Reviewing Chefs’ Warehouse (NASDAQ:CHEF) & BBB Foods (NYSE:TBBB)

BBB Foods (NYSE:TBBB) and Chefs’ Warehouse (NASDAQ:CHEF) are both mid-cap consumer staples companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, institutional ownership, valuation and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BBB Foods	-3.68%	-72.47%	-10.71%
Chefs’ Warehouse	2.09%	16.95%	5.19%

Analyst Ratings

This is a breakdown of recent ratings for BBB Foods and Chefs’ Warehouse, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BBB Foods	1	2	6	1	2.70
Chefs’ Warehouse	0	1	5	1	3.00

BBB Foods presently has a consensus price target of $50.50, suggesting a potential upside of 0.11%. Chefs’ Warehouse has a consensus price target of $115.67, suggesting a potential upside of 4.72%. Given Chefs’ Warehouse’s stronger consensus rating and higher possible upside, analysts clearly believe Chefs’ Warehouse is more favorable than BBB Foods.

Earnings & Valuation

This table compares BBB Foods and Chefs’ Warehouse”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BBB Foods	$4.08 billion	1.47	-$148.23 million	($1.61)	-31.33
Chefs’ Warehouse	$4.15 billion	1.09	$72.36 million	$2.10	52.60

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

Insider & Institutional Ownership

8.4% of BBB Foods shares are held by institutional investors. Comparatively, 91.5% of Chefs’ Warehouse shares are held by institutional investors. 11.1% of Chefs’ Warehouse shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

BBB Foods has a beta of 0.05, meaning that its stock price is 95% less volatile than the S&P 500. Comparatively, Chefs’ Warehouse has a beta of 1.38, meaning that its stock price is 38% more volatile than the S&P 500.

Summary

Chefs’ Warehouse beats BBB Foods on 12 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 Chefs’ Warehouse

The Chefs’ Warehouse, Inc., together with its subsidiaries, distributes specialty food and center-of-the-plate products in the United States, the Middle East, and Canada. The company’s product portfolio includes specialty food products, such as artisan charcuterie, specialty cheeses, unique oils and vinegars, truffles, caviar, chocolate, and pastry products; and center-of-the-plate products consisting of custom cut beef, seafood, and hormone-free poultry, as well as broadline food products comprising cooking oils, butter, eggs, milk, and flour. The company serves menu-driven independent restaurants, fine dining establishments, country clubs, hotels, caterers, culinary schools, bakeries, patisseries, chocolatiers, cruise lines, casinos, and specialty food stores. It markets its center-of-the-plate products directly to consumers through a mail and e-commerce platform. The Chefs’ Warehouse, Inc. was founded in 1985 and is headquartered in Ridgefield, Connecticut.