Reviewing Pilgrim’s Pride (NASDAQ:PPC) & Bunge Global (NYSE:BG)

Pilgrim’s Pride (NASDAQ:PPC) and Bunge Global (NYSE:BG) are both consumer staples companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, profitability, institutional ownership, valuation, dividends, analyst recommendations and risk.

Risk & Volatility

Pilgrim’s Pride has a beta of 0.31, suggesting that its share price is 69% less volatile than the S&P 500. Comparatively, Bunge Global has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500.

Earnings & Valuation

This table compares Pilgrim’s Pride and Bunge Global”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pilgrim’s Pride	$18.50 billion	0.36	$1.08 billion	$2.30	12.21
Bunge Global	$70.33 billion	0.28	$816.00 million	$5.15	20.03

Pilgrim’s Pride has higher earnings, but lower revenue than Bunge Global. Pilgrim’s Pride is trading at a lower price-to-earnings ratio than Bunge Global, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Pilgrim’s Pride and Bunge Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pilgrim’s Pride	2.96%	21.70%	7.90%
Bunge Global	1.10%	9.15%	3.43%

Analyst Recommendations

This is a breakdown of recent ratings for Pilgrim’s Pride and Bunge Global, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pilgrim’s Pride	1	5	2	0	2.12
Bunge Global	0	3	8	0	2.73

Pilgrim’s Pride currently has a consensus target price of $36.50, indicating a potential upside of 29.94%. Bunge Global has a consensus target price of $129.89, indicating a potential upside of 25.90%. Given Pilgrim’s Pride’s higher probable upside, analysts plainly believe Pilgrim’s Pride is more favorable than Bunge Global.

Institutional and Insider Ownership

16.6% of Pilgrim’s Pride shares are owned by institutional investors. Comparatively, 86.2% of Bunge Global shares are owned by institutional investors. 82.2% of Pilgrim’s Pride shares are owned by insiders. Comparatively, 0.6% of Bunge Global shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

About Pilgrim’s Pride

Pilgrim’s Pride Corp. engages in the production, processing, marketing, and distribution of fresh, frozen and value-added chicken and pork products to retailers, distributors, and foodservice operators. It operates through the following segments: U.S., U.K. and Europe, and Mexico. The company was founded by Lonnie A. Pilgrim and Aubrey Pilgrim on October 2, 1946, and is headquartered in Greeley, CO.

About Bunge Global

Bunge Global SA operates as an agribusiness and food company worldwide. It operates through four segments: Agribusiness, Refined and Specialty Oils, Milling, and Sugar and Bioenergy. The Agribusiness segment purchases, stores, transports, processes, and sells agricultural commodities and commodity products, including oilseeds primarily soybeans, rapeseed, canola, and sunflower seeds, as well as grains comprising wheat and corn; and processes oilseeds into vegetable oils and protein meals. This segment offers its products for animal feed manufacturers, livestock producers, wheat and corn millers, and other oilseed processors, as well as third-party edible oil processing and biofuel companies for biofuel production applications. The Refined and Specialty Oils segment sells packaged and bulk oils and fats that comprise cooking oils, shortenings, margarines, mayonnaise, renewable diesel feedstocks, and other products for baked goods companies, snack food producers, confectioners, restaurant chains, foodservice operators, infant nutrition companies, and other food manufacturers, as well as grocery chains, wholesalers, distributors, and other retailers. This segment also refines and fractionates palm oil, palm kernel oil, coconut oil, and shea butter, and olive oil; and produces specialty ingredients derived from vegetable oils, such as lecithin. The Milling segment provides wheat flours and bakery mixes; corn milling products that comprise dry-milled corn meals and flours, wet-milled masa and flours, and flaking and brewer’s grits, as well as soy-fortified corn meal, corn-soy blends, and other products; whole grain and fiber ingredients; die-cut pellets; and non-GMO products. The Sugar and Bioenergy segment produces sugar and ethanol; and generates electricity from burning sugarcane bagasse. Bunge Global SA was founded in 1818 and is headquartered in Chesterfield, Missouri.