Critical Contrast: FMC (NYSE:FMC) vs. Cresud S.A.C.I.F. y A. (NASDAQ:CRESY)

Cresud S.A.C.I.F. y A. (NASDAQ:CRESYGet Free Report) and FMC (NYSE:FMCGet Free Report) are both small-cap consumer staples companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, earnings, institutional ownership and risk.

Profitability

This table compares Cresud S.A.C.I.F. y A. and FMC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cresud S.A.C.I.F. y A. 17.44% 7.21% 3.09%
FMC -72.93% 10.53% 2.95%

Dividends

Cresud S.A.C.I.F. y A. pays an annual dividend of $0.60 per share and has a dividend yield of 5.2%. FMC pays an annual dividend of $0.32 per share and has a dividend yield of 2.9%. Cresud S.A.C.I.F. y A. pays out 27.0% of its earnings in the form of a dividend. FMC pays out -1.6% 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.

Institutional and Insider Ownership

12.9% of Cresud S.A.C.I.F. y A. shares are owned by institutional investors. Comparatively, 91.9% of FMC shares are owned by institutional investors. 36.2% of Cresud S.A.C.I.F. y A. shares are owned by company insiders. Comparatively, 0.8% of FMC shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings for Cresud S.A.C.I.F. y A. and FMC, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cresud S.A.C.I.F. y A. 0 1 0 0 2.00
FMC 4 8 2 0 1.86

FMC has a consensus target price of $15.38, indicating a potential upside of 38.18%. Given FMC’s higher possible upside, analysts clearly believe FMC is more favorable than Cresud S.A.C.I.F. y A..

Valuation & Earnings

This table compares Cresud S.A.C.I.F. y A. and FMC”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cresud S.A.C.I.F. y A. $1,040.87 billion 0.00 $96.15 million $2.22 5.23
FMC $3.47 billion 0.40 -$2.24 billion ($19.98) -0.56

Cresud S.A.C.I.F. y A. has higher revenue and earnings than FMC. FMC is trading at a lower price-to-earnings ratio than Cresud S.A.C.I.F. y A., indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Cresud S.A.C.I.F. y A. has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500. Comparatively, FMC has a beta of 0.38, indicating that its share price is 62% less volatile than the S&P 500.

Summary

Cresud S.A.C.I.F. y A. beats FMC on 10 of the 16 factors compared between the two stocks.

About Cresud S.A.C.I.F. y A.

(Get Free Report)

Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria, an agricultural company, engages in the production of agricultural commodities in Brazil and other Latin American countries. The company operates through Agricultural Business, and Business Urban Properties and Investments segments. It is also involved in the management, development, and ownership of shopping malls, office buildings, and hotels; sale of grain derivatives, such as flour and oil; production and sale of crops, such as soybean, sugarcane, wheat, corn, oilseed, and sunflower, as well as sorghum and peanuts; and breeding, purchasing, and/or fattening of cattle for sale to slaughterhouses and supermarkets. In addition, it leases its farms to third parties for agriculture, cattle breeding, and seed production; and offers agricultural services. The company was incorporated in 1936 and is headquartered in Buenos Aires, Argentina.

About FMC

(Get Free Report)

FMC Corporation, an agricultural sciences company, provides crop protection, plant health, and professional pest and turf management products. It develops, markets, and sells crop protection chemicals that includes insecticides, herbicides, and fungicides; and biologicals, crop nutrition, and seed treatment products, which are used in agriculture to enhance crop yield and quality by controlling a range of insects, weeds, and diseases, as well as in non-agricultural markets for pest control. The company markets its products through its own sales organization and through alliance partners, independent distributors, and sales representatives. It operates in North America, Latin America, Europe, the Middle East, Africa, and Asia. The company was founded in 1883 and is headquartered in Philadelphia, Pennsylvania.

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