Bunge (BG) vs. Kraft Heinz Foods (HNZ) Head-To-Head Review
Bunge (NYSE: BG) and Kraft Heinz Foods (NYSE:HNZ) are both large-cap food processing – nec companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, valuation, earnings, dividends and profitability.
Insider and Institutional Ownership
79.4% of Bunge shares are owned by institutional investors. 1.3% of Bunge shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This table compares Bunge and Kraft Heinz Foods’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Bunge||$42.94 billion||0.25||$745.00 million||$3.27||23.72|
|Kraft Heinz Foods||N/A||N/A||N/A||$3.26||5.75|
Bunge has higher revenue and earnings than Kraft Heinz Foods. Kraft Heinz Foods is trading at a lower price-to-earnings ratio than Bunge, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings for Bunge and Kraft Heinz Foods, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Kraft Heinz Foods||0||2||1||0||2.33|
Bunge presently has a consensus price target of $81.86, suggesting a potential upside of 5.54%. Kraft Heinz Foods has a consensus price target of $17.65, suggesting a potential downside of 5.87%. Given Bunge’s stronger consensus rating and higher probable upside, analysts plainly believe Bunge is more favorable than Kraft Heinz Foods.
This table compares Bunge and Kraft Heinz Foods’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Kraft Heinz Foods||N/A||N/A||N/A|
Bunge pays an annual dividend of $1.84 per share and has a dividend yield of 2.4%. Kraft Heinz Foods does not pay a dividend. Bunge pays out 56.3% of its earnings in the form of a dividend. Kraft Heinz Foods has raised its dividend for 16 consecutive years.
Bunge beats Kraft Heinz Foods on 12 of the 14 factors compared between the two stocks.
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.
About Kraft Heinz Foods
H. J. Heinz Company, together with its subsidiaries, is engaged in manufacturing and marketing a range of food products throughout the world. The Company’s principal products include ketchup, condiments and sauces, frozen food, soups, beans and pasta meals, infant nutrition and other food products. The Company’s products are manufactured and packaged to provide wholesome foods for consumers, as well as foodservice and institutional customers. The Company manufactures and contracts for the manufacture of its products from a variety of raw food materials. The Company operates in five segments: North American Consumer Products, Europe, Asia/Pacific, U.S. Foodservice and Rest of World. The Company owns or leases office space, warehouses, distribution centers and research and other facilities throughout the world.
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