Fresh Del Monte Produce (NYSE:FDP) versus Centennial Specialty Foods (OTCMKTS:CHLE) Critical Review

Centennial Specialty Foods (OTCMKTS:CHLE) and Fresh Del Monte Produce (NYSE:FDP) are both consumer staples companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, risk, earnings, institutional ownership, analyst recommendations, profitability and dividends.

Institutional and Insider Ownership

64.8% of Fresh Del Monte Produce shares are owned by institutional investors. 17.2% of Centennial Specialty Foods shares are owned by insiders. Comparatively, 30.6% of Fresh Del Monte Produce shares are owned 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.

Analyst Ratings

This is a summary of current recommendations and price targets for Centennial Specialty Foods and Fresh Del Monte Produce, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Centennial Specialty Foods	0	0	0	0	0.00
Fresh Del Monte Produce	0	1	0	0	2.00

Valuation and Earnings

This table compares Centennial Specialty Foods and Fresh Del Monte Produce”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Centennial Specialty Foods	N/A	N/A	N/A	N/A	N/A
Fresh Del Monte Produce	$4.27 billion	0.34	$90.70 million	$1.45	21.14

Fresh Del Monte Produce has higher revenue and earnings than Centennial Specialty Foods.

Profitability

This table compares Centennial Specialty Foods and Fresh Del Monte Produce’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Centennial Specialty Foods	N/A	N/A	N/A
Fresh Del Monte Produce	1.63%	7.61%	4.89%

Volatility and Risk

Centennial Specialty Foods has a beta of 2.71, suggesting that its stock price is 171% more volatile than the S&P 500. Comparatively, Fresh Del Monte Produce has a beta of 0.22, suggesting that its stock price is 78% less volatile than the S&P 500.

Summary

Fresh Del Monte Produce beats Centennial Specialty Foods on 7 of the 8 factors compared between the two stocks.

About Centennial Specialty Foods

Centennial Specialty Foods Corp. markets, sells, and distributes branded ethnic Southwestern sauces and food products in Colorado. It offers green chile sauces, and chili con carne or chili products. The company’s sauces and chili products come in varieties with pork, chicken, beef, and no meat. Its Ellis products include refried beans, tamale products, chili products, bean products, and Ellis burrito sauce. The company sells its products through grocery stores, superstores, and club stores primarily in Colorado, Arizona, and California. Centennial Specialty Foods Corp. was founded in 2003 and is headquartered in Centennial, Colorado.

About Fresh Del Monte Produce

Fresh Del Monte Produce Inc., through its subsidiaries, produces, markets, and distributes fresh and fresh-cut fruits and vegetables in North America, Central America, South America, Europe, the Middle East, Africa, Asia, and internationally. It operates through three segments: Fresh and Value-Added Products, Banana, and Other Products and Services. The company offers pineapples, fresh-cut fruit, fresh-cut vegetables, melons, and vegetables; non-tropical fruits, such as grapes, apples, citrus, blueberries, strawberries, pears, peaches, plums, nectarines, cherries, and kiwis; other fruit and vegetables, and avocados; and prepared fruit and vegetables, juices, other beverages, and meals and snacks. It also engages in the sale of poultry and meat products; and third-party freight services business. The company offers its products under the Del Monte brand, as well as under other brands, such as UTC, Rosy, Just Juice, Fruitini, Pinkglow, Del Monte Zero, Honeyglow, Rubyglow, Honey Miniglow, Bananinis, Mann, Mann’s Logo, Arcadian Harvest, Nourish Bowls, Broccolini, Caulilini, Better Burger Leaf, Romaleaf, and other regional brands. It markets and distributes its products to retail stores, club stores, convenience stores, wholesalers, distributors, and foodservice operators. Fresh Del Monte Produce Inc. was founded in 1886 and is based in George Town, Cayman Islands.