Reviewing WhiteWave Foods (WWAV) & Bunge (BG)

WhiteWave Foods (NYSE: WWAV) and Bunge (NYSE:BG) are both non-cyclical consumer goods & services companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.

Analyst Ratings

This is a breakdown of current ratings and price targets for WhiteWave Foods and Bunge, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WhiteWave Foods 0 1 0 0 2.00
Bunge 0 4 4 0 2.50

WhiteWave Foods presently has a consensus target price of $56.00, indicating a potential downside of 0.43%. Bunge has a consensus target price of $81.00, indicating a potential downside of 0.98%. Given WhiteWave Foods’ higher probable upside, analysts plainly believe WhiteWave Foods is more favorable than Bunge.

Profitability

This table compares WhiteWave Foods and Bunge’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
WhiteWave Foods 6.21% 17.51% 5.92%
Bunge 1.06% 6.68% 2.26%

Insider and Institutional Ownership

80.6% of WhiteWave Foods shares are held by institutional investors. Comparatively, 79.4% of Bunge shares are held by institutional investors. 6.2% of WhiteWave Foods shares are held by company insiders. Comparatively, 1.3% of Bunge shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

Bunge pays an annual dividend of $1.84 per share and has a dividend yield of 2.2%. WhiteWave Foods does not pay a dividend. Bunge pays out 56.3% of its earnings in the form of a dividend. WhiteWave Foods has increased its dividend for 16 consecutive years.

Valuation & Earnings

This table compares WhiteWave Foods and Bunge’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
WhiteWave Foods N/A N/A N/A $1.19 47.26
Bunge $42.94 billion 0.27 $745.00 million $3.27 25.02

Bunge has higher revenue and earnings than WhiteWave Foods. Bunge is trading at a lower price-to-earnings ratio than WhiteWave Foods, indicating that it is currently the more affordable of the two stocks.

Summary

WhiteWave Foods beats Bunge on 9 of the 14 factors compared between the two stocks.

WhiteWave Foods Company Profile

The WhiteWave Foods Company is a consumer packaged food and beverage company. The Company manufactures, markets, distributes and sells branded plant-based foods and beverages, coffee creamers and beverages, dairy products and organic produce. It operates through two segments: Americas Foods & Beverages and Europe Foods & Beverages. The Americas Foods & Beverages segment includes plant-based foods and beverages, including its Silk and So Delicious branded beverages, such as soymilk, almondmilk, coconutmilk and cashewmilk, ice cream and frozen products, and plant-based yogurts, and Vega plant-based products. The Europe Foods & Beverages segment includes plant-based foods and beverages, such as its Alpro and Provamel brand beverages using soy, almond, coconut, hazelnut, rice and oat and other plant-based ingredients, and plant-based alternatives to yogurt, culinary creams, desserts and margarine. It sells products primarily in North America, Europe and through a joint venture in China.

Bunge 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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