BBB Foods (NYSE:TBBB) versus Colgate-Palmolive (NYSE:CL) Financial Survey

BBB Foods (NYSE:TBBB) and Colgate-Palmolive (NYSE:CL) are both consumer staples companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, profitability, earnings and analyst recommendations.

Institutional and Insider Ownership

8.4% of BBB Foods shares are owned by institutional investors. Comparatively, 80.4% of Colgate-Palmolive shares are owned by institutional investors. 0.4% of Colgate-Palmolive shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

BBB Foods has a beta of -0.16, meaning that its share price is 116% less volatile than the S&P 500. Comparatively, Colgate-Palmolive has a beta of 0.28, meaning that its share price is 72% less volatile than the S&P 500.

Profitability

This table compares BBB Foods and Colgate-Palmolive’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BBB Foods	-2.61%	-44.56%	-7.47%
Colgate-Palmolive	10.45%	353.72%	17.63%

Earnings and Valuation

This table compares BBB Foods and Colgate-Palmolive”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BBB Foods	$72.53 billion	0.05	$18.36 million	($0.84)	-39.44
Colgate-Palmolive	$20.38 billion	3.70	$2.13 billion	$2.62	35.71

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

Analyst Recommendations

This is a breakdown of current ratings for BBB Foods and Colgate-Palmolive, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BBB Foods	1	4	3	0	2.25
Colgate-Palmolive	0	6	11	0	2.65

BBB Foods currently has a consensus target price of $39.00, indicating a potential upside of 17.72%. Colgate-Palmolive has a consensus target price of $94.75, indicating a potential upside of 1.28%. Given BBB Foods’ higher probable upside, analysts plainly believe BBB Foods is more favorable than Colgate-Palmolive.

Summary

Colgate-Palmolive 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 Colgate-Palmolive

Colgate-Palmolive Company, together with its subsidiaries, manufactures and sells consumer products in the United States and internationally. It operates through two segments: Oral, Personal and Home Care; and Pet Nutrition. The Oral, Personal and Home Care segment offers toothpaste, toothbrushes, mouthwash, bar and liquid hand soaps, shower gels, shampoos, conditioners, deodorants and antiperspirants, skin health products, dishwashing detergents, fabric conditioners, household cleaners, and other related items. This segment markets and sells its products under various brands, which include Colgate, Darlie, elmex, hello, meridol, Sorriso, Tom's of Maine, Irish Spring, Palmolive, Protex, Sanex, Softsoap, Lady Speed Stick, Speed Stick, EltaMD, Filorga, PCA SKIN, Ajax, Axion, Fabuloso, Murphy, Suavitel, and Soupline to a range of traditional and eCommerce retailers, wholesalers, and distributors. It includes pharmaceutical products for dentists and other oral health professionals. Its Pet Nutrition segment offers pet nutrition products for everyday nutritional needs under the Hill's Science Diet brand; and a range of therapeutic pet products to help nutritionally support dogs and cats in different stages of health under the Hill's Prescription Diet brand. This segment markets and sells its products through pet supply retailers, veterinarians, and eCommerce retailers. Colgate-Palmolive Company was founded in 1806 and is headquartered in New York, New York.