Head-To-Head Analysis: General Mills (NYSE:GIS) versus Grupo Bimbo (OTCMKTS:GRBMF)

General Mills (NYSE:GIS) and Grupo Bimbo (OTCMKTS:GRBMF) are both consumer defensive companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, valuation, dividends, analyst recommendations, institutional ownership and profitability.

Earnings & Valuation

This table compares General Mills and Grupo Bimbo’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
General Mills	$19.86 billion	1.99	$2.50 billion	$4.31	16.43
Grupo Bimbo	N/A	N/A	N/A	$1.14	3.11

General Mills has higher revenue and earnings than Grupo Bimbo. Grupo Bimbo is trading at a lower price-to-earnings ratio than General Mills, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares General Mills and Grupo Bimbo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
General Mills	12.57%	26.56%	8.40%
Grupo Bimbo	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current ratings and recommmendations for General Mills and Grupo Bimbo, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
General Mills	1	14	3	0	2.11
Grupo Bimbo	0	0	0	0	N/A

General Mills currently has a consensus price target of $69.71, suggesting a potential downside of 1.59%. Given General Mills’ higher probable upside, equities research analysts clearly believe General Mills is more favorable than Grupo Bimbo.

Insider and Institutional Ownership

75.7% of General Mills shares are owned by institutional investors. Comparatively, 5.6% of Grupo Bimbo shares are owned by institutional investors. 0.2% of General Mills shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

General Mills beats Grupo Bimbo on 10 of the 10 factors compared between the two stocks.

About General Mills

General Mills, Inc. manufactures and markets branded consumer foods worldwide. The company operates through four segments: North America Retail; International; Pet; and North America Foodservice. It offers grain, ready-to-eat cereals, refrigerated yogurt, soup, meal kits, refrigerated and frozen dough products, dessert and baking mixes, bakery flour, frozen pizza and pizza snacks, snack bars, fruit and savory snacks, ice cream and frozen desserts, unbaked and fully baked frozen dough products, frozen hot snacks, ethnic meals, side dish mixes, frozen breakfast and entrees, nutrition bars, and frozen and shelf-stable vegetables. The company also manufactures and markets pet food products, including dog and cat food; and operates ice cream parlors. It markets its products under the Annie’s, Betty Crocker, Bisquick, Blue Buffalo, Bugles, Cascadian Farm, Cheerios, Chex, Cinnamon Toast Crunch, Cocoa Puffs, Cookie Crisp, Dunkaroos, Edgard & Cooper, Fiber One, Fruit by the Foot, Fruit Gushers, Fruit Roll-Ups, Gardetto’s, Gold Medal, Golden Grahams, Häagen-Dazs, Kitano, Kix, Lärabar, Latina, Lucky Charms, Muir Glen, Nature Valley, Nudges, Oatmeal Crisp, Old El Paso, Pillsbury, Progresso, Tastefuls, Total, Totino’s , Trix, True Chews, True Solutions, Wanchai Ferry, Wheaties, Wilderness, and Yoki brands. The company sells its products to grocery stores, mass merchandisers, membership stores, natural food chains, drug, dollar and discount chains, e-commerce retailers, commercial and noncommercial foodservice distributors and operators, restaurants, convenience stores, and pet specialty stores. General Mills, Inc. was founded in 1866 and is headquartered in Minneapolis, Minnesota.

About Grupo Bimbo

Grupo Bimbo, S.A.B. de C.V., together with its subsidiaries, produces, distributes, and sells various bakery products. It offers sliced bread, buns and rolls, pastries, cakes, cookies, toast, English muffins, bagels, tortillas and flatbreads, and salty snacks. The company provides its products under various brands. It operates bakeries and other plants in Mexico, the United States, Europe, Asia, and Africa. Grupo Bimbo, S.A.B. de C.V. was founded in 1945 and is headquartered in Mexico City, Mexico.