Analyzing Adecoagro (AGRO) and Fresh Del Monte Produce (FDP)

Adecoagro (NYSE: AGRO) and Fresh Del Monte Produce (NYSE:FDP) are both consumer staples companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitabiliy and dividends.

Dividends

Fresh Del Monte Produce pays an annual dividend of $0.60 per share and has a dividend yield of 1.2%. Adecoagro does not pay a dividend. Fresh Del Monte Produce pays out 16.3% of its earnings in the form of a dividend.

Profitability

This table compares Adecoagro and Fresh Del Monte Produce’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Adecoagro 0.61% 0.83% 0.36%
Fresh Del Monte Produce 4.71% 11.34% 7.88%

Risk & Volatility

Adecoagro has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500. Comparatively, Fresh Del Monte Produce has a beta of 0.4, indicating that its share price is 60% less volatile than the S&P 500.

Insider & Institutional Ownership

57.7% of Adecoagro shares are owned by institutional investors. Comparatively, 67.9% of Fresh Del Monte Produce shares are owned by institutional investors. 36.9% of Fresh Del Monte Produce shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Adecoagro and Fresh Del Monte Produce’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Adecoagro $913.84 million 1.32 $285.23 million $0.04 249.56
Fresh Del Monte Produce $4.03 billion 0.62 $310.40 million $3.67 13.39

Fresh Del Monte Produce has higher revenue and earnings than Adecoagro. Fresh Del Monte Produce is trading at a lower price-to-earnings ratio than Adecoagro, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Adecoagro and Fresh Del Monte Produce, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Adecoagro 0 0 0 0 N/A
Fresh Del Monte Produce 0 0 1 0 3.00

Fresh Del Monte Produce has a consensus price target of $74.00, suggesting a potential upside of 50.59%. Given Fresh Del Monte Produce’s higher possible upside, analysts plainly believe Fresh Del Monte Produce is more favorable than Adecoagro.

Summary

Fresh Del Monte Produce beats Adecoagro on 11 of the 15 factors compared between the two stocks.

Adecoagro Company Profile

Adecoagro S.A. is a holding company. The Company is involved in a range of businesses, including farming crops and other agricultural products, dairy operations, sugar, ethanol and energy production and land transformation. The Company is organized into three main lines of business: farming; land transformation, and sugar, ethanol and energy. Its agricultural activities consist of harvesting certain agricultural products, including crops, rough rice and sugarcane, for sale to third parties and for internal use as inputs in its various manufacturing processes, and producing raw milk. Its manufacturing activities consist of selling manufactured products, including processed rice, sugar, ethanol and energy, among others, and providing services, such as grain warehousing and conditioning and handling and drying services, among others. The Company’s land transformation activities consist of the acquisition of farmlands or businesses with underdeveloped or underutilized agricultural land.

Fresh Del Monte Produce Company Profile

Fresh Del Monte Produce Inc. is a holding company. The Company, through its subsidiaries, is engaged in sourcing, transportation and marketing of fresh and fresh-cut produce together with prepared food products in Europe, Africa and the Middle East. Its operations are aggregated into business segments on the basis of its products: bananas, other fresh produce and prepared food. It sources its fresh produced products, such as bananas, pineapples, melons, tomatoes, grapes, apples, pears, peaches, plums, nectarines, cherries, citrus, avocados, blueberries and kiwi from Central and South America, Africa, the Philippines, North America and Europe. It sources its prepared food products from Africa, Europe and the Middle East. It distributes its products in North America, Europe, Asia, the Middle East, Africa and South America. It markets its products under the DEL MONTE brand, as well as under other brands, including UTC, Rosy, Fruit Express, Just Juice, Fruitini and other regional brands.

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