Head-To-Head Survey: Grocery Outlet (NASDAQ:GO) vs. BBB Foods (NYSE:TBBB)

BBB Foods (NYSE:TBBB) and Grocery Outlet (NASDAQ:GO) are both consumer staples companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.

Institutional and Insider Ownership

8.4% of BBB Foods shares are owned by institutional investors. Comparatively, 99.9% of Grocery Outlet shares are owned by institutional investors. 4.5% of Grocery Outlet shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for BBB Foods and Grocery Outlet, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BBB Foods	2	2	4	0	2.25
Grocery Outlet	2	11	0	0	1.85

BBB Foods presently has a consensus price target of $39.50, suggesting a potential upside of 8.59%. Grocery Outlet has a consensus price target of $10.68, suggesting a potential upside of 53.14%. Given Grocery Outlet’s higher probable upside, analysts plainly believe Grocery Outlet is more favorable than BBB Foods.

Volatility & Risk

BBB Foods has a beta of 0.01, indicating that its share price is 99% less volatile than the S&P 500. Comparatively, Grocery Outlet has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BBB Foods	-3.72%	-70.80%	-11.06%
Grocery Outlet	-4.80%	5.93%	2.07%

Earnings & Valuation

This table compares BBB Foods and Grocery Outlet”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BBB Foods	$4.08 billion	1.02	-$148.23 million	($1.32)	-27.56
Grocery Outlet	$4.69 billion	0.15	-$224.91 million	($2.29)	-3.05

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

Summary

Grocery Outlet beats BBB Foods on 8 of the 14 factors compared between the two stocks.

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.

About Grocery Outlet

Grocery Outlet Holding Corp. operates as a retailer of consumables and fresh products sold through independently operated stores in the United States. Its stores offer products in various categories, such as dairy and deli, produce, floral, fresh meat, seafood products, grocery, general merchandise, health and beauty care, frozen food, beer and wine, and ethnic products. The company was founded in 1946 and is headquartered in Emeryville, California.