Andersons (NASDAQ:ANDE) and Wal-Mart de Mexico SAB de CV (OTCMKTS:WMMVY) Critical Contrast

Wal-Mart de Mexico SAB de CV (OTCMKTS:WMMVY) and Andersons (NASDAQ:ANDE) are both consumer staples companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, dividends, valuation, analyst recommendations, earnings, profitability and institutional ownership.

Risk and Volatility

Wal-Mart de Mexico SAB de CV has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500. Comparatively, Andersons has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500.

Dividends

Wal-Mart de Mexico SAB de CV pays an annual dividend of $0.80 per share and has a dividend yield of 2.9%. Andersons pays an annual dividend of $0.80 per share and has a dividend yield of 1.1%. Wal-Mart de Mexico SAB de CV pays out 50.0% of its earnings in the form of a dividend. Andersons pays out 15.4% 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. Andersons has increased its dividend for 28 consecutive years.

Earnings and Valuation

This table compares Wal-Mart de Mexico SAB de CV and Andersons”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wal-Mart de Mexico SAB de CV	$52.76 billion	0.90	$2.60 billion	$1.60	17.25
Andersons	$10.94 billion	0.22	$95.71 million	$5.18	13.69

Wal-Mart de Mexico SAB de CV has higher revenue and earnings than Andersons. Andersons is trading at a lower price-to-earnings ratio than Wal-Mart de Mexico SAB de CV, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Wal-Mart de Mexico SAB de CV and Andersons’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Wal-Mart de Mexico SAB de CV	4.90%	21.23%	10.12%
Andersons	1.62%	16.23%	5.84%

Analyst Recommendations

This is a summary of recent ratings for Wal-Mart de Mexico SAB de CV and Andersons, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wal-Mart de Mexico SAB de CV	1	2	0	0	1.67
Andersons	0	0	4	1	3.20

Andersons has a consensus target price of $95.00, suggesting a potential upside of 33.95%. Given Andersons’ stronger consensus rating and higher probable upside, analysts clearly believe Andersons is more favorable than Wal-Mart de Mexico SAB de CV.

Institutional and Insider Ownership

87.1% of Andersons shares are held by institutional investors. 4.3% of Andersons shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Andersons beats Wal-Mart de Mexico SAB de CV on 9 of the 17 factors compared between the two stocks.

About Wal-Mart de Mexico SAB de CV

Wal-Mart de México, S.A.B. de C.V. owns and operates self-service stores in Mexico and Central America. The company operates discount warehouses and stores, hypermarkets, supermarkets, and membership self-service wholesale stores. It operates Bodega Aurrerá discount stores, Walmart hypermarkets, Walmart Express supermarkets, and Sam’s Club membership self-service wholesale stores. The company operates Despensa Familiar and Palí discount stores; Paiz, La Despensa de Don Juan, La Unión, and Más x Menos supermarkets; Bodegas, Maxi Bodega, and Maxi Palí stores; and Walmart hypermarkets in Costa Rica, Guatemala, Honduras, Nicaragua, and El Salvador. In addition, it imports and sells goods; develops properties; and manages real estate companies. The company was founded in 1958 and is headquartered in Mexico City, Mexico. Wal-Mart de México, S.A.B. de C.V. operates as a subsidiary of Intersalt, S. De R.l. De C.v.

About Andersons

The Andersons, Inc. operates in trade, renewables, and nutrient and industrial sectors in the United States, Canada, Mexico, Egypt, Switzerland, and internationally. It operates through three segments: Trade, Renewables, and Nutrient & Industrial. The company’s Trade segment operates grain elevators; stores commodities; and provides grain marketing, risk management, and origination services, as well as sells commodities, such as corn, soybeans, wheat, oats, ethanol, and corn oil. This segment also engages in the commodity merchandising business, as well as offers logistics for physical commodities, such as whole grains, grain products, feed ingredients, domestic fuel products, and other agricultural commodities. Its Renewables segment produces, purchases, and sells ethanol, and co-products, as well as offers facility operations, risk management, and marketing services to the ethanol plants it invests in and operates. The company’s Nutrient & Industrial segment manufactures, distributes, and retails agricultural and related plant nutrients, liquid industrial products, corncob-based products, and pelleted lime and gypsum products, as well as turf fertilizer, pesticide, and herbicide products; and crop nutrients, crop protection chemicals, and seed products, as well as provides application and agronomic services to commercial and family farmers. In addition, this segment produces corncob-based products for laboratory animal bedding and private-label cat litter, as well as absorbents, blast cleaners, carriers, and polishers; professional lawn care products for golf course and turf care markets; fertilizer and weed, and pest control products; dry and liquid agricultural nutrients, pelleted lime, gypsum, and soil amendments; and micronutrients, as well as industrial products comprising nitrogen reagents, calcium nitrate, deicers, and dust abatement products. The Andersons, Inc. was founded in 1947 and is based in Maumee, Ohio.