Kraft Heinz (NASDAQ:KHC – Get Free Report) and John B. Sanfilippo & Son (NASDAQ:JBSS – Get Free Report) are both consumer staples companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, profitability, institutional ownership, dividends and risk.
Volatility & Risk
Kraft Heinz has a beta of 0.09, indicating that its share price is 91% less volatile than the S&P 500. Comparatively, John B. Sanfilippo & Son has a beta of 0.37, indicating that its share price is 63% less volatile than the S&P 500.
Valuation & Earnings
This table compares Kraft Heinz and John B. Sanfilippo & Son”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Kraft Heinz | $25.85 billion | 1.13 | $2.74 billion | ($3.73) | -6.59 |
| John B. Sanfilippo & Son | $1.11 billion | 0.76 | $58.93 million | $5.62 | 12.80 |
Kraft Heinz has higher revenue and earnings than John B. Sanfilippo & Son. Kraft Heinz is trading at a lower price-to-earnings ratio than John B. Sanfilippo & Son, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current recommendations and price targets for Kraft Heinz and John B. Sanfilippo & Son, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Kraft Heinz | 4 | 16 | 0 | 1 | 1.90 |
| John B. Sanfilippo & Son | 1 | 0 | 1 | 1 | 2.67 |
Kraft Heinz presently has a consensus price target of $26.58, indicating a potential upside of 8.09%. John B. Sanfilippo & Son has a consensus price target of $109.00, indicating a potential upside of 51.54%. Given John B. Sanfilippo & Son’s stronger consensus rating and higher probable upside, analysts clearly believe John B. Sanfilippo & Son is more favorable than Kraft Heinz.
Profitability
This table compares Kraft Heinz and John B. Sanfilippo & Son’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Kraft Heinz | -17.35% | 7.26% | 3.86% |
| John B. Sanfilippo & Son | 5.84% | 18.92% | 11.32% |
Dividends
Kraft Heinz pays an annual dividend of $1.60 per share and has a dividend yield of 6.5%. John B. Sanfilippo & Son pays an annual dividend of $0.90 per share and has a dividend yield of 1.3%. Kraft Heinz pays out -42.9% of its earnings in the form of a dividend. John B. Sanfilippo & Son pays out 16.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. John B. Sanfilippo & Son has increased its dividend for 8 consecutive years. Kraft Heinz is clearly the better dividend stock, given its higher yield and lower payout ratio.
Institutional and Insider Ownership
78.2% of Kraft Heinz shares are held by institutional investors. Comparatively, 70.6% of John B. Sanfilippo & Son shares are held by institutional investors. 0.4% of Kraft Heinz shares are held by insiders. Comparatively, 30.2% of John B. Sanfilippo & Son shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Summary
John B. Sanfilippo & Son beats Kraft Heinz on 11 of the 17 factors compared between the two stocks.
About Kraft Heinz
The Kraft Heinz Company, together with its subsidiaries, manufactures and markets food and beverage products in North America and internationally. Its products include condiments and sauces, cheese and dairy products, meals, meats, refreshment beverages, coffee, and other grocery products under the Kraft, Oscar Mayer, Heinz, Philadelphia, Lunchables, Velveeta, Ore-Ida, Maxwell House, Kool-Aid, Jell-O, Heinz, ABC, Master, Quero, Kraft, Golden Circle, Wattie's, Pudliszki, and Plasmon brands. It sells its products through its own sales organizations, as well as through independent brokers, agents, and distributors to chain, wholesale, cooperative, and independent grocery accounts; convenience, value, and club stores; pharmacies and drug stores; mass merchants; foodservice distributors; institutions, including hotels, restaurants, bakeries, hospitals, health care facilities, and government agencies; and online through various e-commerce platforms and retailers. The company was formerly known as H.J. Heinz Holding Corporation and changed its name to The Kraft Heinz Company in July 2015. The Kraft Heinz Company was founded in 1869 and is based in Pittsburgh, Pennsylvania.
About John B. Sanfilippo & Son
John B. Sanfilippo & Son, Inc. engages in the processing and distribution of nuts and nut-related products. It offers peanuts, pecans, cashews, walnuts, almonds, and other nuts under the brands of Fisher, Orchard Valley Harvest, Squirrel Brand, and Southern Style Nuts. The company was founded by Gaspare Sanfilippo and John B. Sanfilippo in 1922 and is headquartered in Elgin, IL.
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