BAB (OTCMKTS:BABB – Get Free Report) and John B. Sanfilippo & Son (NASDAQ:JBSS – Get Free Report) are both small-cap consumer staples companies, but which is the better business? We will compare the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, profitability, institutional ownership and valuation.
Analyst Ratings
This is a summary of recent recommendations and price targets for BAB and John B. Sanfilippo & Son, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| BAB | 0 | 0 | 0 | 0 | 0.00 |
| John B. Sanfilippo & Son | 0 | 3 | 1 | 0 | 2.25 |
John B. Sanfilippo & Son has a consensus price target of $109.00, indicating a potential upside of 27.22%. Given John B. Sanfilippo & Son’s stronger consensus rating and higher possible upside, analysts plainly believe John B. Sanfilippo & Son is more favorable than BAB.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| BAB | $3.44 million | 1.75 | $560,000.00 | $0.09 | 9.22 |
| John B. Sanfilippo & Son | $1.11 billion | 0.90 | $58.93 million | $5.70 | 15.03 |
John B. Sanfilippo & Son has higher revenue and earnings than BAB. BAB is trading at a lower price-to-earnings ratio than John B. Sanfilippo & Son, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares BAB and John B. Sanfilippo & Son’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| BAB | 17.49% | 17.16% | 12.27% |
| John B. Sanfilippo & Son | 5.76% | 18.11% | 10.88% |
Institutional and Insider Ownership
70.6% of John B. Sanfilippo & Son shares are owned by institutional investors. 33.7% of BAB shares are owned by company insiders. Comparatively, 30.2% of John B. Sanfilippo & Son shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Dividends
BAB pays an annual dividend of $0.04 per share and has a dividend yield of 4.8%. John B. Sanfilippo & Son pays an annual dividend of $0.90 per share and has a dividend yield of 1.1%. BAB pays out 44.4% of its earnings in the form of a dividend. John B. Sanfilippo & Son pays out 15.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. John B. Sanfilippo & Son has raised its dividend for 8 consecutive years.
Risk & Volatility
BAB has a beta of 0.17, suggesting that its share price is 83% less volatile than the S&P 500. Comparatively, John B. Sanfilippo & Son has a beta of 0.32, suggesting that its share price is 68% less volatile than the S&P 500.
Summary
John B. Sanfilippo & Son beats BAB on 12 of the 17 factors compared between the two stocks.
About BAB
BAB, Inc. franchises and licenses bagel and muffin retail units under the Big Apple Bagels (BAB), My Favorite Muffin (MFM), and SweetDuet (SD) trade names in the United States. It's BAB franchised brand includes daily baked bagels, flavored cream cheeses, premium coffees, gourmet bagel sandwiches, and other related products; and MFM brand comprises various freshly baked muffins and coffees, as well as units operating as My Favorite Muffin Your All Day Bakery Café features specialty bagel sandwiches and related products. The company's SD brand includes frozen yogurt products. BAB, Inc. was founded in 1993 and is based in Deerfield, Illinois.
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.
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