Fresh Del Monte Produce (NYSE: FDP) and Limoneira (NASDAQ:LMNR) are both consumer staples companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, institutional ownership, valuation and dividends.
Risk and Volatility
Fresh Del Monte Produce has a beta of 0.44, meaning that its share price is 56% less volatile than the S&P 500. Comparatively, Limoneira has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500.
Fresh Del Monte Produce pays an annual dividend of $0.60 per share and has a dividend yield of 1.2%. Limoneira pays an annual dividend of $0.25 per share and has a dividend yield of 1.1%. Limoneira pays out 59.5% of its earnings in the form of a dividend. Fresh Del Monte Produce has raised its dividend for 2 consecutive years. Fresh Del Monte Produce is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Fresh Del Monte Produce and Limoneira’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Fresh Del Monte Produce||2.96%||6.70%||4.51%|
Earnings and Valuation
This table compares Fresh Del Monte Produce and Limoneira’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Fresh Del Monte Produce||$4.09 billion||0.59||$120.80 million||N/A||N/A|
|Limoneira||$121.31 million||2.84||$6.59 million||$0.42||56.52|
Fresh Del Monte Produce has higher revenue and earnings than Limoneira.
Insider and Institutional Ownership
65.7% of Fresh Del Monte Produce shares are owned by institutional investors. Comparatively, 27.9% of Limoneira shares are owned by institutional investors. 39.0% of Fresh Del Monte Produce shares are owned by insiders. Comparatively, 4.5% of Limoneira shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This is a breakdown of recent ratings for Fresh Del Monte Produce and Limoneira, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Fresh Del Monte Produce||0||0||0||0||N/A|
Limoneira has a consensus price target of $28.00, suggesting a potential upside of 17.94%. Given Limoneira’s higher possible upside, analysts clearly believe Limoneira is more favorable than Fresh Del Monte Produce.
Fresh Del Monte Produce beats Limoneira on 9 of the 15 factors compared between the two stocks.
About Fresh Del Monte Produce
Fresh Del Monte Produce Inc., through its subsidiaries, produces, markets, and distributes fresh and fresh-cut fruits and vegetables worldwide. It offers fresh produce products consisting of bananas, pineapples, melons, tomatoes, grapes, apples, pears, peaches, plums, nectarines, cherries, citrus, avocados, blueberries, strawberries, and kiwi; various vegetables, including potatoes, onions, bell peppers, and cucumbers; and various other fruits, such as plantains and mangos. The company also produces and distributes prepared fruits and vegetables, juices, beverages, snacks, poultry, and meat products. In addition, it engages in ocean freight business; and manufacturing plastic and box products, such as bins, trays, bags, and boxes. The company offers its products under the DEL MONTE brand, as well as under other brands, such as UTC, Rosy, Fruit Express, Just Juice, Fruitini, and other regional brands. It markets and distributes its products to retail stores, club stores, wholesalers, distributors, and foodservice operators. Fresh Del Monte Produce Inc. was founded in 1886 and is headquartered in Coral Gables, Florida.
Limoneira Company operates as an agribusiness and real estate development company in the United States and internationally. The company operates through six segments: Fresh Lemons, Lemon Packing, Avocados, Other Agribusiness, Rental Operations, and Real Estate Development. The Fresh Lemons segment markets and sells lemons directly to food service, wholesale, and retail customers. It has approximately 4,800 acres of lemons. The Lemon Packing segment engages in lemon packing, and shipping and handling activities. This segment also processes, packs, and sells lemons grown by others. The Avocados segment grows avocados. This segment has approximately 900 acres of avocados. The Other Agribusiness segment grows oranges and specialty citrus; and other crops, including Moro blood oranges, Cara Cara oranges, Minneola tangelos, Star Ruby grapefruit, pummelos, pistachios, and wine grapes. This segment has approximately 1,500 acres of oranges; and approximately 1,000 acres of specialty citrus and other crops. The Rental Operations segment owns and maintains approximately 245 residential housing units; and commercial properties, such as office buildings and a multi-use facility, as well as leases approximately 500 acres of its land to third-party agricultural tenants. It is also involved in organic recycling operations. The Real Estate Development segment develops parcels, multi-family housing, and single-family homes. The company has its agricultural plantings in Ventura, Tulare, San Bernardino, and San Luis Obispo counties in California; Yuma county in Arizona; and La Serena, Chile. Limoneira Company markets and sells its lemons directly to food service, wholesale, and retail customers; avocados to a packing and marketing company; oranges, specialty citrus, and other crops through Sunkist and other packinghouses; and wine grapes to wine producers. The company was founded in 1893 and is headquartered in Santa Paula, California.
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