Analyzing Andersons (NASDAQ:ANDE) and Wilmar International (OTCMKTS:WLMIY)

Wilmar International (OTCMKTS:WLMIY) and Andersons (NASDAQ:ANDE) are both basic materials 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.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Wilmar International and Andersons, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wilmar International	0	0	0	0	0.00
Andersons	0	1	2	0	2.67

Andersons has a consensus target price of $51.67, indicating a potential upside of 42.04%. Given Andersons’ stronger consensus rating and higher probable upside, analysts plainly believe Andersons is more favorable than Wilmar International.

Risk & Volatility

Wilmar International has a beta of 0.46, indicating that its stock price is 54% less volatile than the S&P 500. Comparatively, Andersons has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500.

Valuation & Earnings

This table compares Wilmar International and Andersons”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wilmar International	$67.38 billion	0.21	$1.17 billion	N/A	N/A
Andersons	$11.26 billion	0.11	$114.01 million	$3.17	11.47

Wilmar International has higher revenue and earnings than Andersons.

Institutional & Insider Ownership

87.1% of Andersons shares are held by institutional investors. 4.3% of Andersons 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Wilmar International	N/A	N/A	N/A
Andersons	0.97%	7.35%	3.14%

Dividends

Wilmar International pays an annual dividend of $1.39 per share and has a dividend yield of 6.1%. Andersons pays an annual dividend of $0.78 per share and has a dividend yield of 2.1%. Andersons pays out 24.6% of its earnings in the form of a dividend. Andersons has increased its dividend for 28 consecutive years.

Summary

Andersons beats Wilmar International on 10 of the 15 factors compared between the two stocks.

About Wilmar International

Wilmar International Limited operates as an agribusiness company in Singapore, South East Asia, the People's Republic of China, India, Europe, Australia/New Zealand, Africa, and internationally. The company operates through four segments: Food Products, Feed and Industrial Products, Plantation and Sugar Milling, and Others. The Food Products segment engages in the processing, branding, and distribution of a range of edible food products, including vegetable oils, sugar, flour, rice, noodles, specialty fats, snacks, bakery, and dairy products, as well as ready-to-eat meals and central kitchen products. The Feed and Industrial Products segment is involved in the processing, merchandising, and distribution of products, such as animal feeds, non-edible palm and lauric products, agricultural commodities, oleochemicals, gas oil, and biodiesel. The Plantation and Sugar Milling segment engages in the cultivation and milling of palm oil and sugarcane. The Others segment provides logistics and jetty port services, as well as engages in investment activities. The company was formerly known as Ezyhealth Asia Pacific Ltd and changed its name to Wilmar International Limited in July 2006. Wilmar International Limited is headquartered in Singapore.

About Andersons

The Andersons, Inc. operates in trade, renewables, and nutrient and industrial sectors in the United States, Canada, Mexico, Egypt, Switzerland, and internationally. It operates through three segments: Trade, Renewables, and Nutrient & Industrial. The company’s Trade segment operates grain elevators; stores commodities; and provides grain marketing, risk management, and origination services, as well as sells commodities, such as corn, soybeans, wheat, oats, ethanol, and corn oil. This segment also engages in the commodity merchandising business, as well as offers logistics for physical commodities, such as whole grains, grain products, feed ingredients, domestic fuel products, and other agricultural commodities. Its Renewables segment produces, purchases, and sells ethanol, and co-products, as well as offers facility operations, risk management, and marketing services to the ethanol plants it invests in and operates. The company’s Nutrient & Industrial segment manufactures, distributes, and retails agricultural and related plant nutrients, liquid industrial products, corncob-based products, and pelleted lime and gypsum products, as well as turf fertilizer, pesticide, and herbicide products; and crop nutrients, crop protection chemicals, and seed products, as well as provides application and agronomic services to commercial and family farmers. In addition, this segment produces corncob-based products for laboratory animal bedding and private-label cat litter, as well as absorbents, blast cleaners, carriers, and polishers; professional lawn care products for golf course and turf care markets; fertilizer and weed, and pest control products; dry and liquid agricultural nutrients, pelleted lime, gypsum, and soil amendments; and micronutrients, as well as industrial products comprising nitrogen reagents, calcium nitrate, deicers, and dust abatement products. The Andersons, Inc. was founded in 1947 and is based in Maumee, Ohio.