The J. M. Smucker Company and The Magnum Ice Cream Company N.V. are two key players in the packaged foods industry, each with distinct product focuses yet overlapping market presence. Smucker’s diverse portfolio spans coffee, pet foods, and spreads, while Magnum specializes exclusively in ice cream. Their innovation strategies and consumer appeal in the competitive food sector make this comparison essential. In this article, I will help you decide which company holds the most promise for your investment portfolio.
Table of contents
Companies Overview
I will begin the comparison between The J. M. Smucker Company and The Magnum Ice Cream Company N.V. by providing an overview of these two companies and their main differences.
The J. M. Smucker Company Overview
The J. M. Smucker Company, founded in 1897 and headquartered in Orrville, Ohio, operates globally in the packaged foods sector. It manufactures and markets a diverse range of branded food and beverage products, including coffee, peanut butter, pet foods, and frozen snacks. The company targets multiple retail channels and maintains a broad product portfolio with well-known brands such as Folgers, Jif, and Meow Mix.
The Magnum Ice Cream Company N.V. Overview
Based in Amsterdam, The Magnum Ice Cream Company N.V. specializes exclusively in the ice cream business. Founded recently with an IPO in 2025, it operates within the packaged foods sector serving the consumer defensive market. The company employs a significant workforce and focuses on maintaining its position in the ice cream niche, offering products primarily distributed across various retail outlets.
Key similarities and differences
Both companies operate in the consumer defensive sector within packaged foods and trade on the NYSE. Smucker has a diversified product portfolio across multiple food categories and a longer market presence. In contrast, Magnum Ice Cream concentrates solely on ice cream products and has a smaller market cap but a larger workforce. Their business models differ mainly in product scope and geographic focus, with Smucker operating internationally and Magnum Ice Cream based in the Netherlands.
Income Statement Comparison
The table below provides a factual comparison of key income statement metrics for The J. M. Smucker Company and The Magnum Ice Cream Company N.V. for their most recent fiscal years.
| Metric | The J. M. Smucker Company (SJM) | The Magnum Ice Cream Company N.V. (MICC) |
|---|---|---|
| Market Cap | 10.7B USD | 9.3B USD |
| Revenue | 8.73B USD | 7.95B EUR |
| EBITDA | -156M USD | 1.10B EUR |
| EBIT | -658M USD | 725M EUR |
| Net Income | -1.23B USD | 450M EUR |
| EPS | -11.57 USD | 0.74 EUR |
| Fiscal Year | 2025 | 2024 |
Income Statement Interpretations
The J. M. Smucker Company
From 2021 to 2025, The J. M. Smucker Company exhibited moderate revenue growth of 9.04% but faced a significant decline in net income, with a negative net margin reaching -14.1% in 2025. Gross margins remained relatively stable and favorable at 38.79%, yet EBIT and net income margins deteriorated sharply. The 2025 fiscal year saw a slowdown in profitability, marked by a large net loss of -$1.23B despite a 6.69% revenue increase.
The Magnum Ice Cream Company N.V.
Between 2022 and 2024, The Magnum Ice Cream Company N.V. recorded steady revenue growth of 5.88% with a favorable gross margin near 34.91%. EBIT margins were stable at 9.12%, while net margins were positive but declined to 5.66% in 2024. The latest year showed modest revenue growth of 4.32%, though net margin and EPS decreased, reflecting some pressure on bottom-line profitability despite operational stability.
Which one has the stronger fundamentals?
Both companies present challenges, with unfavorable overall income statement evaluations. Smucker struggles with steep net income losses and negative EBIT margins despite revenue growth, while Magnum maintains positive margins but experiences declining net income and EPS. Smucker’s larger volatility contrasts with Magnum’s steadier but shrinking profitability. Neither currently demonstrates clearly stronger fundamentals based solely on income statement trends.
Financial Ratios Comparison
The following table presents the most recent financial ratios for The J. M. Smucker Company (SJM) and The Magnum Ice Cream Company N.V. (MICC), illustrating key performance and financial health metrics for fiscal year 2025 and 2024 respectively.
| Ratios | The J. M. Smucker Company (2025) | The Magnum Ice Cream Company N.V. (2024) |
|---|---|---|
| ROE | -20.23% | 16.20% |
| ROIC | -5.09% | 16.42% |
| P/E | -10.05 | 19.60 |
| P/B | 2.03 | 3.18 |
| Current Ratio | 0.81 | 0.80 |
| Quick Ratio | 0.35 | 0.35 |
| D/E (Debt-to-Equity) | 1.28 | 0.07 |
| Debt-to-Assets | 44.19% | 3.41% |
| Interest Coverage | -1.88 | 5.18 |
| Asset Turnover | 0.50 | 1.44 |
| Fixed Asset Turnover | 2.73 | 3.37 |
| Payout ratio | -37.00% | 2.44% |
| Dividend yield | 3.68% | 0.12% |
Interpretation of the Ratios
The J. M. Smucker Company
The J. M. Smucker Company shows predominantly unfavorable financial ratios in 2025, including negative net margin (-14.1%) and return on equity (-20.23%). Liquidity ratios like the current ratio (0.81) and quick ratio (0.35) are weak, indicating potential short-term financial stress. Dividend yield is favorable at 3.68%, reflecting a steady payout despite profitability concerns.
The Magnum Ice Cream Company N.V.
The Magnum Ice Cream Company N.V. exhibits mostly favorable ratios in 2024, with strong returns such as ROE at 16.2% and ROIC at 16.42%. Liquidity ratios remain weak (current ratio 0.8, quick ratio 0.35), but low debt levels (debt to equity 0.07) and solid interest coverage (5.11) support financial stability. The company does not pay dividends, consistent with reinvestment or growth priorities.
Which one has the best ratios?
Based on the evaluations, The Magnum Ice Cream Company N.V. displays a more favorable ratio profile with stronger profitability, better leverage management, and healthier coverage ratios. The J. M. Smucker Company faces multiple unfavorable ratios, especially in profitability and liquidity, despite a higher dividend yield. Overall, Magnum’s ratios suggest comparatively better financial health.
Strategic Positioning
This section compares the strategic positioning of The J. M. Smucker Company (SJM) and The Magnum Ice Cream Company N.V. (MICC), including market position, key segments, and exposure to disruption:
The J. M. Smucker Company
- Large market cap at 10.7B USD, faces competitive pressure in packaged foods sector.
- Diversified key segments: U.S. Retail Pet Foods, Coffee, Consumer Foods, snacks, and international sales.
- No explicit data on technological disruption exposure provided.
The Magnum Ice Cream Company N.V.
- Market cap 9.3B USD, focused competition in ice cream segment within packaged foods.
- Concentrated on ice cream products, with no other business segments reported.
- No explicit data on technological disruption exposure provided.
The J. M. Smucker Company vs The Magnum Ice Cream Company N.V. Positioning
SJM follows a diversified approach across multiple food and beverage segments, providing varied revenue streams but facing broad competition. MICC maintains a focused strategy in ice cream, limiting diversification but potentially benefiting from specialization.
Which has the best competitive advantage?
Based on MOAT evaluation, MICC shows a favorable competitive advantage with positive value creation and stable profitability. SJM has a very unfavorable moat status, indicating value destruction and declining profitability.
Stock Comparison
The stock price movements of The J. M. Smucker Company and The Magnum Ice Cream Company N.V. over the past year reveal distinct bearish trends with differing volatility and trading volume dynamics.
Trend Analysis
The J. M. Smucker Company (SJM) experienced a bearish trend over the past 12 months with a significant price decline of -20.49%, showing deceleration and notable volatility with a standard deviation of 6.98. The stock’s highest and lowest prices were 125.92 and 95.63, respectively.
The Magnum Ice Cream Company N.V. (MICC) also showed a bearish trend with a smaller price decline of -3.97% over the last year, accompanied by stable acceleration and low volatility, reflected by a standard deviation of 0.26. Price ranged narrowly between 15.88 and 15.24.
Comparing both stocks, SJM delivered the largest negative market performance with a sharper price drop, while MICC’s decline was more moderate, indicating relatively better stability in price movement.
Target Prices
The current analyst target consensus reveals moderate upside potential for both companies.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| The J. M. Smucker Company | 117 | 110 | 113.4 |
| The Magnum Ice Cream Company N.V. | 16 | 16 | 16 |
Analysts expect The J. M. Smucker Company’s stock to appreciate moderately from $100.12 to around $113.4. Magnum Ice Cream’s consensus target of $16 is slightly above its current price of $15.24, indicating a modest positive outlook.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for The J. M. Smucker Company (SJM) and The Magnum Ice Cream Company N.V. (MICC):
Rating Comparison
SJM Rating
- Rating: C+ indicating a very favorable status overall.
- Discounted Cash Flow Score: 5, considered very favorable, suggesting strong DCF valuation.
- ROE Score: 1, very unfavorable, showing low efficiency in generating profit from equity.
- ROA Score: 1, very unfavorable, reflecting poor asset utilization.
- Debt To Equity Score: 1, very unfavorable, suggesting high financial risk.
- Overall Score: 2, moderate, reflecting a middling overall financial standing.
MICC Rating
- Rating: B- indicating a very favorable overall status.
- Discounted Cash Flow Score: 1, very unfavorable, indicating weak DCF valuation.
- ROE Score: 5, very favorable, indicating high efficiency in generating profit from equity.
- ROA Score: 4, favorable, showing effective use of assets to generate earnings.
- Debt To Equity Score: 1, very unfavorable, indicating similarly high financial risk.
- Overall Score: 3, moderate, indicating a slightly better overall financial standing.
Which one is the best rated?
Based strictly on the provided data, MICC has a higher overall rating (B- vs. C+) and better scores in ROE and ROA, while SJM scores higher in discounted cash flow. Both companies share low debt-to-equity scores, reflecting similar financial risk.
Scores Comparison
Here is the comparison of the financial scores for The J. M. Smucker Company and The Magnum Ice Cream Company N.V.:
SJM Scores
- Altman Z-Score: 0.90, indicating financial distress and high risk
- Piotroski Score: 4, reflecting average financial strength
MICC Scores
- Not available
- Not available
Which company has the best scores?
Based on the available data, only SJM’s scores are provided. SJM is currently in financial distress with an average Piotroski score, while MICC’s scores are not available for comparison.
Grades Comparison
Here is the comparison of the available grades for the two companies:
The J. M. Smucker Company Grades
The following table summarizes recent grades from reliable 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 grades for The J. M. Smucker Company mostly range between Hold and Buy/Overweight, indicating a generally neutral to moderately positive consensus.
The Magnum Ice Cream Company N.V. Grades
No reliable grades are available for The Magnum Ice Cream Company N.V.
Which company has the best grades?
The J. M. Smucker Company has received multiple grades ranging from Hold to Buy/Overweight, while The Magnum Ice Cream Company N.V. lacks any grading data. This suggests a clearer analyst consensus for Smucker, potentially aiding investors in decision-making.
Strengths and Weaknesses
The following table summarizes the key strengths and weaknesses of The J. M. Smucker Company (SJM) and The Magnum Ice Cream Company N.V. (MICC) based on their recent financial performance, competitive advantages, and market positions.
| Criterion | The J. M. Smucker Company (SJM) | The Magnum Ice Cream Company N.V. (MICC) |
|---|---|---|
| Diversification | Moderate: multiple product segments including pet foods, coffee, snacks, and consumer foods, but some segments declining | Limited data on product range, likely focused on ice cream products |
| Profitability | Weak: negative net margin (-14.1%) and ROIC (-5.09%), value destroying | Strong: positive net margin (5.66%), ROIC (16.42%), value creating |
| Innovation | Low: declining ROIC trend suggests challenges in sustaining competitive advantage | Stable profitability indicates steady innovation or market positioning |
| Global presence | Moderate international sales (~$1.2B), mainly US focused | Presumably smaller global footprint, focus on niche market |
| Market Share | Established in consumer foods and pet foods but losing profitability | Growing or stable market share with favorable financial ratios |
Key takeaways: MICC shows stronger financial health and a favorable competitive position, while SJM struggles with declining profitability and value destruction despite diversified operations. Investors should weigh MICC’s stability against SJM’s risks carefully.
Risk Analysis
Below is a comparative table highlighting key risks for The J. M. Smucker Company (SJM) and The Magnum Ice Cream Company N.V. (MICC) based on the most recent data available:
| Metric | The J. M. Smucker Company (SJM) | The Magnum Ice Cream Company N.V. (MICC) |
|---|---|---|
| Market Risk | Low beta of 0.22 indicates low market volatility risk | Beta of 0, implying virtually no market risk exposure |
| Debt level | Debt-to-Equity 1.28 (unfavorable), Debt-to-Assets 44.19% (neutral) | Debt-to-Equity 0.07 (favorable), Debt-to-Assets 3.41% (favorable) |
| Regulatory Risk | Moderate, US food and pet food sectors face evolving health and safety regulations | Moderate, EU regulations on food safety and environmental standards apply |
| Operational Risk | Low current (0.81) and quick ratios (0.35) signal liquidity challenges | Low current (0.8) and quick ratios (0.35) also suggest liquidity constraints |
| Environmental Risk | Moderate, food production impacts and sustainability pressures | Moderate to high, ice cream production’s energy and packaging footprint under scrutiny |
| Geopolitical Risk | Moderate, exposure mainly domestic US market | Elevated, European base with potential exposure to EU trade policies and global supply chain disruptions |
Synthesis: SJM faces significant debt and liquidity risks with a high likelihood of impacting financial stability, reflected in its distress zone Altman Z-Score. MICC shows strong financial health with low debt but shares liquidity challenges. Environmental and geopolitical risks are more pronounced for MICC due to its EU base and industry footprint. Investors should weigh SJM’s financial distress against MICC’s operational risks when managing portfolio exposure.
Which Stock to Choose?
The J. M. Smucker Company (SJM) shows mixed income evolution with a favorable gross margin but unfavorable net margin and earnings growth. Financial ratios reveal mostly unfavorable profitability and liquidity metrics, coupled with moderate debt levels. The company’s rating is very favorable overall, yet its economic moat is very unfavorable due to declining ROIC below WACC, indicating value destruction.
The Magnum Ice Cream Company N.V. (MICC) displays stable income with a favorable gross margin and neutral EBIT margin, although net margin growth is slightly negative. Its financial ratios are predominantly favorable, highlighting strong profitability and low debt. MICC holds a very favorable rating and a favorable economic moat with ROIC exceeding WACC, reflecting efficient capital use and sustained competitive advantage.
Investors focused on value creation and stable profitability might find MICC’s financial health and competitive moat more appealing, while those willing to consider a company with a moderate rating but facing profitability challenges may see SJM differently. The choice could depend on an investor’s risk tolerance and preference for growth versus stability.
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 The Magnum Ice Cream Company N.V. to enhance your investment decisions:
