Tootsie Roll Industries (NYSE: TR) and John B. Sanfilippo & Son (NASDAQ:JBSS) are both non-cyclical consumer goods & services companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, earnings, profitability, institutional ownership and dividends.
Insider and Institutional Ownership
22.1% of Tootsie Roll Industries shares are owned by institutional investors. Comparatively, 72.9% of John B. Sanfilippo & Son shares are owned by institutional investors. 41.9% of Tootsie Roll Industries shares are owned by insiders. Comparatively, 22.1% of John B. Sanfilippo & Son shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Tootsie Roll Industries has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500. Comparatively, John B. Sanfilippo & Son has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500.
This table compares Tootsie Roll Industries and John B. Sanfilippo & Son’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Tootsie Roll Industries||12.96%||9.41%||7.23%|
|John B. Sanfilippo & Son||4.34%||16.16%||9.06%|
Earnings & Valuation
This table compares Tootsie Roll Industries and John B. Sanfilippo & Son’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Tootsie Roll Industries||$517.37 million||4.34||$67.51 million||$1.05||34.00|
|John B. Sanfilippo & Son||$846.64 million||0.83||$36.12 million||$3.19||19.56|
Tootsie Roll Industries has higher earnings, but lower revenue than John B. Sanfilippo & Son. John B. Sanfilippo & Son is trading at a lower price-to-earnings ratio than Tootsie Roll Industries, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and price targets for Tootsie Roll Industries and John B. Sanfilippo & Son, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Tootsie Roll Industries||0||0||0||0||N/A|
|John B. Sanfilippo & Son||0||1||0||0||2.00|
John B. Sanfilippo & Son has a consensus price target of $70.00, indicating a potential upside of 12.20%. Given John B. Sanfilippo & Son’s higher possible upside, analysts clearly believe John B. Sanfilippo & Son is more favorable than Tootsie Roll Industries.
Tootsie Roll Industries pays an annual dividend of $0.36 per share and has a dividend yield of 1.0%. John B. Sanfilippo & Son pays an annual dividend of $0.50 per share and has a dividend yield of 0.8%. Tootsie Roll Industries pays out 34.3% of its earnings in the form of a dividend. John B. Sanfilippo & Son pays out 15.7% 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 52 consecutive years.
John B. Sanfilippo & Son beats Tootsie Roll Industries on 9 of the 15 factors compared between the two stocks.
About Tootsie Roll Industries
Tootsie Roll Industries, Inc. and its subsidiaries are engaged in the manufacture and sale of confectionery products. The Company offers a range of candy, chocolate and bubble gum brands. Its products are marketed in a range of packages designed to be suitable for display and sale in different types of retail outlets. The Company sells its products under the brand names TOOTSIE ROLL, TOOTSIE POPS, CHILD’S PLAY, CARAMEL APPLE POPS, CHARMS, BLOW-POP, CHARMS MINI POPS, CELLA’S, DOTS, JUNIOR MINTS, CHARLESTON CHEW, SUGAR DADDY, SUGAR BABIES, ANDES, FLUFFY STUFF, DUBBLE BUBBLE, RAZZLES, CRY BABY, NIK-L-NIP and TUTSI POP (Mexico). As of December 31, 2016, its products were sold through approximately 30 candy and grocery brokers and by the Company itself to customers throughout the United States. Its customers include wholesale distributors of candy and groceries, supermarkets, variety stores, dollar stores, chain grocers, drug chains, discount chains and cooperative grocery associations.
About John B. Sanfilippo & Son
John B. Sanfilippo & Son, Inc. is a processor and distributor of peanuts, pecans, cashews, walnuts, almonds and other nuts. The Company offers nuts under a range of private brands and under the Fisher, Orchard Valley Harvest, Fisher Nut Exactly and Sunshine Country brand names. The Company also markets and distributes a diverse product line of food and snack products, including snack mixes, salad toppings, snacks, snack bites, trail mixes, dried fruit, and chocolate and yogurt coated products under private brands and brand names. The Company’s principal products are raw and processed nuts. The Company’s nut product line includes black walnuts, English walnuts, macadamia nuts, pistachios, pine nuts, Brazil nuts and filberts. The Company’s products are sold through various distribution channels to buyers of nuts, including food retailers, commercial ingredient users, contract packaging customers and international customers.
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