price target of $109.00, indicating a potential upside of 35.14%. Given John B. Sanfilippo & Son’s higher possible upside, analysts plainly believe John B. Sanfilippo & Son is more favorable than Mama’s Creations.

Summary

John B. Sanfilippo & Son beats Mama’s Creations on 9 of the 14 factors compared between the two stocks.

About Mama’s Creations

Mama’s Creations, Inc. engages in the marketing, manufacturing, and distribution of beef meatballs with sauce, turkey meatballs with sauce, beef meat loaf, sausage and peppers, chicken parmesan, and other similar meats and sauces. Its products include beef meatballs, turkey meatballs, stuffed meatballs, lasagna roll ups, retail ready meals, bulk deli, single-size pasta bowls, and packaged refrigerated products. Its brands include MamaMancini’s, Creative Salads, and The Olive Branch. The company was founded by Daniel Dougherty on July 22, 2009 and is headquartered in East Rutherford, NJ.

About John B. Sanfilippo & Son

John B. Sanfilippo & Son, Inc. engages in the processing and distribution of nuts and nut-related products. It offers peanuts, pecans, cashews, walnuts, almonds, and other nuts under the brands of Fisher, Orchard Valley Harvest, Squirrel Brand, and Southern Style Nuts. The company was founded by Gaspare Sanfilippo and John B. Sanfilippo in 1922 and is headquartered in Elgin, IL.