J&J Snack Foods Corp. (JJSF), Mondelez International Inc (MDLZ): Is This Snack Food Company a Buy for the Long Run?

Peer comparison

At $72 per share, J&J Snack Foods Corp. (NASDAQ:JJSF) is worth around $1.35 billion on the market. It is valued at 10.35 times EV/EBITDA. Compared to its peers, including Snyder S Lance Inc (NASDAQ:LNCE) and Mondelez International Inc (NASDAQ:MDLZ), J&J has the cheapest valuation. Snyder’s-Lance is trading at around $25 per share, with a total market cap of $1.7 billion. It has the most expensive valuation at around 13.85 times EV/EBITDA. Mondelez, at $29 per share, has around $52 billion in total market cap. The market values Mondelez International Inc (NASDAQ:MDLZ) at 12.24 times EV/EBITDA.

Among the three, Mondelez International Inc (NASDAQ:MDLZ) is the most profitable company with the largest operating margin of 12.2%. While the operating margin of J&J is 10.8%, Snyder’s-Lance generated the smallest operating margin at only 6.72%. Income investors might like Mondelez International Inc (NASDAQ:MDLZ) the best as it pays the highest dividend yield at 3.5%, while the dividend yields of J&J and Snyder’s-Lance are 0.8% and 2.6%, respectively.

Foolish bottom line

J&J Snack Foods could be considered a good stock for investors to hold in the long run. However, among the three, I like Mondelez International Inc (NASDAQ:MDLZ)the best due to its juicy dividend yield, high profitability and reasonable valuation.

The article Is This Snack Food Company a Buy for the Long Run? originally appeared on Fool.com and is written by Anh HOANG.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

–>