Monsanto (MON) & Syngenta AG (SYT) Financial Analysis

Monsanto (NYSE: MON) and Syngenta AG (NYSE:SYT) are both large-cap basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, earnings, profitability, analyst recommendations, risk, institutional ownership and valuation.

Institutional & Insider Ownership

75.3% of Monsanto shares are held by institutional investors. Comparatively, 7.4% of Syngenta AG shares are held by institutional investors. 0.8% of Monsanto shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Monsanto and Syngenta AG, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Monsanto 0 7 8 0 2.53
Syngenta AG 0 2 1 1 2.75

Monsanto currently has a consensus target price of $123.62, suggesting a potential upside of 5.53%. Syngenta AG has a consensus target price of $91.60, suggesting a potential downside of 0.37%. Given Monsanto’s higher possible upside, analysts clearly believe Monsanto is more favorable than Syngenta AG.

Valuation and Earnings

This table compares Monsanto and Syngenta AG’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Monsanto $14.52 billion 3.54 $4.19 billion $4.62 25.36
Syngenta AG $12.62 billion 3.36 $2.54 billion N/A N/A

Monsanto has higher revenue and earnings than Syngenta AG.

Volatility and Risk

Monsanto has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500. Comparatively, Syngenta AG has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500.

Dividends

Monsanto pays an annual dividend of $2.16 per share and has a dividend yield of 1.8%. Syngenta AG does not pay a dividend. Monsanto pays out 46.8% of its earnings in the form of a dividend. Syngenta AG has raised its dividend for 7 consecutive years.

Profitability

This table compares Monsanto and Syngenta AG’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Monsanto 14.11% 45.26% 11.37%
Syngenta AG N/A N/A N/A

Summary

Monsanto beats Syngenta AG on 12 of the 16 factors compared between the two stocks.

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.

Syngenta AG Company Profile

Syngenta AG (Syngenta) is an agribusiness company. The Company operates in the crop protection and seeds business, which is involved in the discovery, development, manufacture and marketing of a range of products designed to improve crop yields and food quality, and in the lawn and garden business, which provides professional growers and consumers with flowers, turf and landscape, and professional pest management products. It operates in four geographic regions: Europe, Africa and Middle East; North America; Latin America, and Asia Pacific. It also operates the Crop Protection and Seeds businesses, and the global Lawn and Garden business. Syngenta has a range of selective herbicides that control grasses and broad-leaved weeds and are applicable to various crops. Syngenta has a range of Fungicides that prevent and cure fungal plant diseases. In addition, Syngenta has a range of biologicals into its portfolio in various countries, including the brands QUANTIS, ISABION and SAKALIA.

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