Monsanto (NYSE: MON) is one of 27 publicly-traded companies in the “Agricultural Chemicals” industry, but how does it weigh in compared to its rivals? We will compare Monsanto to similar companies based on the strength of its institutional ownership, earnings, analyst recommendations, valuation, risk, dividends and profitability.

Volatility and Risk

Monsanto has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500. Comparatively, Monsanto’s rivals have a beta of 0.94, suggesting that their average share price is 6% less volatile than the S&P 500.

Insider and Institutional Ownership

74.8% of Monsanto shares are owned by institutional investors. Comparatively, 47.5% of shares of all “Agricultural Chemicals” companies are owned by institutional investors. 0.8% of Monsanto shares are owned by company insiders. Comparatively, 22.4% of shares of all “Agricultural Chemicals” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

Monsanto pays an annual dividend of $2.16 per share and has a dividend yield of 1.8%. Monsanto pays out 46.8% of its earnings in the form of a dividend. As a group, “Agricultural Chemicals” companies pay a dividend yield of 2.9% and pay out 73.1% of their earnings in the form of a dividend. Monsanto has increased its dividend for 7 consecutive years.

Profitability

This table compares Monsanto and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Monsanto 14.11% 45.26% 11.37%
Monsanto Competitors -398.76% -15.17% -9.33%

Earnings and Valuation

This table compares Monsanto and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Monsanto $14.52 billion $4.19 billion 25.42
Monsanto Competitors $3.75 billion $757.16 million 14.31

Monsanto has higher revenue and earnings than its rivals. Monsanto is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a summary of recent ratings and target prices for Monsanto and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Monsanto 0 7 8 0 2.53
Monsanto Competitors 214 816 901 34 2.38

Monsanto currently has a consensus price target of $123.62, indicating a potential upside of 5.26%. As a group, “Agricultural Chemicals” companies have a potential upside of 1.94%. Given Monsanto’s stronger consensus rating and higher possible upside, analysts clearly believe Monsanto is more favorable than its rivals.

Summary

Monsanto beats its rivals on 12 of the 15 factors compared.

Monsanto Company Profile

Monsanto Company (Monsanto), along with its subsidiaries, is a provider of agricultural products for farmers. The Company provides seeds, biotechnology trait products, herbicides and digital agriculture tools to farmers. The Company operates through two segments: Seeds and Genomics, and Agricultural Productivity. Through its Seeds and Genomics segment, the Company produces seed brands, including DEKALB, Asgrow, Deltapine, Seminis and De Ruiter, and it develops biotechnology traits that assist farmers in controlling insects and weeds and digital agriculture to assist farmers in decision-making. The Seeds and Genomics segment offers products, such as Germplasm and Biotechnology traits. Through its Agricultural Productivity segment, the Company manufactures Roundup brand herbicides and other herbicides and provides lawn-and-garden herbicide products for the residential market.

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