Head-To-Head Comparison: Fresh Del Monte Produce (NYSE:FDP) versus Cresud S.A.C.I.F. y A. (NASDAQ:CRESY)

Fresh Del Monte Produce (NYSE:FDP) and Cresud S.A.C.I.F. y A. (NASDAQ:CRESY) are both small-cap consumer staples companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.

Profitability

This table compares Fresh Del Monte Produce and Cresud S.A.C.I.F. y A.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fresh Del Monte Produce	2.10%	7.63%	5.01%
Cresud S.A.C.I.F. y A.	23.88%	10.34%	4.38%

Earnings and Valuation

This table compares Fresh Del Monte Produce and Cresud S.A.C.I.F. y A.”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fresh Del Monte Produce	$4.32 billion	0.44	$90.70 million	$1.88	21.49
Cresud S.A.C.I.F. y A.	$887.72 million	0.86	$96.15 million	$2.96	4.07

Cresud S.A.C.I.F. y A. has lower revenue, but higher earnings than Fresh Del Monte Produce. Cresud S.A.C.I.F. y A. is trading at a lower price-to-earnings ratio than Fresh Del Monte Produce, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Fresh Del Monte Produce has a beta of 0.28, suggesting that its share price is 72% less volatile than the S&P 500. Comparatively, Cresud S.A.C.I.F. y A. has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Fresh Del Monte Produce and Cresud S.A.C.I.F. y A., as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fresh Del Monte Produce	0	0	1	0	3.00
Cresud S.A.C.I.F. y A.	0	1	0	0	2.00

Dividends

Fresh Del Monte Produce pays an annual dividend of $1.20 per share and has a dividend yield of 3.0%. Cresud S.A.C.I.F. y A. pays an annual dividend of $0.61 per share and has a dividend yield of 5.1%. Fresh Del Monte Produce pays out 63.8% of its earnings in the form of a dividend. Cresud S.A.C.I.F. y A. pays out 20.6% 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. Fresh Del Monte Produce has increased its dividend for 5 consecutive years. Cresud S.A.C.I.F. y A. is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

64.8% of Fresh Del Monte Produce shares are held by institutional investors. Comparatively, 12.9% of Cresud S.A.C.I.F. y A. shares are held by institutional investors. 31.6% of Fresh Del Monte Produce shares are held by company insiders. Comparatively, 36.2% of Cresud S.A.C.I.F. y A. shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Cresud S.A.C.I.F. y A. beats Fresh Del Monte Produce on 9 of the 16 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 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.

About Cresud S.A.C.I.F. y A.

Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria, an agricultural company, engages in the production of agricultural commodities in Brazil and other Latin American countries. The company operates through Agricultural Business, and Business Urban Properties and Investments segments. It is also involved in the management, development, and ownership of shopping malls, office buildings, and hotels; sale of grain derivatives, such as flour and oil; production and sale of crops, such as soybean, sugarcane, wheat, corn, oilseed, and sunflower, as well as sorghum and peanuts; and breeding, purchasing, and/or fattening of cattle for sale to slaughterhouses and supermarkets. In addition, it leases its farms to third parties for agriculture, cattle breeding, and seed production; and offers agricultural services. The company was incorporated in 1936 and is headquartered in Buenos Aires, Argentina.