Analyzing FMC (NYSE:FMC) and Farmmi (NASDAQ:FAMI)

FMC (NYSE:FMC) and Farmmi (NASDAQ:FAMI) are both consumer staples companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, earnings, analyst recommendations, valuation, dividends and institutional ownership.

Profitability

This table compares FMC and Farmmi’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FMC	2.42%	9.36%	3.51%
Farmmi	N/A	N/A	N/A

Analyst Ratings

This is a summary of current recommendations and price targets for FMC and Farmmi, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FMC	1	7	5	0	2.31
Farmmi	0	0	0	0	0.00

FMC currently has a consensus target price of $49.58, suggesting a potential upside of 29.36%. Given FMC’s stronger consensus rating and higher possible upside, research analysts clearly believe FMC is more favorable than Farmmi.

Insider and Institutional Ownership

91.9% of FMC shares are owned by institutional investors. Comparatively, 0.3% of Farmmi shares are owned by institutional investors. 0.7% of FMC shares are owned by company insiders. Comparatively, 1.7% of Farmmi shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

FMC has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500. Comparatively, Farmmi has a beta of 1.64, meaning that its share price is 64% more volatile than the S&P 500.

Earnings and Valuation

This table compares FMC and Farmmi”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FMC	$4.13 billion	1.16	$341.10 million	$0.80	47.91
Farmmi	$43.83 million	0.05	-$4.66 million	N/A	N/A

FMC has higher revenue and earnings than Farmmi.

Summary

FMC beats Farmmi on 10 of the 12 factors compared between the two stocks.

About FMC

FMC Corporation, an agricultural sciences company, provides crop protection, plant health, and professional pest and turf management products. It develops, markets, and sells crop protection chemicals that includes insecticides, herbicides, and fungicides; and biologicals, crop nutrition, and seed treatment products, which are used in agriculture to enhance crop yield and quality by controlling a range of insects, weeds, and diseases, as well as in non-agricultural markets for pest control. The company markets its products through its own sales organization and through alliance partners, independent distributors, and sales representatives. It operates in North America, Latin America, Europe, the Middle East, Africa, and Asia. The company was founded in 1883 and is headquartered in Philadelphia, Pennsylvania.

About Farmmi

Farmmi, Inc., through its subsidiaries, engages in processing and sale of agricultural products in China, the United States, Japan, Canada, Europe, Korea, and the Middle East. The company offers Shiitake mushrooms, Mu Er mushrooms, and other edible fungi, such as bamboo fungi, agrocybe aegerila, pleurotus eryngii, grifola frondose, coprinus comatus, and hericium erinaceus, as well as dried edible fungi. It is also involved in trading of cotton, corn, and other agricultural products. The company's products are offered under Lishui Shangeng, Farmmi Liangpin, Forasen, and Puyangtang brands. It offers its products through local distributors to processing manufacturers, supermarkets, restaurants, cafeterias, and local specialty stores. The company was founded in 1994 and is headquartered in Lishui, China.