Critical Review: Golden Agri-Resources (OTCMKTS:GARPY) versus Bunge Global (NYSE:BG)

Golden Agri-Resources (OTCMKTS:GARPY) and Bunge Global (NYSE:BG) are both consumer defensive companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, profitability, valuation and earnings.

Dividends

Golden Agri-Resources pays an annual dividend of $0.79 per share and has a dividend yield of 4.0%. Bunge Global pays an annual dividend of $2.72 per share and has a dividend yield of 2.8%. Golden Agri-Resources pays out 39.4% of its earnings in the form of a dividend. Bunge Global pays out 21.9% 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.

Institutional & Insider Ownership

0.0% of Golden Agri-Resources shares are owned by institutional investors. Comparatively, 86.2% of Bunge Global shares are owned by institutional investors. 0.6% of Bunge Global shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Golden Agri-Resources and Bunge Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Golden Agri-Resources	N/A	N/A	N/A
Bunge Global	2.33%	14.84%	6.70%

Valuation and Earnings

This table compares Golden Agri-Resources and Bunge Global’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Golden Agri-Resources	N/A	N/A	N/A	$2.01	9.91
Bunge Global	$55.82 billion	0.24	$2.24 billion	$12.42	7.77

Bunge Global has higher revenue and earnings than Golden Agri-Resources. Bunge Global is trading at a lower price-to-earnings ratio than Golden Agri-Resources, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Golden Agri-Resources and Bunge Global, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Golden Agri-Resources	0	0	0	0	N/A
Bunge Global	0	3	5	0	2.63

Bunge Global has a consensus target price of $118.00, indicating a potential upside of 22.27%. Given Bunge Global’s higher possible upside, analysts plainly believe Bunge Global is more favorable than Golden Agri-Resources.

Summary

Bunge Global beats Golden Agri-Resources on 10 of the 12 factors compared between the two stocks.

About Golden Agri-Resources

Golden Agri-Resources Ltd, an investment holding company, operates as an integrated palm oil plantation company in Europe, China, India, Pakistan, the Middle east, and the United States. It operates in two segments, Plantation and Palm Oil Mills; and Palm, Laurics and Others. The company offers bulk products, such as crude palm oil, palm kernel, palm kernel oil, palm kernel meal, olein, stearin, soybean oil, and soybean meal; oleo chemicals; palm oil based bio-diesel and other renewable resources based energy; and refined products. It also produces processed food products, such as instant noodles, as well as snack products and beverages. The company manages oil palm estates in Indonesia. In addition, it offers treasury management, building management, business and management consultancy, commercial and industrial real estate management, digital analytics; aerial manuring, construction, training, ship management, chartering, and technology product services. Further, the company provides IT consultancy, IT application design, development, and maintenance services; facilities for data center resources and other IT outsourced activities; and port loading, storage, packaging, and transportation service. Additionally, it engages in the production, cultivation, importing, marketing, selling, and distributing palm oil products; sales and logistical support services; cultivation of ornamental plants; production and trading of edible oils; wholesale trade; property investment activities; production and distribution of bottled ionised mineral water and fatty alcohol, acid, derivatives, and other chemical; shipping and logistics; owns and operates shipping vessels; office administration and dormant services; refinery operation; and sale of food and beverage products. The company was incorporated in 1996 and is based in Singapore. Golden Agri-Resources Ltd is a subsidiary of Flambo International Limited.

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.