Financial Review: Pilgrim’s Pride (NASDAQ:PPC) and Bunge Global (NYSE:BG)

Bunge Global (NYSE:BG) and Pilgrim’s Pride (NASDAQ:PPC) are both consumer staples companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.

Profitability

This table compares Bunge Global and Pilgrim’s Pride’s 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%
Pilgrim’s Pride	2.96%	21.70%	7.90%

Risk and Volatility

Bunge Global has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500. Comparatively, Pilgrim’s Pride has a beta of 0.31, meaning that its stock price is 69% less volatile than the S&P 500.

Institutional and Insider Ownership

86.2% of Bunge Global shares are held by institutional investors. Comparatively, 16.6% of Pilgrim’s Pride shares are held by institutional investors. 0.6% of Bunge Global shares are held by insiders. Comparatively, 82.2% of Pilgrim’s Pride shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Bunge Global and Pilgrim’s Pride”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bunge Global	$91.82 billion	0.22	$816.00 million	$5.15	20.03
Pilgrim’s Pride	$18.50 billion	0.36	$1.08 billion	$2.30	12.23

Pilgrim’s Pride has lower revenue, but higher earnings than Bunge Global. Pilgrim’s Pride is trading at a lower price-to-earnings ratio than Bunge Global, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Bunge Global and Pilgrim’s Pride, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bunge Global	0	3	8	0	2.73
Pilgrim’s Pride	1	5	2	0	2.12

Bunge Global presently has a consensus price target of $129.89, suggesting a potential upside of 25.91%. Pilgrim’s Pride has a consensus price target of $36.50, suggesting a potential upside of 29.75%. Given Pilgrim’s Pride’s higher probable upside, analysts clearly believe Pilgrim’s Pride is more favorable than Bunge Global.

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 Pilgrim’s Pride

Pilgrim’s Pride Corp. engages in the production, processing, marketing, and distribution of fresh, frozen and value-added chicken and pork products to retailers, distributors, and foodservice operators. It operates through the following segments: U.S., U.K. and Europe, and Mexico. The company was founded by Lonnie A. Pilgrim and Aubrey Pilgrim on October 2, 1946, and is headquartered in Greeley, CO.