Reviewing Mondelez International (NASDAQ:MDLZ) & JBS (OTCMKTS:JBSAY)

Mondelez International (NASDAQ:MDLZ) and JBS (OTCMKTS:JBSAY) are both large-cap consumer staples companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, risk, dividends, valuation and earnings.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Mondelez International and JBS, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mondelez International	0	10	17	0	2.63
JBS	0	0	3	0	3.00

Mondelez International currently has a consensus target price of $68.86, indicating a potential upside of 7.62%. JBS has a consensus target price of $18.33, indicating a potential upside of 26.96%. Given JBS’s stronger consensus rating and higher probable upside, analysts plainly believe JBS is more favorable than Mondelez International.

Dividends

Mondelez International pays an annual dividend of $2.08 per share and has a dividend yield of 3.3%. JBS pays an annual dividend of $1.05 per share and has a dividend yield of 7.3%. Mondelez International pays out 76.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. JBS pays out 57.1% of its earnings in the form of a dividend. Mondelez International has increased its dividend for 13 consecutive years. JBS is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

78.3% of Mondelez International shares are owned by institutional investors. Comparatively, 0.1% of JBS shares are owned by institutional investors. 0.5% of Mondelez International shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Mondelez International and JBS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mondelez International	8.86%	14.07%	5.16%
JBS	2.43%	24.07%	5.01%

Volatility and Risk

Mondelez International has a beta of 0.38, indicating that its stock price is 62% less volatile than the S&P 500. Comparatively, JBS has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500.

Valuation & Earnings

This table compares Mondelez International and JBS”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mondelez International	$38.54 billion	2.12	$2.45 billion	$2.72	23.53
JBS	$77.18 billion	0.21	$1.77 billion	$1.84	7.85

Mondelez International has higher earnings, but lower revenue than JBS. JBS is trading at a lower price-to-earnings ratio than Mondelez International, indicating that it is currently the more affordable of the two stocks.

Summary

Mondelez International beats JBS on 10 of the 17 factors compared between the two stocks.

About Mondelez International

Mondelez International, Inc., through its subsidiaries, manufactures, markets, and sells snack food and beverage products in the Latin America, North America, Asia, the Middle East, Africa, and Europe. It provides biscuits and baked snacks, including cookies, crackers, salted snacks, snack bars, and cakes and pastries; chocolates; and gums and candies, as well as various cheese and grocery, and powdered beverage products. The company's brand portfolio includes Oreo, Ritz, LU, CLIF Bar, and Tate's Bake Shop biscuits and baked snacks, as well as Cadbury Dairy Milk, Milka, and Toblerone chocolate. It serves supermarket chains, wholesalers, supercenters, club stores, mass merchandisers, distributors, convenience stores, gasoline stations, drug stores, value stores, and other retail food outlets through direct store delivery, company-owned and satellite warehouses, distribution centers, third party distributors, and other facilities, as well as through independent sales offices and agents. The company also sells products directly to businesses and consumers through e-retail platforms, retailer digital platforms, as well as through its direct-to-consumer websites and social media platforms. Mondelez International, Inc. was formerly known as Kraft Foods Inc. and changed its name to Mondelez International, Inc. in October 2012. The company was incorporated in 2000 and is headquartered in Chicago, Illinois.

About JBS

JBS S.A., together with its subsidiaries, engages in the processing of animal protein worldwide. The company trades in beef, pork, chicken, poultry, fish, and lamb products; cooked frozen meat; plant based products; and other food products. It produces and commercializes leather, steel cans, plastic resin, personal care and cleaning products, and collagen, as well as wet blue leather, semi-finished, and finished leather products. In addition, it is involved in transportation, cold storage, industrial waste management solutions, recycling, and produces and commercializes electric power. Further, the company engages in the production and commercialization of raw ham and cooked ham; purchases and sells soybeans, tallow, palm oil, and caustic soda; and operates distribution centers and harbors. Additionally, it produces beef jerky; offers cattle fattening and warehousing services; operates logistics; and trades in by products from processing. The company was formerly known as Friboi Ltda. JBS S.A. was founded in 1953 and is headquartered in São Paulo, Brazil.