Head-To-Head Survey: Dean Foods (DF) & Bunge (BG)
Dean Foods (NYSE: DF) and Bunge (NYSE:BG) are both consumer staples companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, valuation, institutional ownership, profitability, earnings and dividends.
This is a breakdown of current ratings and recommmendations for Dean Foods and Bunge, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Dean Foods currently has a consensus target price of $13.06, indicating a potential upside of 13.23%. Bunge has a consensus target price of $81.86, indicating a potential upside of 23.91%. Given Bunge’s stronger consensus rating and higher probable upside, analysts plainly believe Bunge is more favorable than Dean Foods.
Risk & Volatility
Dean Foods has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500. Comparatively, Bunge has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500.
Earnings and Valuation
This table compares Dean Foods and Bunge’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Dean Foods||$7.71 billion||0.14||$119.92 million||$0.46||25.07|
|Bunge||$42.94 billion||0.22||$745.00 million||$3.19||20.71|
Bunge has higher revenue and earnings than Dean Foods. Bunge is trading at a lower price-to-earnings ratio than Dean Foods, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
94.2% of Dean Foods shares are held by institutional investors. Comparatively, 79.9% of Bunge shares are held by institutional investors. 1.2% of Dean Foods shares are held by company insiders. Comparatively, 1.3% of Bunge shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This table compares Dean Foods and Bunge’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Dean Foods pays an annual dividend of $0.36 per share and has a dividend yield of 3.1%. Bunge pays an annual dividend of $1.84 per share and has a dividend yield of 2.8%. Dean Foods pays out 78.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Bunge pays out 57.7% of its earnings in the form of a dividend. Bunge has increased its dividend for 15 consecutive years.
Bunge beats Dean Foods on 12 of the 16 factors compared between the two stocks.
About Dean Foods
Dean Foods Company is a food and beverage company. The Company processes and distributes fluid milk, and other dairy and dairy case products in the United States. It is engaged in manufacturing, marketing, selling and distributing a range of branded and private label dairy and dairy case products. It offers branded and private label dairy case products, including fluid milk, ice cream, cultured dairy products, creamers, ice cream mix and other dairy products to retailers, distributors, foodservice outlets, educational institutions and governmental entities across the United States. It also offers juices, teas and bottled water. As of December 31, 2016, the Company had over 50 national, regional and local dairy brands, as well as private labels. As of December 31, 2016, the Company’s national, local and regional licensed brands included Alta Dena, Hygeia, PET, Arctic Splash, Jilbert, Pog, Barbers Dairy, Purity, Berkeley Farms, Land-O-Sun & design and ReadyLeaf, Broughton.
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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