Head to Head Comparison: BBB Foods (NYSE:TBBB) vs. Ollie’s Bargain Outlet (NASDAQ:OLLI)

Ollie’s Bargain Outlet (NASDAQ:OLLI) and BBB Foods (NYSE:TBBB) are both mid-cap consumer staples companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, earnings, risk, dividends, valuation, analyst recommendations and profitability.

Institutional & Insider Ownership

8.4% of BBB Foods shares are owned by institutional investors. 0.9% of Ollie’s Bargain Outlet shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Ollie’s Bargain Outlet has a beta of 0.4, indicating that its stock price is 60% less volatile than the S&P 500. Comparatively, BBB Foods has a beta of -0.02, indicating that its stock price is 102% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Ollie’s Bargain Outlet and BBB Foods, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ollie’s Bargain Outlet	0	5	9	0	2.64
BBB Foods	0	5	2	0	2.29

Ollie’s Bargain Outlet currently has a consensus price target of $126.7857, suggesting a potential downside of 6.18%. BBB Foods has a consensus price target of $33.1667, suggesting a potential upside of 26.09%. Given BBB Foods’ higher possible upside, analysts clearly believe BBB Foods is more favorable than Ollie’s Bargain Outlet.

Valuation and Earnings

This table compares Ollie’s Bargain Outlet and BBB Foods”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ollie’s Bargain Outlet	$2.27 billion	3.65	$199.76 million	$3.25	41.58
BBB Foods	$3.15 billion	0.95	$18.36 million	$0.22	119.56

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

Profitability

This table compares Ollie’s Bargain Outlet and BBB Foods’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ollie’s Bargain Outlet	8.59%	12.27%	8.05%
BBB Foods	0.85%	13.08%	2.35%

Summary

Ollie’s Bargain Outlet beats BBB Foods on 9 of the 14 factors compared between the two stocks.

About Ollie’s Bargain Outlet

Ollie’s Bargain Outlet Holdings, Inc. is a holding company, which engages in the retail of closeouts, excess inventory, and salvage merchandise. It offers overstocks, package changes, manufacturer refurbished goods, and irregulars. The company’s products include housewares, food, books and stationery, bed and bath, floor coverings, electronics and toys. Ollie’s Bargain Outlet Holdings was founded by Mark Butler, Mort Bernstein, Oliver Rosenberg and Harry Coverman on July 29, 1982, and is headquartered in Harrisburg, PA.

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.