Comparing WD-40 (NASDAQ:WDFC) & BBB Foods (NYSE:TBBB)

WD-40 (NASDAQ:WDFC) and BBB Foods (NYSE:TBBB) are both mid-cap consumer staples companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, earnings, valuation, profitability, dividends, institutional ownership and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings and price targets for WD-40 and BBB Foods, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WD-40	0	1	1	0	2.50
BBB Foods	2	2	4	0	2.25

WD-40 currently has a consensus target price of $300.00, suggesting a potential upside of 45.50%. BBB Foods has a consensus target price of $39.50, suggesting a potential upside of 8.95%. Given WD-40’s stronger consensus rating and higher probable upside, equities research analysts plainly believe WD-40 is more favorable than BBB Foods.

Valuation and Earnings

This table compares WD-40 and BBB Foods”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WD-40	$619.98 million	4.49	$90.99 million	$6.57	31.38
BBB Foods	$4.08 billion	1.02	-$148.23 million	($1.32)	-27.47

WD-40 has higher earnings, but lower revenue than BBB Foods. BBB Foods is trading at a lower price-to-earnings ratio than WD-40, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

WD-40 has a beta of 0.25, suggesting that its share price is 75% less volatile than the S&P 500. Comparatively, BBB Foods has a beta of 0.01, suggesting that its share price is 99% less volatile than the S&P 500.

Profitability

This table compares WD-40 and BBB Foods’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
WD-40	14.42%	30.10%	16.79%
BBB Foods	-3.72%	-70.80%	-11.06%

Institutional and Insider Ownership

91.5% of WD-40 shares are owned by institutional investors. Comparatively, 8.4% of BBB Foods shares are owned by institutional investors. 0.8% of WD-40 shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

WD-40 beats BBB Foods on 12 of the 14 factors compared between the two stocks.

About WD-40

WD-40 Company develops and sells maintenance products, and homecare and cleaning products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company provides multi-purpose maintenance products that include aerosol sprays, non-aerosol trigger sprays, precision pens, and in liquid-bulk form products under the WD-40 Multi-Use brand name; specialty maintenance products, such as penetrants, degreasers, corrosion inhibitors, greases, lubricants, and rust removers under the WD-40 Specialist brand; and bike-specific products. It also offers multi-purpose and specialty drip oils, and spray lubricant products, as well as other specialty maintenance products under the 3-IN-ONE brand name; and professional spray maintenance products and lubricants for the bike maintenance market under the GT85 brand name. In addition, the company provides automatic toilet bowl cleaners under the 2000 Flushes brand name; aerosol and liquid trigger carpet stain and odor eliminators under the Spot Shot brand; room and rug deodorizers under the Carpet Fresh brand name; carpet and household cleaners, and rug and room deodorizers under the 1001 brand; heavy-duty hand cleaner products under the Lava brand name in the United States, as well as under the Solvol brand name in Australia; and automatic toilet bowl cleaners under the X-14 brand name. It sells its products primarily through warehouse club stores, hardware stores, automotive parts outlets, industrial distributors and suppliers, mass retail and home center stores, value retailers, grocery stores, online retailers, farm supply, sport retailers, and independent bike dealers. WD-40 Company was founded in 1953 and is headquartered in San Diego, California.

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.