Financial Analysis: Nomad Foods (NYSE:NOMD) & Bunge Global (NYSE:BG)

Bunge Global (NYSE:BG) and Nomad Foods (NYSE:NOMD) are both consumer staples companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, earnings, profitability, risk and valuation.

Insider & Institutional Ownership

86.2% of Bunge Global shares are owned by institutional investors. Comparatively, 75.3% of Nomad Foods shares are owned by institutional investors. 0.6% of Bunge Global shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings for Bunge Global and Nomad Foods, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bunge Global	0	2	8	1	2.91
Nomad Foods	1	2	3	0	2.33

Bunge Global currently has a consensus price target of $132.67, indicating a potential upside of 7.13%. Nomad Foods has a consensus price target of $13.25, indicating a potential upside of 15.51%. Given Nomad Foods’ higher probable upside, analysts plainly believe Nomad Foods is more favorable than Bunge Global.

Valuation and Earnings

This table compares Bunge Global and Nomad Foods”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bunge Global	$70.33 billion	0.34	$816.00 million	$5.15	24.05
Nomad Foods	$3.43 billion	0.47	$154.66 million	$1.02	11.25

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

Dividends

Bunge Global pays an annual dividend of $2.88 per share and has a dividend yield of 2.3%. Nomad Foods pays an annual dividend of $0.68 per share and has a dividend yield of 5.9%. Bunge Global pays out 55.9% of its earnings in the form of a dividend. Nomad Foods pays out 66.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Nomad Foods has increased its dividend for 2 consecutive years. Nomad Foods is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Bunge Global and Nomad Foods’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bunge Global	1.10%	9.15%	3.43%
Nomad Foods	4.20%	8.88%	3.53%

Risk & Volatility

Bunge Global has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500. Comparatively, Nomad Foods has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500.

Summary

Bunge Global beats Nomad Foods on 11 of the 18 factors compared between the two stocks.

About Bunge Global

Bunge Global SA operates as an agribusiness and food company worldwide. It operates through four segments: Agribusiness, Refined and Specialty Oils, Milling, and Sugar and Bioenergy. The Agribusiness segment purchases, stores, transports, processes, and sells agricultural commodities and commodity products, including oilseeds primarily soybeans, rapeseed, canola, and sunflower seeds, as well as grains comprising wheat and corn; and processes oilseeds into vegetable oils and protein meals. This segment offers its products for animal feed manufacturers, livestock producers, wheat and corn millers, and other oilseed processors, as well as third-party edible oil processing and biofuel companies for biofuel production applications. The Refined and Specialty Oils segment sells packaged and bulk oils and fats that comprise cooking oils, shortenings, margarines, mayonnaise, renewable diesel feedstocks, and other products for baked goods companies, snack food producers, confectioners, restaurant chains, foodservice operators, infant nutrition companies, and other food manufacturers, as well as grocery chains, wholesalers, distributors, and other retailers. This segment also refines and fractionates palm oil, palm kernel oil, coconut oil, and shea butter, and olive oil; and produces specialty ingredients derived from vegetable oils, such as lecithin. The Milling segment provides wheat flours and bakery mixes; corn milling products that comprise dry-milled corn meals and flours, wet-milled masa and flours, and flaking and brewer’s grits, as well as soy-fortified corn meal, corn-soy blends, and other products; whole grain and fiber ingredients; die-cut pellets; and non-GMO products. The Sugar and Bioenergy segment produces sugar and ethanol; and generates electricity from burning sugarcane bagasse. Bunge Global SA was founded in 1818 and is headquartered in Chesterfield, Missouri.

About Nomad Foods

Nomad Foods Limited, together with its subsidiaries, manufactures, markets, and distributes a range of frozen food products in the United Kingdom and internationally. The company offers frozen fish products, including fish fingers, coated fish, and natural fish; ready-to-cook vegetable products, such as peas and spinach; and frozen poultry and meat products comprising nuggets, grills, and burgers. It also provides meal products that include ready-to-cook noodles, pasta, lasagna, pancakes, and other ready-made meals; ice creams, such as in-home and out-of-home ice creams; and other products consisting of soups, pizzas, bakery goods, and meat substitutes. The company sells its products to supermarkets and food retail chains primarily under the Birds Eye, Green Cuisine, iglo, Findus, Aunt Bessie's, Goodfella's, Frikom, Ledo, La Cocinera, and Belviva brand names. Nomad Foods Limited was founded in 2014 and is headquartered in Feltham, the United Kingdom.