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NEW YORK ( TheStreet) -- Investors can afford to take some short-term pain in order to make longer-term gains, Jim Cramer told "Mad Money" viewers Tuesday. Don't leave the stock market just because of a few down days. "Sometimes the markets need to come down," Cramer explained, but that doesn't mean there aren't ways to make money. Case in point, Apple ( AAPL), a stock Cramer owns for his charitable trust,
Off the ChartsIn the "Off The Charts" segment, Cramer went head to head with colleague Tim Collins over the chart of Monsanto ( MON), the seed and fertilizer giant most poised to benefit from the record-setting drought in the U.S. While shares of Monsanto are sitting just off their 52-week highs, Collins said the daily chart displays a wedge formation that is bullish for the stock. He felt any pullback should be bought aggressively as the stock has solid support at the $81 level.
Battle of the ToymakersIn the battle of the toymakers, who comes out ahead? Cramer pitted the stocks of Hasbro ( HAS) versus Mattel ( MAT) to find out. He said that while these companies seem similar on the surface, under the hood there is a clear winner. Mattel is currently the world's number one toymaker with brands including Barbie, Hot Wheels and American Girl. Hasbro comes in at a solid number two with lucrative toy deals for many of the Marvel Comics series. Both companies have similar valuations -- Hasbro trades at 11.3 times earnings while Mattel trades at 12.7 times -- and similar dividends -- 3.6% for Mattel and 4.1% for Hasbro. Cramer said while it was close, Mattel comes out the winner thanks to its consistent earnings stemming from its girl-oriented franchises. Boys, it turns out, are not a reliable source of earnings, said Cramer, and Hasbro is up against tough comparisons from last year's Transformers movie. Mattel is also a pure play on toys, noted Cramer, while Hasbro has more exposure to games and puzzles, a segment with increasing competition from console gaming and the Web. While both companies delivered upside surprises when they last reported, Mattel's core businesses were strong while Hasbro came in light on revenue. Hasbro also has more exposure to Europe. But while Mattel is the better investment, Cramer said the stock has also had a big run and currently trades just off its 52-week high. He told viewers that Mattel should only be bought on a pullback.
Lightning RoundHere's what Cramer had to say about callers' stocks during the "Lightning Round": Ford Motor ( F): "This is one tough stock to own." Pitney Bowes ( PBI): "There's just nothing good happening there." Costco ( COST): "It's had an amazing run. I don't mind taking it off the table." Kirby ( KEX): "It was a great trade but it's similar to many oil and gas stocks. The turn hasn't happened yet." Tesla Motors ( TSLA): "No. It's very expensive. I have enough problems with blue-chip stocks. I can't afford to speculate." Travelzoo ( TZOO): "No. All these stocks are really high and this is the last one of the group I'd like to own."
Executive DecisionIn the "Executive Decision" segment, Cramer sat down with David Wenner, president and CEO of B&G Foods ( BGS), a company that delivered an earnings beat of 2 cents a share on lighter than expected revenue. Shares of B&G currently yield 3.9%. Wenner said B&G's conservative guidance during its conference call came from the fact that no one is really sure what's going on with the American consumer. He said the packaged-food business has been soft for three quarters in a row, leaving the industry to ask, "Where are the consumers and what are they eating?" However, given the overall weakness, Wenner said he's humbled that B&G is seeing half the declines of other competitors, and the company continues to innovate and build its business. "I'm happy with what we've done," said Wenner. Part of B&G's success has been its Ortega line of Mexican food products. Wenner noted that making tacos at home is a better value than going out and it's something that kids like to eat. Consumers took full advantage of a recent coupon offer, confirming that they're looking for value at every turn. Finally, when asked about acquisitions, Wenner said that B&G is ready for another acquisition, both financially and organizationally. He said B&G's recent acquisition of Mrs. Dash and the Static Guard brands are now fully integrated and he's looking forward to what comes next. Cramer said B&G has an excellent track record, a great dividend and some growth, everything he's looking for in a tough market.