Critical Contrast: Dole Food (DOLE) vs. Fresh Del Monte Produce (FDP)

Dole Food (NYSE: DOLE) and Fresh Del Monte Produce (NYSE:FDP) are both non-cyclical consumer goods & services companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, dividends, analyst recommendations, earnings and profitability.

Insider & Institutional Ownership

65.4% of Fresh Del Monte Produce shares are owned by institutional investors. 36.9% of Fresh Del Monte Produce 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.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Dole Food and Fresh Del Monte Produce, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dole Food 0 0 0 0 N/A
Fresh Del Monte Produce 0 0 0 0 N/A

Profitability

This table compares Dole Food and Fresh Del Monte Produce’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dole Food N/A N/A N/A
Fresh Del Monte Produce 3.40% 7.62% 5.20%

Dividends

Fresh Del Monte Produce pays an annual dividend of $0.60 per share and has a dividend yield of 1.2%. Dole Food does not pay a dividend. Fresh Del Monte Produce pays out 22.1% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Dole Food and Fresh Del Monte Produce’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dole Food N/A N/A N/A ($0.98) N/A
Fresh Del Monte Produce $4.01 billion 0.60 $225.10 million $2.72 17.71

Fresh Del Monte Produce has higher revenue and earnings than Dole Food. Dole Food 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.

Summary

Fresh Del Monte Produce beats Dole Food on 8 of the 9 factors compared between the two stocks.

Dole Food Company Profile

Dole Food Company, Inc. (Dole) is a producer, marketer and distributor of fresh fruit and fresh vegetables. The Company is a producer of bananas and pineapples, and packaged fruit products, packaged salads and fresh-packed vegetables. The Company has three business segments: fresh fruit, fresh vegetables and packaged foods. The fresh fruit segment contains operating divisions that produce and market fresh fruit to wholesale, retail and institutional customers worldwide. The fresh vegetables segment produces and markets fresh-packed and value-added vegetables and salads to wholesale, retail and institutional customers, primarily in North America and Europe. The packaged foods segment contains several operating divisions that produce and market packaged foods, including fruit, juices, frozen fruit and healthy snack foods. In November 2013, Dole Food Company, Inc announced that an investor group acquired the remaining 60.43% interest in the Company.

Fresh Del Monte Produce Company Profile

Fresh Del Monte Produce Inc. is a holding company. The Company, through its subsidiaries, is engaged in sourcing, transportation and marketing of fresh and fresh-cut produce together with prepared food products in Europe, Africa and the Middle East. Its operations are aggregated into business segments on the basis of its products: bananas, other fresh produce and prepared food. It sources its fresh produced products, such as bananas, pineapples, melons, tomatoes, grapes, apples, pears, peaches, plums, nectarines, cherries, citrus, avocados, blueberries and kiwi from Central and South America, Africa, the Philippines, North America and Europe. It sources its prepared food products from Africa, Europe and the Middle East. It distributes its products in North America, Europe, Asia, the Middle East, Africa and South America. It markets its products under the DEL MONTE brand, as well as under other brands, including UTC, Rosy, Fruit Express, Just Juice, Fruitini and other regional brands.

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