SunOpta (STKL) versus The Andersons (ANDE) Head-To-Head Analysis

The Andersons (NASDAQ: ANDE) and SunOpta (NASDAQ:STKL) are both small-cap basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, dividends, risk, earnings and valuation.

Risk & Volatility

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The Andersons has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500. Comparatively, SunOpta has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500.

Profitability

This table compares The Andersons and SunOpta’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The Andersons 1.12% 4.83% 1.83%
SunOpta -10.57% -3.73% -1.13%

Institutional & Insider Ownership

77.7% of The Andersons shares are owned by institutional investors. Comparatively, 82.4% of SunOpta shares are owned by institutional investors. 5.5% of The Andersons shares are owned by insiders. Comparatively, 1.9% of SunOpta 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.

Earnings and Valuation

This table compares The Andersons and SunOpta’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
The Andersons $3.69 billion 0.25 $42.51 million $1.15 28.30
SunOpta $1.28 billion 0.49 -$135.32 million ($0.14) -51.79

The Andersons has higher revenue and earnings than SunOpta. SunOpta is trading at a lower price-to-earnings ratio than The Andersons, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations and price targets for The Andersons and SunOpta, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The Andersons 0 3 0 0 2.00
SunOpta 0 0 2 0 3.00

The Andersons presently has a consensus target price of $34.50, suggesting a potential upside of 5.99%. SunOpta has a consensus target price of $8.75, suggesting a potential upside of 20.69%. Given SunOpta’s stronger consensus rating and higher possible upside, analysts clearly believe SunOpta is more favorable than The Andersons.

Dividends

The Andersons pays an annual dividend of $0.66 per share and has a dividend yield of 2.0%. SunOpta does not pay a dividend. The Andersons pays out 57.4% of its earnings in the form of a dividend. The Andersons has increased its dividend for 3 consecutive years.

Summary

The Andersons beats SunOpta on 9 of the 16 factors compared between the two stocks.

About The Andersons

The Andersons, Inc., an agriculture company, operates in the grain, ethanol, plant nutrient, and rail sectors in the United States and internationally. The company's Grain segment operates grain elevators; stores grains; and provides grain marketing, risk management, and corn origination services to its customers and affiliated ethanol facilities. Its Ethanol segment purchases and sells ethanol; and offers facility operations, risk management, and ethanol and corn oil marketing services to the ethanol plants it invests in and operates. The company's Rail segment leases, sells, and repairs various types of railcars, locomotives, and barges; provides fleet management services to private railcar owners; and offers metal fabrication services. Its Plant Nutrient segment manufactures, distributes, and retails agricultural and related plant nutrients, corncob-based products, and pelleted lime and gypsum products; and crop nutrients, crop protection chemicals, and seed products, as well as provides application and agronomic services to commercial and family farmers. This segment also offers warehousing, packaging, and manufacturing services to nutrient producers and other distributors; and manufactures and distributes nitrogen reagents for air pollution control systems that are used in coal-fired power plants, and water treatment and dust abatement products. In addition, this segment produces professional turf care products for golf course and turf care markets; and fertilizer and control products, as well as provides contract manufacturing of fertilizer and control products. The Andersons, Inc. was founded in 1947 and is based in Maumee, Ohio.

About SunOpta

Sunopta Inc is a Canada-based company, which operates businesses focused on a healthy products portfolio. It operates through the following segments: Global Ingredients and Consumer Products. The Global Ingredients segment aggregates its North American and international raw material sourcing and supply operating segments focused on the procurement, processing and sale of specialty and organic grains, seeds, fruits, grain- and cocoa-based ingredients, and other commodities. The Consumer Products segment provides healthy and organic food products that are consumer-packaged to retailers, foodservice distributors and food manufacturers with a range of branded and private label products. It is focused on sourcing non-genetically modified (non-GMO) and organic ingredients, and manufacturing healthy food and beverage products. It manufactures packaged products focused on the healthy beverage, healthy fruit and healthy snack categories.

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