Contrasting Fresh Del Monte Produce (NYSE:FDP) & Davis Commodities (NASDAQ:DTCK)

Davis Commodities (NASDAQ:DTCK) and Fresh Del Monte Produce (NYSE:FDP) are both small-cap consumer staples companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, valuation, institutional ownership and risk.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Davis Commodities and Fresh Del Monte Produce, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Davis Commodities	1	0	0	0	1.00
Fresh Del Monte Produce	0	0	1	0	3.00

Valuation and Earnings

This table compares Davis Commodities and Fresh Del Monte Produce”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Davis Commodities	$132.37 million	0.01	-$3.53 million	N/A	N/A
Fresh Del Monte Produce	$4.32 billion	0.43	$90.70 million	$1.88	21.10

Fresh Del Monte Produce has higher revenue and earnings than Davis Commodities.

Profitability

This table compares Davis Commodities and Fresh Del Monte Produce’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Davis Commodities	N/A	N/A	N/A
Fresh Del Monte Produce	2.10%	7.63%	5.01%

Institutional & Insider Ownership

81.8% of Davis Commodities shares are held by institutional investors. Comparatively, 64.8% of Fresh Del Monte Produce shares are held by institutional investors. 31.6% of Fresh Del Monte Produce shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

Davis Commodities has a beta of -0.03, indicating that its stock price is 103% less volatile than the S&P 500. Comparatively, Fresh Del Monte Produce has a beta of 0.28, indicating that its stock price is 72% less volatile than the S&P 500.

Summary

Fresh Del Monte Produce beats Davis Commodities on 10 of the 11 factors compared between the two stocks.

About Davis Commodities

Davis Commodities Limited, an investment holding company, operates as an agricultural commodity trading company in Asia, Africa, and the Middle East. The company trades in agricultural commodities, including sugar, rice, and oil and fat products under the Maxwill and Taffy brands. It also provides warehouse storage and logistic, as well as agency services. Davis Commodities Limited was founded in 1999 and is headquartered in Singapore. The company operates as a subsidiary of Davis & KT Holdings Pte. Ltd.

About Fresh Del Monte Produce

Fresh Del Monte Produce Inc., through its subsidiaries, produces, markets, and distributes fresh and fresh-cut fruits and vegetables in North America, Central America, South America, Europe, the Middle East, Africa, Asia, and internationally. It operates through three segments: Fresh and Value-Added Products, Banana, and Other Products and Services. The company offers pineapples, fresh-cut fruit, fresh-cut vegetables, melons, and vegetables; non-tropical fruits, such as grapes, apples, citrus, blueberries, strawberries, pears, peaches, plums, nectarines, cherries, and kiwis; other fruit and vegetables, and avocados; and prepared fruit and vegetables, juices, other beverages, and meals and snacks. It also engages in the sale of poultry and meat products; and third-party freight services business. The company offers its products under the Del Monte brand, as well as under other brands, such as UTC, Rosy, Just Juice, Fruitini, Pinkglow, Del Monte Zero, Honeyglow, Rubyglow, Honey Miniglow, Bananinis, Mann, Mann’s Logo, Arcadian Harvest, Nourish Bowls, Broccolini, Caulilini, Better Burger Leaf, Romaleaf, and other regional brands. It markets and distributes its products to retail stores, club stores, convenience stores, wholesalers, distributors, and foodservice operators. Fresh Del Monte Produce Inc. was founded in 1886 and is based in George Town, Cayman Islands.