Head-To-Head Contrast: J. M. Smucker (NYSE:SJM) vs. B&G Foods (NYSE:BGS)

B&G Foods (NYSE:BGS) and J. M. Smucker (NYSE:SJM) are both consumer staples companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, earnings, profitability, institutional ownership and analyst recommendations.

Risk and Volatility

B&G Foods has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500. Comparatively, J. M. Smucker has a beta of 0.28, meaning that its share price is 72% less volatile than the S&P 500.

Dividends

B&G Foods pays an annual dividend of $0.38 per share and has a dividend yield of 13.0%. J. M. Smucker pays an annual dividend of $4.48 per share and has a dividend yield of 3.9%. B&G Foods pays out -42.7% of its earnings in the form of a dividend. J. M. Smucker pays out 209.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. J. M. Smucker has increased its dividend for 27 consecutive years. B&G Foods is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares B&G Foods and J. M. Smucker’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
B&G Foods	-4.00%	10.74%	1.55%
J. M. Smucker	2.51%	19.85%	6.76%

Institutional and Insider Ownership

66.2% of B&G Foods shares are owned by institutional investors. Comparatively, 81.7% of J. M. Smucker shares are owned by institutional investors. 5.3% of B&G Foods shares are owned by company insiders. Comparatively, 2.8% of J. M. Smucker shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares B&G Foods and J. M. Smucker”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
B&G Foods	$1.83 billion	0.13	-$43.26 million	($0.89)	-3.29
J. M. Smucker	$9.05 billion	1.37	-$138.70 million	$2.14	54.16

B&G Foods has higher earnings, but lower revenue than J. M. Smucker. B&G Foods is trading at a lower price-to-earnings ratio than J. M. Smucker, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings for B&G Foods and J. M. Smucker, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
B&G Foods	2	2	0	0	1.50
J. M. Smucker	0	7	10	0	2.59

B&G Foods presently has a consensus target price of $4.00, suggesting a potential upside of 36.75%. J. M. Smucker has a consensus target price of $136.25, suggesting a potential upside of 17.55%. Given B&G Foods’ higher possible upside, equities research analysts plainly believe B&G Foods is more favorable than J. M. Smucker.

Summary

J. M. Smucker beats B&G Foods on 11 of the 17 factors compared between the two stocks.

About B&G Foods

B&G Foods, Inc. is a holding company, which engages in the manufacture, sale, and distribution of shelf-stable frozen food, and household products in the U.S., Canada, and Puerto Rico. It operates through the following segments: Specialty, Meals, Frozen & Vegetables, and Spices & Flavor Solutions. The Specialty segment includes, among others, the Crisco, Clabber Girl, Bear Creek, Polaner, Underwood, B&G, Grandma’s, New York Style, Don Pepino, Sclafani, B&M, Baker’s Joy, Regina, TrueNorth, Static Guard, SugarTwin and Brer Rabbit brands. The Meals segment focuses on the Ortega, Maple Grove Farms, Cream of Wheat, Las Palmas, Victoria, Mama Mary’s, Spring Tree, McCann’s, Carey’s and Vermont Maid brands. The Frozen & Vegetables segment consists of Green Giant and Le Sueur brands. The Spices & Flavor Solutions segment offers Dash, Spice Islands, Weber, Ac’cent, Tone’s, Trappey’s, Durkee and Wright’s brands. Its products include frozen and canned vegetables, hot cereals, fruit spreads, canned meats and beans, bagel chips, spices, seasonings, hot sauces, and wine vinegar. Its brands include Back to Nature, Bear Creek, Cream of Wheat, Green Giant, Mrs. Dash, and Ortega. The company was founded in 1889 and is headquartered in Parsippany, NJ.

About J. M. Smucker

The J. M. Smucker Company manufactures and markets branded food and beverage products worldwide. It operates in three segments: U.S. Retail Pet Foods, U.S. Retail Coffee, and U.S. Retail Consumer Foods. The company offers mainstream roast, ground, single serve, and premium coffee; peanut butter and specialty spreads; fruit spreads, toppings, and syrups; jelly products; nut mix products; shortening and oils; frozen sandwiches and snacks; pet food and pet snacks; and foodservice hot beverage, foodservice portion control, and flour products, as well as dog and cat food, frozen handheld products, juices and beverages, and baking mixes and ingredients. It provides its products under the Meow Mix, Milk-Bone, Pup-Peroni, Canine Carry Outs, Folgers, Café Bustelo, Dunkin', Folgers, Café Bustelo, 1850, Jif, Smucker's, Smucker's Uncrustables, Robin Hood, and Five Roses. The company sells its products through direct sales and brokers to food retailers, club stores, discount and dollar stores, online retailers, pet specialty stores, natural foods stores and distributors, drug stores, military commissaries, and mass merchandisers. Smucker Company was founded in 1897 and is headquartered in Orrville, Ohio.