Analyzing Kraft Foods Group (KRFT) & Bunge Limited (BG)
Kraft Foods Group (NASDAQ: KRFT) and Bunge Limited (NYSE:BG) are both non-cyclical consumer goods & services companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.
This is a breakdown of current ratings and target prices for Kraft Foods Group and Bunge Limited, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Kraft Foods Group||0||0||0||0||N/A|
Bunge Limited has a consensus price target of $81.86, suggesting a potential upside of 17.85%. Given Bunge Limited’s higher possible upside, analysts clearly believe Bunge Limited is more favorable than Kraft Foods Group.
Earnings & Valuation
This table compares Kraft Foods Group and Bunge Limited’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Kraft Foods Group||N/A||N/A||N/A||N/A||N/A|
|Bunge Limited||$45.99 billion||0.21||$1.29 billion||$3.43||20.25|
Bunge Limited has higher revenue and earnings than Kraft Foods Group.
This table compares Kraft Foods Group and Bunge Limited’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Kraft Foods Group||9.86%||38.66%||7.47%|
Bunge Limited pays an annual dividend of $1.84 per share and has a dividend yield of 2.6%. Kraft Foods Group does not pay a dividend. Bunge Limited pays out 53.6% of its earnings in the form of a dividend. Kraft Foods Group has raised its dividend for 15 consecutive years.
Institutional and Insider Ownership
80.3% of Bunge Limited shares are owned by institutional investors. 1.3% of Bunge Limited shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Bunge Limited beats Kraft Foods Group on 6 of the 11 factors compared between the two stocks.
About Kraft Foods Group
Kraft Foods Group, Inc. is a consumer packaged food and beverage company. The Company manufactures and markets food and beverage products, including cheese, meats, refreshment beverages, coffee, packaged dinners, refrigerated meals, snack nuts, dressings, and other grocery products, primarily in the United States and Canada. Its product categories span breakfast, lunch and dinner meal occasions. The Company operates in six segments: Cheese, Refrigerated Meals, Beverages, Meals & Desserts, Enhancers & Snack Nuts and Canada. Its brand portfolio consists of various food brands in North America, including Kraft cheeses, dinners and dressings; Oscar Mayer meats; Philadelphia cream cheese, and over 25 other brands. The Company operates around 36 manufacturing and processing facilities, 34 in the United States and two in Canada. It sells products to supermarket chains, wholesalers, supercenters, club stores, distributors and convenience stores, among others.
About Bunge Limited
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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