US Foods (NYSE:USFD – Get Free Report) and John B. Sanfilippo & Son (NASDAQ:JBSS – Get Free Report) are both consumer staples companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, institutional ownership, dividends, risk, analyst recommendations, earnings and valuation.
Profitability
This table compares US Foods and John B. Sanfilippo & Son’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| US Foods | 1.43% | 17.71% | 5.88% |
| John B. Sanfilippo & Son | 6.15% | 19.73% | 11.82% |
Volatility and Risk
US Foods has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500. Comparatively, John B. Sanfilippo & Son has a beta of 0.36, suggesting that its share price is 64% less volatile than the S&P 500.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| US Foods | $37.88 billion | 0.49 | $494.00 million | $2.40 | 34.81 |
| John B. Sanfilippo & Son | $1.11 billion | 0.85 | $58.93 million | $5.62 | 14.40 |
US Foods has higher revenue and earnings than John B. Sanfilippo & Son. John B. Sanfilippo & Son is trading at a lower price-to-earnings ratio than US Foods, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings and price targets for US Foods and John B. Sanfilippo & Son, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| US Foods | 0 | 2 | 9 | 0 | 2.82 |
| John B. Sanfilippo & Son | 0 | 2 | 1 | 0 | 2.33 |
US Foods currently has a consensus price target of $90.00, indicating a potential upside of 7.71%. John B. Sanfilippo & Son has a consensus price target of $109.00, indicating a potential upside of 34.73%. Given John B. Sanfilippo & Son’s higher possible upside, analysts clearly believe John B. Sanfilippo & Son is more favorable than US Foods.
Institutional & Insider Ownership
98.8% of US Foods shares are held by institutional investors. Comparatively, 70.6% of John B. Sanfilippo & Son shares are held by institutional investors. 0.6% of US Foods shares are held by company insiders. Comparatively, 30.2% of John B. Sanfilippo & Son shares are held 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.
About US Foods
US Foods Holding Corp., together with its subsidiaries, engages in marketing, sale, and distribution of fresh, frozen, and dry food and non-food products to foodservice customers in the United States. The company's customers include independently owned single and multi-unit restaurants, regional concepts, national restaurant chains, hospitals, nursing homes, hotels and motels, country clubs, government and military organizations, colleges and universities, and retail locations. The company was formerly known as USF Holding Corp. and changed its name to US Foods Holding Corp. in February 2016. US Foods Holding Corp. was incorporated in 2007 and is headquartered in Rosemont, Illinois.
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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