Analyzing Mission Produce (NASDAQ:AVO) and Fresh Del Monte Produce (NYSE:FDP)

Mission Produce (NASDAQ:AVO) and Fresh Del Monte Produce (NYSE:FDP) are both small-cap consumer staples companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, earnings, risk, valuation, profitability, institutional ownership and dividends.

Volatility and Risk

Mission Produce has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500. Comparatively, Fresh Del Monte Produce has a beta of 0.41, suggesting that its stock price is 59% less volatile than the S&P 500.

Earnings and Valuation

This table compares Mission Produce and Fresh Del Monte Produce”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mission Produce	$1.23 billion	0.67	$36.70 million	$0.54	21.54
Fresh Del Monte Produce	$4.28 billion	0.38	$142.20 million	$3.12	11.00

Fresh Del Monte Produce has higher revenue and earnings than Mission Produce. Fresh Del Monte Produce is trading at a lower price-to-earnings ratio than Mission Produce, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

63.6% of Mission Produce shares are held by institutional investors. Comparatively, 64.8% of Fresh Del Monte Produce shares are held by institutional investors. 35.4% of Mission Produce shares are held by company insiders. Comparatively, 31.6% of Fresh Del Monte Produce shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Mission Produce and Fresh Del Monte Produce, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mission Produce	0	1	2	1	3.00
Fresh Del Monte Produce	0	0	1	0	3.00

Mission Produce currently has a consensus price target of $17.00, indicating a potential upside of 46.17%. Given Mission Produce’s higher possible upside, equities research analysts plainly believe Mission Produce is more favorable than Fresh Del Monte Produce.

Profitability

This table compares Mission Produce and Fresh Del Monte Produce’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mission Produce	2.73%	7.89%	4.65%
Fresh Del Monte Produce	3.49%	6.84%	4.41%

Summary

Mission Produce beats Fresh Del Monte Produce on 9 of the 14 factors compared between the two stocks.

About Mission Produce

Mission Produce, Inc. engages in the sourcing, farming, packaging, marketing, and distribution of avocados, mangoes, and blueberries to food retailers, distributors, and foodservice customers in the United States and internationally. The company operates through three segments, Marketing and Distribution; International Farming; and Blueberries. It also provides ripening, bagging, custom packing, logistical management, and quality assurance services. In addition, the company offers merchandising and promotional support, and insights on market trends, and training services. Mission Produce, Inc. was founded in 1983 and is headquartered in Oxnard, California.

About Fresh Del Monte Produce

Fresh Del Monte Produce Inc., through its subsidiaries, produces, markets, and distributes fresh and fresh-cut fruits and vegetables in North America, Central America, South America, Europe, the Middle East, Africa, Asia, and internationally. It operates through three segments: Fresh and Value-Added Products, Banana, and Other Products and Services. The company offers pineapples, fresh-cut fruit, fresh-cut vegetables, melons, and vegetables; non-tropical fruits, such as grapes, apples, citrus, blueberries, strawberries, pears, peaches, plums, nectarines, cherries, and kiwis; other fruit and vegetables, and avocados; and prepared fruit and vegetables, juices, other beverages, and meals and snacks. It also engages in the sale of poultry and meat products; and third-party freight services business. The company offers its products under the Del Monte brand, as well as under other brands, such as UTC, Rosy, Just Juice, Fruitini, Pinkglow, Del Monte Zero, Honeyglow, Rubyglow, Honey Miniglow, Bananinis, Mann, Mann’s Logo, Arcadian Harvest, Nourish Bowls, Broccolini, Caulilini, Better Burger Leaf, Romaleaf, and other regional brands. It markets and distributes its products to retail stores, club stores, convenience stores, wholesalers, distributors, and foodservice operators. Fresh Del Monte Produce Inc. was founded in 1886 and is based in George Town, Cayman Islands.