Bunge Limited (NYSE: BG) is one of 50 public companies in the “Food Processing” industry, but how does it contrast to its peers? We will compare Bunge Limited to similar businesses based on the strength of its risk, profitability, earnings, valuation, dividends, institutional ownership and analyst recommendations.
Institutional and Insider Ownership
80.3% of Bunge Limited shares are held by institutional investors. Comparatively, 63.6% of shares of all “Food Processing” companies are held by institutional investors. 1.3% of Bunge Limited shares are held by company insiders. Comparatively, 12.2% of shares of all “Food Processing” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Bunge Limited pays an annual dividend of $1.84 per share and has a dividend yield of 2.7%. Bunge Limited pays out 53.6% of its earnings in the form of a dividend. As a group, “Food Processing” companies pay a dividend yield of 2.5% and pay out 60.1% of their earnings in the form of a dividend. Bunge Limited has increased its dividend for 15 consecutive years. Bunge Limited is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.
This is a breakdown of recent ratings for Bunge Limited and its peers, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Bunge Limited Competitors||265||1501||1858||53||2.46|
Bunge Limited presently has a consensus target price of $81.86, suggesting a potential upside of 20.64%. As a group, “Food Processing” companies have a potential downside of 2.43%. Given Bunge Limited’s higher probable upside, equities research analysts plainly believe Bunge Limited is more favorable than its peers.
Risk & Volatility
Bunge Limited has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500. Comparatively, Bunge Limited’s peers have a beta of 0.72, suggesting that their average share price is 28% less volatile than the S&P 500.
This table compares Bunge Limited and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Bunge Limited Competitors||4.05%||11.23%||4.71%|
Valuation & Earnings
This table compares Bunge Limited and its peers top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Bunge Limited||$45.99 billion||$1.29 billion||19.78|
|Bunge Limited Competitors||$8.38 billion||$1.05 billion||22.48|
Bunge Limited has higher revenue and earnings than its peers. Bunge Limited is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Bunge Limited beats its peers on 8 of the 15 factors compared.
Bunge Limited Company Profile
Bunge Limited is an agribusiness and food company with integrated operations that stretch from the farm field to consumer foods. The Company operates through five segments: Agribusiness, Edible Oil Products, Milling Products, Sugar and Bioenergy, and Fertilizer. Its Agribusiness segment is an integrated, global business involved in the purchase, storage, transport, processing and sale of agricultural commodities and commodity products. Its edible oil products include packaged and bulk oils, shortenings, margarines, mayonnaise and other products derived from the vegetable oil refining process. Its milling products segment includes the production and sale of a range of wheat flours and bakery mixes. The Company is a producer and exporter of sugar. Through the Company’s operations in Argentina, it produces, blends and distributes a range of nitrogen, phosphate and potassium (NPK) fertilizers, including phosphate-based liquid and solid nitrogen fertilizers.
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