Analyzing Andersons (NASDAQ:ANDE) and Wilmar International (OTCMKTS:WLMIY)

Andersons (NASDAQ:ANDE) and Wilmar International (OTCMKTS:WLMIY) are both basic materials companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, risk, earnings, dividends and institutional ownership.

Insider and Institutional 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 large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Andersons has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500. Comparatively, Wilmar International has a beta of 0.46, suggesting that its share price is 54% less volatile than the S&P 500.

Dividends

Andersons pays an annual dividend of $0.78 per share and has a dividend yield of 2.1%. Wilmar International pays an annual dividend of $1.39 per share and has a dividend yield of 5.9%. Andersons pays out 24.6% of its earnings in the form of a dividend. Andersons has increased its dividend for 28 consecutive years.

Analyst Ratings

This is a breakdown of current recommendations for Andersons and Wilmar International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Andersons	0	1	2	0	2.67
Wilmar International	0	0	0	0	0.00

Andersons presently has a consensus price target of $51.67, indicating a potential upside of 38.96%. Given Andersons’ stronger consensus rating and higher probable upside, research analysts clearly believe Andersons is more favorable than Wilmar International.

Valuation & Earnings

This table compares Andersons and Wilmar International”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Andersons	$11.26 billion	0.11	$114.01 million	$3.17	11.73
Wilmar International	$67.38 billion	0.22	$1.17 billion	N/A	N/A

Wilmar International has higher revenue and earnings than Andersons.

Profitability

This table compares Andersons and Wilmar International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Andersons	0.97%	7.35%	3.14%
Wilmar International	N/A	N/A	N/A

Summary

Andersons beats Wilmar International on 10 of the 15 factors compared between the two stocks.

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.

About Wilmar International

Wilmar International Limited operates as an agribusiness company in Singapore, South East Asia, the People's Republic of China, India, Europe, Australia/New Zealand, Africa, and internationally. The company operates through four segments: Food Products, Feed and Industrial Products, Plantation and Sugar Milling, and Others. The Food Products segment engages in the processing, branding, and distribution of a range of edible food products, including vegetable oils, sugar, flour, rice, noodles, specialty fats, snacks, bakery, and dairy products, as well as ready-to-eat meals and central kitchen products. The Feed and Industrial Products segment is involved in the processing, merchandising, and distribution of products, such as animal feeds, non-edible palm and lauric products, agricultural commodities, oleochemicals, gas oil, and biodiesel. The Plantation and Sugar Milling segment engages in the cultivation and milling of palm oil and sugarcane. The Others segment provides logistics and jetty port services, as well as engages in investment activities. The company was formerly known as Ezyhealth Asia Pacific Ltd and changed its name to Wilmar International Limited in July 2006. Wilmar International Limited is headquartered in Singapore.