Head to Head Review: Nutrien (NTR) and Wilmar International (WLMIY)

Nutrien (NYSE: NTR) and Wilmar International (OTCMKTS:WLMIY) are both large-cap basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, analyst recommendations, profitability, institutional ownership and valuation.

Valuation & Earnings

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This table compares Nutrien and Wilmar International’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nutrien $4.55 billion 6.78 $327.00 million $1.38 34.83
Wilmar International $43.85 billion 0.35 $1.22 billion $1.93 12.74

Wilmar International has higher revenue and earnings than Nutrien. Wilmar International is trading at a lower price-to-earnings ratio than Nutrien, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Nutrien and Wilmar International, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nutrien 1 5 9 1 2.63
Wilmar International 0 0 0 0 N/A

Nutrien presently has a consensus target price of $58.31, indicating a potential upside of 21.75%. Given Nutrien’s higher possible upside, research analysts clearly believe Nutrien is more favorable than Wilmar International.

Dividends

Nutrien pays an annual dividend of $1.00 per share and has a dividend yield of 2.1%. Wilmar International pays an annual dividend of $0.45 per share and has a dividend yield of 1.8%. Nutrien pays out 72.7% of its earnings in the form of a dividend. Wilmar International pays out 23.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Volatility & Risk

Nutrien has a beta of 0.46, indicating that its share price is 54% less volatile than the S&P 500. Comparatively, Wilmar International has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500.

Profitability

This table compares Nutrien and Wilmar International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nutrien 7.19% 1.33% 0.65%
Wilmar International 3.67% 6.64% 2.82%

Insider & Institutional Ownership

0.0% of Wilmar International shares are held by institutional investors. 3.1% of Nutrien shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Nutrien Company Profile

Nutrien Ltd. produces and distributes potash, nitrogen, and phosphate products for agricultural, industrial, and feed customers worldwide. It offers potash crop feed, fertilizer, industrial, metal finishing, and purified acid products, as well as blends. The company is also involved in the retail operations that serve growers in seven countries across three continents. Its retail network provides a range of products and services, including micronutrient products, nutritionals, and biologicals; seed solutions; crop protection products and advisory services; application services for the nutrients and crop protection products; and financial credit services. Nutrien Ltd. was founded in 1953 and is headquartered in Saskatoon, Canada.

Wilmar International Company Profile

Wilmar International Limited operates as an agribusiness company in the People's Republic of China and internationally. The company operates through four segments: Tropical Oils, Oilseeds and Grains, Sugar, and Others. It engages in the oil palm cultivation, harvesting, and milling activities that primarily provide crude palm oil and palm kernel; and milling of fresh palm fruit bunches. As of December 31, 2016, the company owned an oil palm plantation covering an area of 241,892 hectares in Indonesia, East Malaysia, and Africa. It is also involved in the processing, merchandising, branding, and distribution of palm oil and laurics related products, including oleochemicals and biodiesel; and oilseeds products, such as soybean, rapeseed, sunflower seed, cottonseed, canola, peanut, corn, and rice bran oil and meal products, as well as rice, flour, wheat bran meal, and bran and pollard to distributors, wholesalers, feed millers, industrial users, and retailers. In addition, the company produces and markets edible oil, rice, flour, grains, and noodles to traditional retail outlets, supermarkets, convenience stores, and hypermarts under its own brands. Further, it engages in the milling, refining, merchandising, branding, and distribution of white sugar, brown sugar, caster sugar, and syrups in bulk and packaged forms; generation and sale of electricity; manufacture and sale of bioethanol, as well as nitrogen, phosphorus, and potassium compound fertilizers; distribution of a range of chemicals and specialty ingredients; and ship-owning, chartering, brokering, and management activities. The company was founded in 1991 and is headquartered in Singapore.

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