The J. M. Smucker Company (SJM) and Campbell Soup Company (CPB) are two giants in the packaged foods industry, each with deep-rooted histories and diverse product lines. Both companies compete in overlapping markets, including snacks, beverages, and pet foods, while pursuing innovation through brand expansion and product diversification. In this article, I will analyze their strengths and risks to help you decide which company might be the better investment opportunity in 2026.
Table of contents
Companies Overview
I will begin the comparison between The J. M. Smucker Company and Campbell Soup Company by providing an overview of these two companies and their main differences.
The J. M. Smucker Company Overview
The J. M. Smucker Company operates globally in the packaged foods industry, focusing on branded food and beverage products. Its business segments include U.S. Retail Pet Foods, Coffee, and Consumer Foods. Smucker offers a diverse portfolio including coffee, peanut butter, pet food, and frozen snacks, selling through various retail and specialty channels. Founded in 1897, it is headquartered in Orrville, Ohio, with a market cap of approximately 10.7B USD.
Campbell Soup Company Overview
Campbell Soup Company manufactures and markets food and beverage products primarily in the U.S. and Canada, with international reach. It operates through Meals & Beverages and Snacks segments, offering soups, broths, sauces, snacks, and beverages. Campbell’s products are distributed via retail chains, mass merchandisers, and e-commerce channels. Established in 1869 and based in Camden, New Jersey, Campbell has a market cap near 7.9B USD.
Key similarities and differences
Both companies belong to the consumer defensive sector, focusing on packaged foods with broad product ranges and extensive distribution networks. Smucker emphasizes pet foods and coffee alongside consumer foods, while Campbell balances meals, beverages, and snacks. Smucker’s market cap is larger, although Campbell employs more staff. Both have longstanding histories and operate predominantly in the U.S. market.
Income Statement Comparison
The table below presents a side-by-side comparison of key income statement metrics for The J. M. Smucker Company (SJM) and Campbell Soup Company (CPB) for the most recent fiscal year available.
| Metric | The J. M. Smucker Company (SJM) | Campbell Soup Company (CPB) |
|---|---|---|
| Market Cap | 10.7B | 7.9B |
| Revenue | 8.73B | 10.3B |
| EBITDA | -156M | 1.58B |
| EBIT | -658M | 1.14B |
| Net Income | -1.23B | 602M |
| EPS | -11.57 | 2.02 |
| Fiscal Year | 2025 | 2025 |
Income Statement Interpretations
The J. M. Smucker Company
From 2021 to 2025, Smucker’s revenue showed a modest overall growth of 9.04%, while net income declined sharply by 240.45%. Gross margins remained favorable around 38.79%, but EBIT and net margins turned negative in 2025. The latest fiscal year saw revenue grow 6.69%, yet EBIT and net income deteriorated significantly, reflecting margin pressures and increased expenses.
Campbell Soup Company
Campbell Soup exhibited stronger revenue growth of 20.97% over the 2021-2025 period, with net income decreasing by 39.92%. Gross margin at 30.42% and EBIT margin of 11.13% were favorable. In 2025, revenue increased 6.4%, EBIT grew 13.42%, and operating expenses were well controlled, although net margin slightly declined, indicating some margin compression despite overall operational improvements.
Which one has the stronger fundamentals?
Campbell Soup demonstrates stronger fundamentals with higher and stable gross and EBIT margins and positive EBIT growth in the latest year, supported by effective cost management. Conversely, Smucker faces unfavorable EBIT and net margins, with significant net income declines despite revenue growth. Overall, Campbell shows a more resilient and favorable income statement profile over the period.
Financial Ratios Comparison
The table below presents a side-by-side comparison of key financial ratios for The J. M. Smucker Company (SJM) and Campbell Soup Company (CPB) based on their most recent fiscal year data.
| Ratios | The J. M. Smucker Company (SJM) FY 2025 | Campbell Soup Company (CPB) FY 2025 |
|---|---|---|
| ROE | -20.23% | 15.43% |
| ROIC | -5.09% | 7.96% |
| P/E | -10.05 | 15.98 |
| P/B | 2.03 | 2.47 |
| Current Ratio | 0.81 | 0.77 |
| Quick Ratio | 0.35 | 0.28 |
| D/E (Debt-to-Equity) | 1.28 | 1.85 |
| Debt-to-Assets | 44.19% | 48.42% |
| Interest Coverage | -1.88 | 3.92 |
| Asset Turnover | 0.50 | 0.69 |
| Fixed Asset Turnover | 2.73 | 3.71 |
| Payout Ratio | -37.00% | 76.25% |
| Dividend Yield | 3.68% | 4.77% |
Interpretation of the Ratios
The J. M. Smucker Company
The J. M. Smucker Company shows mostly unfavorable financial ratios in 2025, with negative net margin (-14.1%) and return on equity (-20.23%), indicating profitability challenges. Liquidity ratios like current ratio (0.81) and quick ratio (0.35) are weak, raising concerns about short-term financial stability. The dividend yield is a favorable 3.68%, suggesting consistent shareholder returns despite operational difficulties.
Campbell Soup Company
Campbell Soup Company presents a more balanced ratio profile in 2025, with favorable return on equity at 15.43% and weighted average cost of capital at 4.2%. The net margin is neutral at 5.87%, and liquidity ratios remain below 1, signaling potential short-term pressure. The dividend yield is higher at 4.77%, reflecting a strong commitment to shareholder income alongside moderate operational performance.
Which one has the best ratios?
Campbell Soup Company offers a more favorable financial ratio profile overall, with a lower proportion of unfavorable metrics and stronger returns on equity and asset turnover. The J. M. Smucker Company’s ratios reveal significant weaknesses in profitability and liquidity, despite a respectable dividend yield. Hence, Campbell’s ratios indicate relatively better financial health in 2025.
Strategic Positioning
This section compares the strategic positioning of SJM and CPB, focusing on Market position, Key segments, and Exposure to technological disruption:
SJM
- Established market with moderate competitive pressure in packaged foods and pet products.
- Key segments: U.S. Retail Pet Foods, Coffee, Consumer Foods, and International markets.
- No explicit exposure to technological disruption mentioned in provided data.
CPB
- Competes strongly in packaged foods with higher market cap and diversified product lines.
- Key segments: Baked Snacks, Beverages, Soups, and Simple Meals, with broad geographic reach.
- No explicit exposure to technological disruption mentioned in provided data.
SJM vs CPB Positioning
SJM exhibits a diversified portfolio across pet foods, coffee, and consumer foods, while CPB concentrates on snacks, beverages, soups, and meals. SJM’s varied segments contrast with CPB’s focused but broad product categories, reflecting different strategic scopes.
Which has the best competitive advantage?
CPB shows a slightly favorable moat with value creation despite declining ROIC, whereas SJM has a very unfavorable moat with value destruction and declining profitability, indicating CPB’s relative competitive strength.
Stock Comparison
The stock price movements of The J. M. Smucker Company (SJM) and Campbell Soup Company (CPB) over the past 12 months reveal significant declines with decelerating bearish trends, reflecting notable volatility and shifting trading dynamics.
Trend Analysis
The J. M. Smucker Company’s stock declined by 20.49% over the past year, indicating a bearish trend with deceleration. The price ranged from a high of 125.92 to a low of 95.63, showing moderate volatility (std deviation 6.98).
Campbell Soup Company’s stock fell by 37.83% in the same period, also signaling a bearish trend with deceleration. The price fluctuated between 51.89 and 26.39, with similar volatility (std deviation 6.86).
Comparing the two, SJM delivered a higher market performance with a smaller percentage decline than CPB over the past year.
Target Prices
The current analyst consensus indicates moderate upside potential for both The J. M. Smucker Company and Campbell Soup Company.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| The J. M. Smucker Company | 117 | 110 | 113.4 |
| Campbell Soup Company | 38 | 26 | 30.88 |
For The J. M. Smucker Company, the consensus target price of 113.4 suggests around a 13% upside from the current price of 100.12. Campbell Soup’s consensus target of 30.88 also implies a moderate gain from its current 26.39, reflecting generally positive analyst expectations.
Analyst Opinions Comparison
This section compares analysts’ ratings and financial scores for The J. M. Smucker Company and Campbell Soup Company:
Rating Comparison
SJM Rating
- Rating: C+ with a very favorable status.
- Discounted Cash Flow Score: 5, indicating very favorable valuation.
- ROE Score: 1, considered very unfavorable for efficient profit generation.
- ROA Score: 1, very unfavorable for asset utilization effectiveness.
- Debt To Equity Score: 1, very unfavorable financial risk due to high leverage.
- Overall Score: 2, moderate overall financial standing.
CPB Rating
- Rating: B- with a very favorable status.
- Discounted Cash Flow Score: 5, indicating very favorable valuation.
- ROE Score: 3, showing moderate efficiency in generating profit from equity.
- ROA Score: 2, moderate effectiveness in utilizing assets to generate earnings.
- Debt To Equity Score: 1, very unfavorable financial risk from debt levels.
- Overall Score: 3, moderate overall financial standing.
Which one is the best rated?
Based strictly on the provided data, Campbell Soup Company holds a better overall rating (B-) compared to The J. M. Smucker Company’s C+. CPB also scores higher in ROE, ROA, and overall financial health, despite both sharing a very unfavorable debt-to-equity score.
Scores Comparison
Here is a comparison of the Altman Z-Score and Piotroski Score for both companies:
SJM Scores
- Altman Z-Score: 0.90, in the distress zone indicating high bankruptcy risk.
- Piotroski Score: 4, classified as average financial strength.
CPB Scores
- Altman Z-Score: 1.73, also in the distress zone with moderate-high bankruptcy risk.
- Piotroski Score: 5, slightly stronger but still average financial strength.
Which company has the best scores?
Based strictly on the scores, CPB has a higher Altman Z-Score and Piotroski Score than SJM, indicating marginally better financial stability and strength according to these metrics.
Grades Comparison
Here is a detailed comparison of the grade data available for both companies:
The J. M. Smucker Company Grades
This table summarizes recent grades and actions from various reputable grading companies for The J. M. Smucker Company:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| TD Cowen | Maintain | Hold | 2026-01-08 |
| Bernstein | Maintain | Market Perform | 2025-11-26 |
| Stifel | Maintain | Hold | 2025-11-26 |
| UBS | Maintain | Buy | 2025-11-26 |
| Morgan Stanley | Maintain | Overweight | 2025-11-26 |
| JP Morgan | Maintain | Overweight | 2025-11-26 |
| Stifel | Maintain | Hold | 2025-10-24 |
| Argus Research | Downgrade | Hold | 2025-09-12 |
| Barclays | Maintain | Equal Weight | 2025-08-29 |
| JP Morgan | Maintain | Overweight | 2025-08-28 |
The overall grading trend for The J. M. Smucker Company is generally neutral to positive, with a majority of Hold and Overweight ratings and a few Buy grades.
Campbell Soup Company Grades
This table presents recent grades and actions by recognized grading firms for Campbell Soup Company:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| DA Davidson | Maintain | Neutral | 2025-12-11 |
| RBC Capital | Maintain | Sector Perform | 2025-12-10 |
| Wells Fargo | Maintain | Equal Weight | 2025-12-10 |
| Stifel | Maintain | Hold | 2025-12-10 |
| UBS | Maintain | Sell | 2025-12-10 |
| Bernstein | Maintain | Outperform | 2025-12-10 |
| Stephens & Co. | Maintain | Overweight | 2025-12-08 |
| Morgan Stanley | Maintain | Equal Weight | 2025-12-05 |
| UBS | Maintain | Sell | 2025-12-04 |
| Wells Fargo | Maintain | Equal Weight | 2025-09-25 |
Campbell Soup Company’s grades display a wider range, from Sell to Outperform, reflecting mixed opinions among analysts and a relatively cautious consensus.
Which company has the best grades?
Both companies have a consensus rating of “Hold,” but The J. M. Smucker Company shows a stronger bias toward Buy and Overweight ratings. In contrast, Campbell Soup has more Sell and Equal Weight grades, suggesting a more cautious outlook that could influence investor decisions on risk exposure and portfolio allocation.
Strengths and Weaknesses
Below is a comparison of key strengths and weaknesses for The J. M. Smucker Company (SJM) and Campbell Soup Company (CPB) based on their recent financial and operational data.
| Criterion | The J. M. Smucker Company (SJM) | Campbell Soup Company (CPB) |
|---|---|---|
| Diversification | Moderate: Revenue spread across pet foods, coffee, snacks, and consumer foods with international exposure. | Moderate to High: Well-diversified among baked snacks, beverages, soups, and simple meals. |
| Profitability | Weak: Negative net margin (-14.1%) and ROIC (-5.09%), indicating value destruction. | Stable: Positive net margin (5.87%) and ROIC (7.96%), showing value creation but declining trend. |
| Innovation | Limited: Declining ROIC trend suggests challenges in sustaining competitive advantage. | Moderate: Slightly favorable moat with some innovation but ROIC declining. |
| Global presence | Moderate: Significant U.S. retail focus with growing international segment (~$1.2B in 2025). | Moderate: Primarily U.S.-focused, less international exposure. |
| Market Share | Concentrated in U.S. pet foods and coffee markets; declining segment revenues in some areas. | Strong in baked snacks and soups with substantial market share and consistent revenue. |
Key takeaway: Campbell Soup Company holds a slight edge due to better profitability and value creation despite some decline in ROIC. The J. M. Smucker Company struggles with profitability and value destruction, which requires cautious risk management before investing.
Risk Analysis
The table below summarizes key risk factors for The J. M. Smucker Company (SJM) and Campbell Soup Company (CPB) based on the latest available data for 2025.
| Metric | The J. M. Smucker Company (SJM) | Campbell Soup Company (CPB) |
|---|---|---|
| Market Risk | Low beta (0.22) indicates low volatility | Negative beta (-0.043) suggests minimal correlation with market swings |
| Debt Level | Debt-to-equity 1.28 (unfavorable), interest coverage negative (-1.84) | Debt-to-equity 1.85 (unfavorable), interest coverage moderate (3.31) |
| Regulatory Risk | Moderate, standard food industry regulations | Moderate, with exposure to international markets |
| Operational Risk | Unfavorable asset turnover (0.5), weak liquidity ratios | Moderate asset turnover (0.69), weak liquidity but better than SJM |
| Environmental Risk | Average, typical for packaged foods industry | Average, similarly exposed to environmental regulations |
| Geopolitical Risk | Low, primarily U.S.-based operations | Moderate, some exposure to Latin America markets |
The most impactful risks are financial: SJM faces high leverage with poor interest coverage and negative profitability metrics, raising bankruptcy concerns, while CPB shows better operational efficiency but also carries significant debt. Market risk is low for both, but CPB’s international exposure adds geopolitical complexity.
Which Stock to Choose?
The J. M. Smucker Company (SJM) shows a mixed income evolution with revenue growth of 9.04% overall but declining net margin and EPS, resulting in an unfavorable global income statement. Its financial ratios are mostly unfavorable, including negative ROE and net margin, with a very unfavorable global ratios opinion. The company carries moderate debt, a low current ratio, and a very unfavorable moat status indicating value destruction and declining profitability; its rating is C+ with moderate overall scores and distress zone Altman Z-Score.
Campbell Soup Company (CPB) demonstrates favorable income statement metrics with steady revenue growth of 20.97% overall and a positive EBIT margin, though net income and margin growth are negative. Its financial ratios are slightly favorable, supported by positive ROE and dividend yield, neutral debt-to-assets, and a slightly favorable moat showing value creation despite declining ROIC. CPB holds a B- rating, moderate overall scores, and remains in the distress zone per Altman Z-Score.
Investors prioritizing value creation and better financial health might find CPB more aligned with such objectives given its favorable income and ratios profile, while those focusing on turnaround potential could interpret SJM’s metrics differently. The choice might also depend on risk tolerance, with CPB showing slightly more stability and SJM exhibiting higher financial challenges.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of The J. M. Smucker Company and Campbell Soup Company to enhance your investment decisions:
