Financial Analysis: Coffee (NASDAQ:JVA) and Bunge Global (NYSE:BG)

Coffee (NASDAQ:JVA) and Bunge Global (NYSE:BG) are both consumer staples companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, dividends, analyst recommendations, profitability and earnings.

Profitability

This table compares Coffee and Bunge Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Coffee	1.53%	5.41%	3.61%
Bunge Global	1.10%	9.15%	3.43%

Dividends

Coffee pays an annual dividend of $0.08 per share and has a dividend yield of 2.3%. Bunge Global pays an annual dividend of $2.88 per share and has a dividend yield of 2.4%. Coffee pays out 28.6% of its earnings in the form of a dividend. Bunge Global pays out 55.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Ratings

This is a summary of recent ratings and price targets for Coffee and Bunge Global, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Coffee	0	2	0	0	2.00
Bunge Global	0	2	8	1	2.91

Coffee presently has a consensus target price of $9.50, suggesting a potential upside of 174.96%. Bunge Global has a consensus target price of $132.67, suggesting a potential upside of 11.33%. Given Coffee’s higher possible upside, research analysts plainly believe Coffee is more favorable than Bunge Global.

Institutional and Insider Ownership

86.2% of Bunge Global shares are held by institutional investors. 22.1% of Coffee shares are held by company insiders. Comparatively, 0.6% of Bunge Global shares are held 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.

Valuation & Earnings

This table compares Coffee and Bunge Global”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Coffee	$99.35 million	0.20	$1.40 million	$0.28	12.34
Bunge Global	$91.82 billion	0.25	$816.00 million	$5.15	23.14

Bunge Global has higher revenue and earnings than Coffee. Coffee is trading at a lower price-to-earnings ratio than Bunge Global, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Coffee has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500. Comparatively, Bunge Global has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500.

Summary

Bunge Global beats Coffee on 11 of the 17 factors compared between the two stocks.

About Coffee

Coffee Holding Co., Inc. engages in manufacturing, roasting, packaging, marketing, and distributing roasted and blended coffees in the United States, Australia, Canada, England, and China. It offers wholesale green coffee products, including unroasted raw beans that are sold to large, medium, and small roasters, as well as coffee shop operators; and roasts, blends, packages, and sells coffee under private labels in cans, brick packages, and instants of various sizes. The company also roasts and blends company label branded coffee to supermarkets, wholesalers, and individually owned stores; and sells tabletop coffee roasting equipment, instant coffees, and tea products for its customers. Its coffee brands include Cafe Caribe, Don Manuel, S&W, Cafe Supremo, Via Roma, Premier Roasters, and Harmony Bay. The company was formerly known as Transpacific International Group Corp and changed its name to Coffee Holding Co., Inc. in April 1998. Coffee Holding Co., Inc. was founded in 1971 and is headquartered in Staten Island, New York.

About Bunge Global

Bunge Global SA operates as an agribusiness and food company worldwide. It operates through four segments: Agribusiness, Refined and Specialty Oils, Milling, and Sugar and Bioenergy. The Agribusiness segment purchases, stores, transports, processes, and sells agricultural commodities and commodity products, including oilseeds primarily soybeans, rapeseed, canola, and sunflower seeds, as well as grains comprising wheat and corn; and processes oilseeds into vegetable oils and protein meals. This segment offers its products for animal feed manufacturers, livestock producers, wheat and corn millers, and other oilseed processors, as well as third-party edible oil processing and biofuel companies for biofuel production applications. The Refined and Specialty Oils segment sells packaged and bulk oils and fats that comprise cooking oils, shortenings, margarines, mayonnaise, renewable diesel feedstocks, and other products for baked goods companies, snack food producers, confectioners, restaurant chains, foodservice operators, infant nutrition companies, and other food manufacturers, as well as grocery chains, wholesalers, distributors, and other retailers. This segment also refines and fractionates palm oil, palm kernel oil, coconut oil, and shea butter, and olive oil; and produces specialty ingredients derived from vegetable oils, such as lecithin. The Milling segment provides wheat flours and bakery mixes; corn milling products that comprise dry-milled corn meals and flours, wet-milled masa and flours, and flaking and brewer’s grits, as well as soy-fortified corn meal, corn-soy blends, and other products; whole grain and fiber ingredients; die-cut pellets; and non-GMO products. The Sugar and Bioenergy segment produces sugar and ethanol; and generates electricity from burning sugarcane bagasse. Bunge Global SA was founded in 1818 and is headquartered in Chesterfield, Missouri.