Conagra Brands (CAG) & Bunge (BG) Head-To-Head Comparison

Conagra Brands (NYSE: CAG) and Bunge (NYSE:BG) are both large-cap consumer staples companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, valuation, earnings and dividends.

Profitability

This table compares Conagra Brands and Bunge’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Conagra Brands 9.04% 19.58% 7.62%
Bunge 1.06% 6.68% 2.26%

Valuation and Earnings

This table compares Conagra Brands and Bunge’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Conagra Brands $7.83 billion 1.82 $639.30 million $1.67 21.28
Bunge $42.94 billion 0.25 $745.00 million $3.19 23.53

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

Institutional & Insider Ownership

79.6% of Conagra Brands shares are held by institutional investors. Comparatively, 77.3% of Bunge shares are held by institutional investors. 0.8% of Conagra Brands shares are held by company insiders. Comparatively, 1.3% of Bunge shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Conagra Brands and Bunge, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Conagra Brands 0 2 7 0 2.78
Bunge 0 4 4 0 2.50

Conagra Brands presently has a consensus target price of $41.56, indicating a potential upside of 16.93%. Bunge has a consensus target price of $81.00, indicating a potential upside of 7.91%. Given Conagra Brands’ stronger consensus rating and higher probable upside, analysts clearly believe Conagra Brands is more favorable than Bunge.

Risk and Volatility

Conagra Brands has a beta of 0.27, suggesting that its stock price is 73% less volatile than the S&P 500. Comparatively, Bunge has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500.

Dividends

Conagra Brands pays an annual dividend of $0.85 per share and has a dividend yield of 2.4%. Bunge pays an annual dividend of $1.84 per share and has a dividend yield of 2.5%. Conagra Brands pays out 50.9% of its earnings in the form of a dividend. Bunge pays out 57.7% 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. Conagra Brands has raised its dividend for 16 consecutive years.

Summary

Conagra Brands beats Bunge on 10 of the 17 factors compared between the two stocks.

Conagra Brands Company Profile

Conagra Brands, Inc., formerly ConAgra Foods, Inc., operates as a packaged food company. The Company operates through two segments: Consumer Foods and Commercial Foods. The Company sells branded and customized food products, as well as commercially branded foods. It also supplies vegetable, spice and grain products to a range of restaurants, foodservice operators and commercial customers. Conagra Foodservice offers products to restaurants, retailers, commercial customers and other foodservice suppliers. The Company also operates in the countries outside the United States, such as Canada and Mexico. The Company’s brands include Marie Callender’s, Healthy Choice, Slim Jim, Hebrew National, Orville Redenbacher’s, Peter Pan, Reddi-wip, PAM, Snack Pack, Banquet, Chef Boyardee, Egg Beaters, Rosarita, Fleischmann’s and Hunt’s. The Company sells its products in grocery, convenience, mass merchandise and club stores.

Bunge Company Profile

Bunge Limited is an agribusiness and food company with integrated operations that stretch from the farm field to consumer foods. The Company operates through five segments: Agribusiness, Edible Oil Products, Milling Products, Sugar and Bioenergy, and Fertilizer. Its Agribusiness segment is an integrated, global business involved in the purchase, storage, transport, processing and sale of agricultural commodities and commodity products. Its edible oil products include packaged and bulk oils, shortenings, margarines, mayonnaise and other products derived from the vegetable oil refining process. Its milling products segment includes the production and sale of a range of wheat flours and bakery mixes. The Company is a producer and exporter of sugar. Through the Company’s operations in Argentina, it produces, blends and distributes a range of nitrogen, phosphate and potassium (NPK) fertilizers, including phosphate-based liquid and solid nitrogen fertilizers.

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