John B. Sanfilippo & Son (NASDAQ: JBSS) and Tootsie Roll Industries (NYSE:TR) are both non-cyclical consumer goods & services companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.
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 an annual dividend of $0.36 per share and has a dividend yield of 1.0%. John B. Sanfilippo & Son pays out 15.7% of its earnings in the form of a dividend. Tootsie Roll Industries pays out 34.3% 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 increased its dividend for 52 consecutive years.
This table compares John B. Sanfilippo & Son and Tootsie Roll Industries’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|John B. Sanfilippo & Son||4.34%||16.16%||9.06%|
|Tootsie Roll Industries||12.96%||9.41%||7.23%|
Valuation & Earnings
This table compares John B. Sanfilippo & Son and Tootsie Roll Industries’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|John B. Sanfilippo & Son||$846.64 million||0.83||$36.12 million||$3.19||19.56|
|Tootsie Roll Industries||$517.37 million||4.34||$67.51 million||$1.05||34.00|
Tootsie Roll Industries has lower revenue, but higher earnings 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 recommmendations for John B. Sanfilippo & Son and Tootsie Roll Industries, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|John B. Sanfilippo & Son||0||1||0||0||2.00|
|Tootsie Roll Industries||0||0||0||0||N/A|
John B. Sanfilippo & Son presently has a consensus price target of $70.00, indicating a potential upside of 12.20%. Given John B. Sanfilippo & Son’s higher probable upside, equities analysts clearly believe John B. Sanfilippo & Son is more favorable than Tootsie Roll Industries.
Risk and Volatility
John B. Sanfilippo & Son has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500. Comparatively, Tootsie Roll Industries has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500.
Insider & Institutional Ownership
72.9% of John B. Sanfilippo & Son shares are owned by institutional investors. Comparatively, 22.1% of Tootsie Roll Industries shares are owned by institutional investors. 22.1% of John B. Sanfilippo & Son shares are owned by insiders. Comparatively, 41.9% of Tootsie Roll Industries shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
John B. Sanfilippo & Son beats Tootsie Roll Industries on 9 of the 15 factors compared between the two stocks.
John B. Sanfilippo & Son Company Profile
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.
Tootsie Roll Industries Company Profile
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.
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