Bunge Limited (BG) vs. Mondelez International (KFT) Critical Survey
Bunge Limited (NYSE: BG) and Mondelez International (NYSE:KFT) are both basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, valuation, risk, earnings, analyst recommendations, dividends and institutional ownership.
Bunge Limited pays an annual dividend of $1.84 per share and has a dividend yield of 2.6%. Mondelez International does not pay a dividend. Bunge Limited pays out 53.6% of its earnings in the form of a dividend. Bunge Limited has raised its dividend for 15 consecutive years.
Valuation & Earnings
This table compares Bunge Limited and Mondelez International’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Bunge Limited||$45.99 billion||0.21||$1.29 billion||$3.43||20.36|
Bunge Limited has higher revenue and earnings than Mondelez International.
Insider & Institutional Ownership
80.4% of Bunge Limited shares are held by institutional investors. 1.3% of Bunge Limited shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This table compares Bunge Limited and Mondelez International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current recommendations and price targets for Bunge Limited and Mondelez International, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Bunge Limited currently has a consensus target price of $81.86, indicating a potential upside of 17.24%. Given Bunge Limited’s higher possible upside, research analysts clearly believe Bunge Limited is more favorable than Mondelez International.
Bunge Limited beats Mondelez International on 7 of the 11 factors compared between the two stocks.
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.
Mondelez International Company Profile
Mondelez International, Inc. is a snack company. The Company manufactures and markets snack food and beverage products for consumers. It operates through four segments: Latin America, Asia, Middle East, and Africa (AMEA), Europe and North America. As of December 31, 2016, its brands spanned five product categories: Biscuits (including cookies, crackers and salted snacks); Chocolate; Gum and candy; Beverages (including coffee and powdered beverages), and Cheese and grocery. Itsportfolio includes various snack brands, including Nabisco, Oreo, LU and belVita biscuits; Cadbury, Milka, Cadbury Dairy Milk and Toblerone chocolate; Trident gum; Halls candy, and Tang powdered beverages. The Company sells its products to supermarket chains, wholesalers, supercenters, club stores, mass merchandisers, distributors, convenience stores, gasoline stations, drug stores, value stores and retail food outlets. As of December 31, 2016, it sold its products to consumers in approximately 165 countries.
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