BBB Foods (NYSE:TBBB) vs. Church & Dwight (NYSE:CHD) Critical Contrast

Church & Dwight (NYSE:CHD) and BBB Foods (NYSE:TBBB) are both consumer staples companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, earnings, risk and valuation.

Profitability

This table compares Church & Dwight and BBB Foods’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Church & Dwight	11.88%	20.05%	9.61%
BBB Foods	-2.61%	-44.56%	-7.47%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Church & Dwight and BBB Foods, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Church & Dwight	1	8	9	0	2.44
BBB Foods	1	4	3	0	2.25

Church & Dwight presently has a consensus price target of $101.88, suggesting a potential downside of 1.61%. BBB Foods has a consensus price target of $39.00, suggesting a potential upside of 5.38%. Given BBB Foods’ higher possible upside, analysts plainly believe BBB Foods is more favorable than Church & Dwight.

Institutional & Insider Ownership

86.6% of Church & Dwight shares are held by institutional investors. Comparatively, 8.4% of BBB Foods shares are held by institutional investors. 2.0% of Church & Dwight shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Church & Dwight and BBB Foods”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Church & Dwight	$6.20 billion	3.95	$736.80 million	$3.02	34.29
BBB Foods	$3.15 billion	1.34	$18.36 million	($0.84)	-44.06

Church & Dwight has higher revenue and earnings than BBB Foods. BBB Foods is trading at a lower price-to-earnings ratio than Church & Dwight, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Church & Dwight has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500. Comparatively, BBB Foods has a beta of -0.14, meaning that its share price is 114% less volatile than the S&P 500.

Summary

Church & Dwight beats BBB Foods on 13 of the 14 factors compared between the two stocks.

About Church & Dwight

Church & Dwight Co., Inc. engages in the development, manufacture, and marketing of household, personal care, and specialty products. It operates through the following segments: Consumer Domestic, Consumer International, Specialty Products Division (SPD), and Corporate. The Consumer Domestic segment offers household products, such as laundry detergents, fabric softener sheets, cat litter, household cleaning products, and personal care products including antiperspirants, oral care products, depilatories, reproductive health products, oral analgesics, nasal saline moisturizers, and dietary supplements. The Consumer International segment is involved in the personal care, household and over-the-counter products in international subsidiary markets, including Australia, Canada, France, Germany, Japan, Mexico, China, and the United Kingdom. The SPD segment consists of sales to businesses and participates in three product areas namely, animal nutrition, specialty chemicals, and commercial and professional. The Corporate segment includes equity in earnings of affiliates. The company was founded by Dwight John and Austin Church in 1846 and is headquartered in Ewing, NJ.

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.