Head-To-Head Review: Andersons (NASDAQ:ANDE) and Dundee (OTCMKTS:DDEJF)

Andersons (NASDAQ:ANDE) and Dundee (OTCMKTS:DDEJF) are both small-cap basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.

Earnings & Valuation

This table compares Andersons and Dundee”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Andersons	$11.26 billion	0.11	$114.01 million	$3.17	11.57
Dundee	$51.17 million	3.46	$43.14 million	$0.56	3.54

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

Analyst Recommendations

This is a summary of current ratings and target prices for Andersons and Dundee, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Andersons	0	1	2	0	2.67
Dundee	0	0	0	0	0.00

Andersons presently has a consensus target price of $51.67, suggesting a potential upside of 40.82%. Given Andersons’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Andersons is more favorable than Dundee.

Profitability

This table compares Andersons and Dundee’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Andersons	0.97%	7.35%	3.14%
Dundee	N/A	26.61%	23.95%

Risk & Volatility

Andersons has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500. Comparatively, Dundee has a beta of 0.46, indicating that its stock price is 54% less volatile than the S&P 500.

Institutional & Insider Ownership

87.1% of Andersons shares are held by institutional investors. Comparatively, 3.0% of Dundee shares are held by institutional investors. 4.3% of Andersons shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Andersons beats Dundee on 11 of the 14 factors compared between the two stocks.

About Andersons

The Andersons, Inc. operates in trade, renewables, and nutrient and industrial sectors in the United States, Canada, Mexico, Egypt, Switzerland, and internationally. It operates through three segments: Trade, Renewables, and Nutrient & Industrial. The company’s Trade segment operates grain elevators; stores commodities; and provides grain marketing, risk management, and origination services, as well as sells commodities, such as corn, soybeans, wheat, oats, ethanol, and corn oil. This segment also engages in the commodity merchandising business, as well as offers logistics for physical commodities, such as whole grains, grain products, feed ingredients, domestic fuel products, and other agricultural commodities. Its Renewables segment produces, purchases, and sells ethanol, and co-products, as well as offers facility operations, risk management, and marketing services to the ethanol plants it invests in and operates. The company’s Nutrient & Industrial segment manufactures, distributes, and retails agricultural and related plant nutrients, liquid industrial products, corncob-based products, and pelleted lime and gypsum products, as well as turf fertilizer, pesticide, and herbicide products; and crop nutrients, crop protection chemicals, and seed products, as well as provides application and agronomic services to commercial and family farmers. In addition, this segment produces corncob-based products for laboratory animal bedding and private-label cat litter, as well as absorbents, blast cleaners, carriers, and polishers; professional lawn care products for golf course and turf care markets; fertilizer and weed, and pest control products; dry and liquid agricultural nutrients, pelleted lime, gypsum, and soil amendments; and micronutrients, as well as industrial products comprising nitrogen reagents, calcium nitrate, deicers, and dust abatement products. The Andersons, Inc. was founded in 1947 and is based in Maumee, Ohio.

About Dundee

Dundee Corporation is a publicly owned investment manager. Through its operating subsidiaries, the firm is engaged in diverse business activities in the areas of investment advisory, corporate finance, energy, resources, agriculture, real estate and infrastructure. The Corporation also holds, directly and indirectly, a portfolio of investments mostly in these key areas, as well as other select investments in both publicly listed and private enterprises. Dundee Corporation was formerly known as Dundee Bancorp, Inc. Dundee Corporation was founded in 1984 is based in Toronto, Canada with additional office in Vancouver, Canada.