Contrasting SunOpta (STKL) and Bunge Limited (BG)

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

Institutional & Insider Ownership

81.9% of SunOpta shares are owned by institutional investors. Comparatively, 80.3% of Bunge Limited shares are owned by institutional investors. 1.9% of SunOpta shares are owned by insiders. Comparatively, 1.3% of Bunge Limited shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Dividends

Bunge Limited pays an annual dividend of $1.84 per share and has a dividend yield of 2.6%. SunOpta does not pay a dividend. Bunge Limited pays out 53.6% of its earnings in the form of a dividend. SunOpta has raised its dividend for 15 consecutive years.

Analyst Ratings

This is a summary of current recommendations and price targets for SunOpta and Bunge Limited, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SunOpta 0 2 3 0 2.60
Bunge Limited 0 5 3 0 2.38

SunOpta presently has a consensus price target of $9.33, suggesting a potential downside of 0.71%. Bunge Limited has a consensus price target of $81.86, suggesting a potential upside of 14.95%. Given Bunge Limited’s higher probable upside, analysts clearly believe Bunge Limited is more favorable than SunOpta.

Risk and Volatility

SunOpta has a beta of 1.75, meaning that its stock price is 75% more volatile than the S&P 500. Comparatively, Bunge Limited has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
SunOpta $1.31 billion 0.62 $70.04 million ($0.64) -14.69
Bunge Limited $45.99 billion 0.22 $1.29 billion $3.43 20.76

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

Profitability

This table compares SunOpta and Bunge Limited’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SunOpta -3.70% -0.70% -0.23%
Bunge Limited 1.12% 6.65% 2.23%

Summary

Bunge Limited beats SunOpta on 8 of the 15 factors compared between the two stocks.

SunOpta Company Profile

Sunopta Inc is a Canada-based company, which operates businesses focused on a healthy products portfolio. It operates through the following segments: Global Ingredients and Consumer Products. The Global Ingredients segment aggregates its North American and international raw material sourcing and supply operating segments focused on the procurement, processing and sale of specialty and organic grains, seeds, fruits, grain- and cocoa-based ingredients, and other commodities. The Consumer Products segment provides healthy and organic food products that are consumer-packaged to retailers, foodservice distributors and food manufacturers with a range of branded and private label products. It is focused on sourcing non-genetically modified (non-GMO) and organic ingredients, and manufacturing healthy food and beverage products. It manufactures packaged products focused on the healthy beverage, healthy fruit and healthy snack categories.

Bunge Limited 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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