Bunge Limited (NYSE: BG) is one of 50 publicly-traded companies in the “Food Processing” industry, but how does it compare to its peers? We will compare Bunge Limited to related companies based off the strength of its earnings, dividends, analyst recommendations, valuation, profitability, institutional ownership and risk.

Profitability

This table compares Bunge Limited and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bunge Limited 1.12% 6.65% 2.23%
Bunge Limited Competitors 4.09% 11.51% 4.84%

Dividends

Bunge Limited pays an annual dividend of $1.84 per share and has a dividend yield of 2.5%. Bunge Limited pays out 53.6% of its earnings in the form of a dividend. As a group, “Food Processing” companies pay a dividend yield of 2.4% and pay out 58.4% of their earnings in the form of a dividend. Bunge Limited has increased its dividend for 15 consecutive years. Bunge Limited is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Bunge Limited and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bunge Limited 0 2 4 0 2.67
Bunge Limited Competitors 356 1646 1869 61 2.42

Bunge Limited currently has a consensus target price of $84.83, indicating a potential upside of 13.38%. All “Food Processing” companies have a potential downside of 3.37%. Given Bunge Limited’s stronger consensus rating and higher probable upside, analysts plainly believe Bunge Limited is more favorable than its peers.

Institutional & Insider Ownership

80.4% of Bunge Limited shares are owned by institutional investors. Comparatively, 63.5% of shares of all “Food Processing” companies are owned by institutional investors. 1.3% of Bunge Limited shares are owned by company insiders. Comparatively, 12.2% of shares of all “Food Processing” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Bunge Limited has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500. Comparatively, Bunge Limited’s peers have a beta of 0.71, indicating that their average stock price is 29% less volatile than the S&P 500.

Earnings & Valuation

This table compares Bunge Limited and its peers gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Bunge Limited $45.99 billion $1.29 billion 21.81
Bunge Limited Competitors $8.38 billion $1.04 billion 22.45

Bunge Limited has higher revenue and earnings than its peers. Bunge Limited is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently the more affordable than other companies in its industry.

Summary

Bunge Limited beats its peers on 10 of the 15 factors compared.

Bunge Limited Company Profile

Bunge Limited is an agribusiness and food company with integrated operations that stretch from the farm field to consumer foods. The Company operates through five segments: Agribusiness, Edible Oil Products, Milling Products, Sugar and Bioenergy, and Fertilizer. Its Agribusiness segment is an integrated, global business involved in the purchase, storage, transport, processing and sale of agricultural commodities and commodity products. Its edible oil products include packaged and bulk oils, shortenings, margarines, mayonnaise and other products derived from the vegetable oil refining process. Its milling products segment includes the production and sale of a range of wheat flours and bakery mixes. The Company is a producer and exporter of sugar. Through the Company’s operations in Argentina, it produces, blends and distributes a range of nitrogen, phosphate and potassium (NPK) fertilizers, including phosphate-based liquid and solid nitrogen fertilizers.

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