Analyzing Newell Brands (NASDAQ:NWL) and BBB Foods (NYSE:TBBB)

Newell Brands (NASDAQ:NWL) and BBB Foods (NYSE:TBBB) are both consumer staples companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, valuation, risk, earnings, dividends, analyst recommendations and institutional ownership.

Risk and Volatility

Newell Brands has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500. Comparatively, BBB Foods has a beta of -0.14, suggesting that its stock price is 114% less volatile than the S&P 500.

Profitability

This table compares Newell Brands and BBB Foods’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Newell Brands	-3.96%	9.17%	2.14%
BBB Foods	-2.61%	-44.56%	-7.47%

Insider & Institutional Ownership

92.5% of Newell Brands shares are owned by institutional investors. Comparatively, 8.4% of BBB Foods shares are owned by institutional investors. 0.7% of Newell Brands shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Newell Brands and BBB Foods, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Newell Brands	1	5	4	0	2.30
BBB Foods	1	4	3	0	2.25

Newell Brands currently has a consensus target price of $6.11, indicating a potential upside of 30.02%. BBB Foods has a consensus target price of $37.00, indicating a potential downside of 1.80%. Given Newell Brands’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Newell Brands is more favorable than BBB Foods.

Earnings & Valuation

This table compares Newell Brands and BBB Foods”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Newell Brands	$7.20 billion	0.27	-$285.00 million	($0.68)	-6.91
BBB Foods	$3.15 billion	1.37	$18.36 million	($0.84)	-44.85

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

Summary

Newell Brands beats BBB Foods on 11 of the 14 factors compared between the two stocks.

About Newell Brands

Newell Brands Inc. engages in the design, manufacture, sourcing, and distribution of consumer and commercial products worldwide. The company operates in three segments: Home and Commercial Solutions, Learning and Development, and Outdoor and Recreation. The Commercial Solutions segment provides commercial cleaning and maintenance solution products under the Rubbermaid, Rubbermaid Commercial Products, Mapa, and Spontex brands; closet and garage organization products; hygiene systems and material handling solutions; household products, such as kitchen appliances under the Crockpot, Mr. Coffee, Oster, and Sunbeam brands; small appliances under the Breville brand name in Europe; food and home storage products under the FoodSaver, Rubbermaid, Ball, and Sistema brands; fresh preserving products; vacuum sealing products; and gourmet cookware, bakeware, and cutlery under the Calphalon brand; and home fragrance products under the WoodWick and Yankee Candle brands. The Learning and Development segment offers writing instruments, including markers and highlighters, pens, and pencils; art products; activity-based products; labeling solutions; and baby gear and infant care products under the Dymo, Elmer's, EXPO, Graco, NUK, Paper Mate, Parker, and Sharpie brands. The Outdoor and Recreation segment provides outdoor and outdoor-related products, inlcuding technical apparel and on-the-go beverageware under the Campingaz, Coleman, Contigo, and Marmot brands. It serves warehouse clubs, department and drug/grocery stores, mass merchants, home centers, commercial products distributors, specialty retailers, office superstores and supply stores, contract stationers, e-commerce retailers, and sporting goods, as well as direct to consumers online, select contract customers, and other professional customers. Newell Brands Inc. was founded in 1903 and is based in Atlanta, Georgia.

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.