Analyzing Bunge Limited (BG) and Penford Corp (PENX)
Penford Corp (NASDAQ: PENX) and Bunge Limited (NYSE:BG) are both non-cyclical consumer goods & services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, risk, institutional ownership, earnings, profitabiliy, valuation and analyst recommendations.
Institutional & Insider Ownership
81.7% of Bunge Limited shares are owned by institutional investors. 1.3% of Bunge Limited shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Bunge Limited pays an annual dividend of $1.68 per share and has a dividend yield of 2.2%. Penford Corp does not pay a dividend. Bunge Limited pays out 49.0% of its earnings in the form of a dividend. Penford Corp has increased its dividend for 15 consecutive years.
This is a breakdown of current ratings and price targets for Penford Corp and Bunge Limited, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Bunge Limited has a consensus price target of $84.83, suggesting a potential upside of 10.20%. Given Bunge Limited’s higher possible upside, analysts clearly believe Bunge Limited is more favorable than Penford Corp.
Earnings and Valuation
This table compares Penford Corp and Bunge Limited’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Bunge Limited||$45.99 billion||0.24||$1.27 billion||$3.43||22.44|
Bunge Limited has higher revenue and earnings than Penford Corp.
This table compares Penford Corp and Bunge Limited’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Bunge Limited beats Penford Corp on 6 of the 11 factors compared between the two stocks.
About Penford Corp
Penford Corporation (Penford) is a developer, manufacturer and marketer of natural-based ingredient systems for food and industrial applications, including fuel grade ethanol. The Company has research and development capabilities, which are used in understanding the complex chemistry of carbohydrate-based materials and in developing applications to address customer needs. Penford operates in two business segments: Industrial Ingredients and Food Ingredients. Industrial Ingredients segment is a supplier of chemically modified starches to the paper and packaging industries. Industrial Ingredients also produces food grade corn starch for sale by the Company’s Food Ingredients business. Food Ingredients segment is a developer and manufacturer of specialty starches and dextrins to the food manufacturing and food service industries. This business is engaged is in leveraging the inherent characteristics from potato, corn, tapioca and rice to help improve its customers’ product performance.
About Bunge Limited
Bunge Limited is an agribusiness and food company with integrated operations that stretch from the farm field to consumer foods. The Company operates through five segments: Agribusiness, Edible Oil Products, Milling Products, Sugar and Bioenergy, and Fertilizer. Its Agribusiness segment is an integrated, global business involved in the purchase, storage, transport, processing and sale of agricultural commodities and commodity products. Its edible oil products include packaged and bulk oils, shortenings, margarines, mayonnaise and other products derived from the vegetable oil refining process. Its milling products segment includes the production and sale of a range of wheat flours and bakery mixes. The Company is a producer and exporter of sugar. Through the Company’s operations in Argentina, it produces, blends and distributes a range of nitrogen, phosphate and potassium (NPK) fertilizers, including phosphate-based liquid and solid nitrogen fertilizers.
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