Bunge Global (NYSE:BG – Get Free Report) and Nomad Foods (NYSE:NOMD – Get Free Report) are both consumer staples companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, dividends, valuation, analyst recommendations, earnings and institutional ownership.
Analyst Ratings
This is a summary of recent ratings and price targets for Bunge Global and Nomad Foods, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bunge Global | 0 | 3 | 8 | 0 | 2.73 |
| Nomad Foods | 1 | 2 | 3 | 0 | 2.33 |
Bunge Global currently has a consensus target price of $129.33, indicating a potential upside of 5.54%. Nomad Foods has a consensus target price of $13.25, indicating a potential upside of 20.79%. Given Nomad Foods’ higher probable upside, analysts plainly believe Nomad Foods is more favorable than Bunge Global.
Institutional & Insider Ownership
Volatility and Risk
Bunge Global has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500. Comparatively, Nomad Foods has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500.
Profitability
This table compares Bunge Global and Nomad Foods’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Bunge Global | 1.10% | 9.15% | 3.43% |
| Nomad Foods | 4.20% | 8.88% | 3.53% |
Earnings and Valuation
This table compares Bunge Global and Nomad Foods”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bunge Global | $70.33 billion | 0.33 | $816.00 million | $5.15 | 23.79 |
| Nomad Foods | $3.43 billion | 0.45 | $154.66 million | $1.02 | 10.75 |
Bunge Global has higher revenue and earnings than Nomad Foods. Nomad Foods is trading at a lower price-to-earnings ratio than Bunge Global, indicating that it is currently the more affordable of the two stocks.
Dividends
Bunge Global pays an annual dividend of $2.88 per share and has a dividend yield of 2.4%. Nomad Foods pays an annual dividend of $0.68 per share and has a dividend yield of 6.2%. Bunge Global pays out 55.9% of its earnings in the form of a dividend. Nomad Foods pays out 66.7% 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. Nomad Foods has raised its dividend for 2 consecutive years. Nomad Foods is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Bunge Global beats Nomad Foods on 9 of the 17 factors compared between the two stocks.
About Bunge Global
Bunge Global SA operates as an agribusiness and food company worldwide. It operates through four segments: Agribusiness, Refined and Specialty Oils, Milling, and Sugar and Bioenergy. The Agribusiness segment purchases, stores, transports, processes, and sells agricultural commodities and commodity products, including oilseeds primarily soybeans, rapeseed, canola, and sunflower seeds, as well as grains comprising wheat and corn; and processes oilseeds into vegetable oils and protein meals. This segment offers its products for animal feed manufacturers, livestock producers, wheat and corn millers, and other oilseed processors, as well as third-party edible oil processing and biofuel companies for biofuel production applications. The Refined and Specialty Oils segment sells packaged and bulk oils and fats that comprise cooking oils, shortenings, margarines, mayonnaise, renewable diesel feedstocks, and other products for baked goods companies, snack food producers, confectioners, restaurant chains, foodservice operators, infant nutrition companies, and other food manufacturers, as well as grocery chains, wholesalers, distributors, and other retailers. This segment also refines and fractionates palm oil, palm kernel oil, coconut oil, and shea butter, and olive oil; and produces specialty ingredients derived from vegetable oils, such as lecithin. The Milling segment provides wheat flours and bakery mixes; corn milling products that comprise dry-milled corn meals and flours, wet-milled masa and flours, and flaking and brewer’s grits, as well as soy-fortified corn meal, corn-soy blends, and other products; whole grain and fiber ingredients; die-cut pellets; and non-GMO products. The Sugar and Bioenergy segment produces sugar and ethanol; and generates electricity from burning sugarcane bagasse. Bunge Global SA was founded in 1818 and is headquartered in Chesterfield, Missouri.
About Nomad Foods
Nomad Foods Limited, together with its subsidiaries, manufactures, markets, and distributes a range of frozen food products in the United Kingdom and internationally. The company offers frozen fish products, including fish fingers, coated fish, and natural fish; ready-to-cook vegetable products, such as peas and spinach; and frozen poultry and meat products comprising nuggets, grills, and burgers. It also provides meal products that include ready-to-cook noodles, pasta, lasagna, pancakes, and other ready-made meals; ice creams, such as in-home and out-of-home ice creams; and other products consisting of soups, pizzas, bakery goods, and meat substitutes. The company sells its products to supermarkets and food retail chains primarily under the Birds Eye, Green Cuisine, iglo, Findus, Aunt Bessie's, Goodfella's, Frikom, Ledo, La Cocinera, and Belviva brand names. Nomad Foods Limited was founded in 2014 and is headquartered in Feltham, the United Kingdom.
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