Analyzing Adecoagro (NYSE:AGRO) and CHS (NASDAQ:CHSCP)

Adecoagro (NYSE:AGRO) and CHS (NASDAQ:CHSCP) are both consumer staples companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, institutional ownership, earnings and risk.

Earnings & Valuation

This table compares Adecoagro and CHS”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Adecoagro	$1.52 billion	0.55	$92.34 million	$0.23	36.15
CHS	$35.46 billion	N/A	$597.92 million	N/A	N/A

CHS has higher revenue and earnings than Adecoagro.

Insider & Institutional Ownership

45.3% of Adecoagro shares are owned by institutional investors. 2.3% of CHS shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Adecoagro and CHS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Adecoagro	1.67%	3.09%	1.32%
CHS	1.69%	6.96%	3.06%

Analyst Ratings

This is a summary of current recommendations for Adecoagro and CHS, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Adecoagro	4	1	0	0	1.20
CHS	0	0	0	0	0.00

Adecoagro presently has a consensus target price of $8.83, suggesting a potential upside of 6.13%. Given Adecoagro’s stronger consensus rating and higher possible upside, analysts plainly believe Adecoagro is more favorable than CHS.

Volatility & Risk

Adecoagro has a beta of 0.44, suggesting that its stock price is 56% less volatile than the S&P 500. Comparatively, CHS has a beta of 0.26, suggesting that its stock price is 74% less volatile than the S&P 500.

Summary

CHS beats Adecoagro on 6 of the 10 factors compared between the two stocks.

About Adecoagro

Adecoagro S.A. operates as an agro-industrial company in South America. The company mainly operates through three segments: Farming; Sugar, Ethanol and Energy; and Land Transformation. It engages in farming crops, rice and other agricultural products, dairy operations, and land transformation activities, as well as sugar, ethanol, and energy production activities. The company is involved in the planting, harvesting, and sale of grains, oilseeds, and fibers, including wheat, corn, soybeans, peanuts, cotton, sunflowers, and others; provision of grain warehousing/conditioning, handling, and drying services to third parties; and purchase and sale of crops produced by third parties. It also plants, harvests, processes, and markets rice; and produces and sells raw milk, UHT, cheese, and powder milk. In addition, the company engages in the cultivating and transforming of sugarcane into ethanol, sugar, and electricity. Further, it is involved in the identification and acquisition of underdeveloped and undermanaged farmland, and the realization of value through the strategic disposition of assets. Adecoagro S.A. was founded in 2002 and is based in Luxembourg, Luxembourg.

About CHS

CHS Inc., an integrated agricultural company, engages in the provision of grains, food, and energy resources to businesses and consumers worldwide. It is involved in the operation of petroleum refineries and pipelines; the supply, marketing, and distribution of refined fuels; the blending, sale, and distribution of lubricants; and the supply of propane, asphalt, and other natural gas liquids. The company also processes and sells crude oil into refined petroleum products under the Cenex brand name to member cooperatives and other independent retailers through a network of approximately 1,500 sites and provides transportation services. In addition, it processes and markets grains and oilseeds and offers seeds, crop nutrients, crop protection products, animal feed, animal health products, refined and renewable fuels, as well as refined oils, meal, soy flour, and processed sunflower products. Additionally, it produces and distributes edible oil-based products. CHS Inc. was formerly known as Cenex Harvest States Cooperatives and changed its name to CHS Inc. in August 2003. The company was incorporated in 1936 and is based in Inver Grove Heights, Minnesota.