Financial Survey: Cresud S.A.C.I.F. y A. (NASDAQ:CRESY) & J. M. Smucker (NYSE:SJM)

J. M. Smucker (NYSE:SJM) and Cresud S.A.C.I.F. y A. (NASDAQ:CRESY) are both consumer staples companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, institutional ownership, valuation and risk.

Volatility & Risk

J. M. Smucker has a beta of 0.27, meaning that its stock price is 73% less volatile than the S&P 500. Comparatively, Cresud S.A.C.I.F. y A. has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500.

Earnings and Valuation

This table compares J. M. Smucker and Cresud S.A.C.I.F. y A.”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
J. M. Smucker	$9.05 billion	1.47	-$138.70 million	$2.14	58.26
Cresud S.A.C.I.F. y A.	$1,040.87 billion	0.00	$96.15 million	$2.22	5.44

Cresud S.A.C.I.F. y A. has higher revenue and earnings than J. M. Smucker. Cresud S.A.C.I.F. y A. 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.

Dividends

J. M. Smucker pays an annual dividend of $4.48 per share and has a dividend yield of 3.6%. Cresud S.A.C.I.F. y A. pays an annual dividend of $0.60 per share and has a dividend yield of 5.0%. 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. Cresud S.A.C.I.F. y A. pays out 27.0% of its earnings in the form of a dividend. J. M. Smucker has increased its dividend for 27 consecutive years. Cresud S.A.C.I.F. y A. is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares J. M. Smucker and Cresud S.A.C.I.F. y A.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
J. M. Smucker	2.51%	19.85%	6.76%
Cresud S.A.C.I.F. y A.	17.44%	7.21%	3.09%

Institutional and Insider Ownership

81.7% of J. M. Smucker shares are owned by institutional investors. Comparatively, 12.9% of Cresud S.A.C.I.F. y A. shares are owned by institutional investors. 2.8% of J. M. Smucker shares are owned by company insiders. Comparatively, 36.2% of Cresud S.A.C.I.F. y A. shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings for J. M. Smucker and Cresud S.A.C.I.F. y A., as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
J. M. Smucker	0	8	10	0	2.56
Cresud S.A.C.I.F. y A.	0	1	0	0	2.00

J. M. Smucker presently has a consensus target price of $136.25, indicating a potential upside of 9.29%. Given J. M. Smucker’s stronger consensus rating and higher probable upside, equities research analysts plainly believe J. M. Smucker is more favorable than Cresud S.A.C.I.F. y A..

Summary

J. M. Smucker beats Cresud S.A.C.I.F. y A. on 9 of the 17 factors compared between the two stocks.

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.

About Cresud S.A.C.I.F. y A.

Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria, an agricultural company, engages in the production of agricultural commodities in Brazil and other Latin American countries. The company operates through Agricultural Business, and Business Urban Properties and Investments segments. It is also involved in the management, development, and ownership of shopping malls, office buildings, and hotels; sale of grain derivatives, such as flour and oil; production and sale of crops, such as soybean, sugarcane, wheat, corn, oilseed, and sunflower, as well as sorghum and peanuts; and breeding, purchasing, and/or fattening of cattle for sale to slaughterhouses and supermarkets. In addition, it leases its farms to third parties for agriculture, cattle breeding, and seed production; and offers agricultural services. The company was incorporated in 1936 and is headquartered in Buenos Aires, Argentina.