Head to Head Review: Bunge (BG) & Amira Nature Foods (ANFI)

Amira Nature Foods (NYSE: ANFI) and Bunge (NYSE:BG) are both consumer staples companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, dividends, risk, institutional ownership, analyst recommendations, earnings and profitability.

Dividends

Bunge pays an annual dividend of $1.84 per share and has a dividend yield of 2.6%. Amira Nature Foods does not pay a dividend. Bunge pays out 56.3% of its earnings in the form of a dividend. Bunge has raised its dividend for 16 consecutive years.

Profitability

This table compares Amira Nature Foods and Bunge’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Amira Nature Foods N/A N/A N/A
Bunge 1.06% 6.68% 2.26%

Valuation & Earnings

This table compares Amira Nature Foods and Bunge’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Amira Nature Foods $551.83 million 0.27 $25.08 million N/A N/A
Bunge $42.94 billion 0.23 $745.00 million $3.27 21.33

Bunge has higher revenue and earnings than Amira Nature Foods.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Amira Nature Foods and Bunge, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Amira Nature Foods 0 1 1 0 2.50
Bunge 0 4 4 0 2.50

Amira Nature Foods presently has a consensus price target of $8.00, indicating a potential upside of 97.53%. Bunge has a consensus price target of $81.86, indicating a potential upside of 17.37%. Given Amira Nature Foods’ higher probable upside, equities research analysts clearly believe Amira Nature Foods is more favorable than Bunge.

Volatility & Risk

Amira Nature Foods has a beta of -0.26, meaning that its share price is 126% less volatile than the S&P 500. Comparatively, Bunge has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500.

Institutional and Insider Ownership

13.0% of Amira Nature Foods shares are held by institutional investors. Comparatively, 79.7% of Bunge shares are held by institutional investors. 1.3% of Bunge shares are held 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.

Summary

Bunge beats Amira Nature Foods on 11 of the 14 factors compared between the two stocks.

Amira Nature Foods Company Profile

Amira Nature Foods Ltd is primarily engaged in the business of processing and selling packaged Indian specialty rice, primarily basmati rice and other food products. The Company sells Basmati rice and other specialty rice, under its Amira brand, as well as under other third-party brands. It also sells non-basmati rice. It has developed a line of Amira branded products to complement its packaged rice offerings, including edible oil, snacks, ready-to-heat meals and a line of organic product offerings. It is engaged in the institutional sale of bulk commodities to international and regional trading firms, which includes wheat, barley, legume, maize, sugar, soybean meal, onion, potato, millet and others. Its Amira branded product line includes Amira Pure Basmati Rice, Amira Indian Basmati Rice, Smoked Basmati Rice, Amira Khichdi Rice, Amira Navratan Mix and others. The Company’s third-party branded rice products include Euricom Brown Basmati Rice, Bonne Chance Long Grain Rice and others.

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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