B&G Foods, Inc. (BGS): Is This Company a Buy After Its Latest Move?

The J.M. Smucker Company (NYSE:SJM) has a similar EBITDA multiple. At $101 per share, J.M. Smucker is worth around $10.9 billion. The market values J.M. Smucker the cheapest, at around 9.8 times its EV/EBITDA. J.M. Smucker operates in three main business segments: U.S. Retail Coffee, U.S. Retail Consumer Foods, and International, Foodservice and Natural Foods. For the full fiscal year 2014, J.M. Smucker expects to generate around $5.65 to $5.75 non-GAAP EPS, excluding special project costs of around $0.20 per share. The free cash flow is estimated to be around $600 million.

Among the three companies, investors might like B&G Foods, Inc. (NYSE:BGS) the most with its juiciest dividend yield. At the current price, B&G Foods offers shareholders dividend with a yield of 4%. General Mills, Inc. (NYSE:GIS) ranks second with a 3.20% dividend yield, while The J.M. Smucker Company (NYSE:SJM) has the lowest dividend yield at 2.10%.

My Foolish take

Historically, B&G Foods, Inc. (NYSE:BGS) has been quite successful in acquiring food brands and integrating them into its product portfolio. Pirate Brands could help B&G to expand the flavor offering, and the snack food business could be the way to drive B&G’s overall growth. Thus, B&G Foods could benefit shareholders in the future after Pirate Brands’ integration. Moreover, income investors could get a juicy dividend yield if investing in the company at its current trading price.

Anh HOANG has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

The article Is This Company a Buy After Its Latest Move? originally appeared on Fool.com.

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