Mondelez International, Inc. MDLZ and The J.M. Smucker Co. SJM are both branded food companies, making them a useful pair to compare right now. Mondelez (market cap about $74.1 billion) is a global snacking leader built around brands like Oreo, Cadbury and Ritz, while Smucker (market cap about $10 billion) is more U.S.-focused, with businesses spanning coffee, peanut butter, pet food and sweet baked snacks.
Both companies rely on strong brand equity, steady demand for everyday products and pricing power to offset input cost pressures. The comparison is especially relevant now as both are navigating similar macro challenges with different execution paths. Mondelez is dealing with cocoa-driven margin pressure and softer volumes, while Smucker is leaning on pricing in coffee and growth brands like Uncrustables, even as parts of its portfolio remain under pressure.
Overall, this sets up a clear face-off between a global snacking giant managing commodity volatility and a more domestic player working to improve mix and sustain earnings in a still uncertain consumer environment.
The Case for MDLZ
Mondelez International combines global scale, category leadership and strong cash generation with a portfolio of widely recognized brands. In 2025, the company generated $38.5 billion in net revenues, with reported growth of 5.8% and organic net revenue growth of 4.3%, supported by pricing across both developed and emerging markets. Emerging markets were a clear source of strength, while the broader business continues to benefit from geographic diversification and leadership positions in biscuits, chocolate and gum.
The company’s financial profile is also supported by healthy cash generation and disciplined capital allocation. Mondelez produced $4.5 billion in operating cash flow and $3.2 billion in free cash flow in 2025 while returning $4.9 billion to shareholders through dividends and share repurchases.
Mondelez continues to emphasize structural cost savings, brand investment, distribution expansion and innovation, particularly in faster-growing areas such as premium, protein and better-for-you snacks. These factors support the view that MDLZ has the scale and brand strength to keep compounding over time.
That said, the story is not without near-term pressure. Profitability was weighed down in 2025 by unusually high cocoa costs, and volume/mix trends remained negative as pricing actions pressured demand in some categories. However, the company returned to adjusted EPS growth in the fourth quarter, suggesting that some of the worst cost pressure may be easing.
With resilient sales, strong brands, solid cash flow and a credible path toward margin stabilization, Mondelez remains well positioned for steady long-term growth.
The Case for SJM
The J.M. Smucker presents a fundamentally solid story anchored in its diversified portfolio, pricing power and improving cash generation. The company delivered 7% net sales growth in its most recent quarter (third quarter of fiscal 2026), with comparable sales up 8%, driven primarily by strong net price realization — particularly in its coffee business. Core brands such as Folgers, Dunkin’, Jif, Uncrustables and Cafe Bustelo continue to provide stability and scale, while growth platforms like Uncrustables and Cafe Bustelo are helping drive incremental demand and expand household penetration.
A key positive is Smucker’s improving cash flow profile and disciplined capital allocation. The company generated $558 million in operating cash flow and $487 million in free cash flow in the quarter, a significant step-up year over year. Management continues to prioritize a balanced capital deployment strategy, including reinvestment in growth brands, debt reduction and shareholder returns. At the same time, the company is actively reshaping its portfolio — exiting lower-growth assets and focusing on higher-margin, faster-growing categories such as coffee, frozen handhelds and pet food.
That said, near-term profitability remains uneven. Adjusted earnings declined year over year in the quarter, reflecting higher input costs, tariffs and some volume/mix pressure, particularly in sweet baked snacks. The Hostess segment has faced operational and execution challenges, leading to weaker performance and impairment charges. However, management is taking corrective actions, including SKU rationalization, cost controls and operational improvements, which should support stabilization over time.
Overall, Smucker’s combination of strong brands, pricing-led growth, improving cash flow and portfolio optimization provides a solid foundation. As execution improves and headwinds in weaker segments are addressed, the company is positioned to deliver more consistent top-line growth and margin expansion over the medium term.
How Does the Zacks Consensus Estimate Compare for MDLZ & SJM?
The Zacks Consensus Estimate for MDLZ’s current fiscal-year EPS has edged down by a penny to $3.03 over the past 30 days, while the consensus mark for next fiscal-year EPS has inched up by a penny to $3.40 over the same period.
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For SJM, the consensus estimate for the current fiscal-year EPS has also slipped by a penny to $9.05 over the past 30 days, whereas the consensus mark for the next fiscal year has declined 0.7% to $9.84.
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This indicates that earnings expectations for MDLZ have remained broadly steady, with a slightly improved view on the next fiscal year, while estimate revisions for SJM point to a somewhat more cautious outlook.
MDLZ & SJM: A Look at Past-Year Stock Performance
Year to date, shares of Mondelez International have risen 5.1% compared to The J.M. Smucker’s decline of 4.4% and the industry's drop of 4.6%.
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MDLZ & SJM: A Peek Into Stock Valuation
On a forward 12-month P/E basis, both MDLZ and SJM are trading below their respective one-year median multiples, suggesting some moderation in valuation versus their recent historical norms. MDLZ trades at 18.02X, below its median of 19.08X, while SJM trades at 9.53X, below its median of 10.98X and also at a notable discount to the industry average of 13.83X.
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Image Source: Zacks Investment Research
This suggests MDLZ still commands a premium valuation relative to the industry, likely reflecting its stronger global brand portfolio and growth profile, whereas SJM’s steeper discount points to a more cautious market view despite potentially offering deeper value.
MDLZ or SJM: Which Is the Better Bet?
While both companies have solid fundamentals and are navigating similar industry headwinds, Mondelez International appears better positioned right now. Its global scale, stronger brand portfolio and steadier growth profile offer greater visibility, even as it works through near-term cost pressures. In contrast, The J.M. Smucker offers value and improving cash flow but continues to face execution challenges and uneven segment performance. As a result, MDLZ stands out as the better choice at this stage, while SJM still looks more like a recovery story with higher uncertainty.
Both MDLZ and SJM currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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