Critical Analysis: Ingredion (INGR) vs. RiceBran Technologies (RIBT)

Ingredion (NYSE:INGR) and RiceBran Technologies (NASDAQ:RIBT) are both consumer staples companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, risk and profitability.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Ingredion and RiceBran Technologies, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ingredion 0 4 2 0 2.33
RiceBran Technologies 0 1 1 0 2.50

Ingredion currently has a consensus price target of $117.80, indicating a potential upside of 19.73%. RiceBran Technologies has a consensus price target of $5.00, indicating a potential upside of 55.28%. Given RiceBran Technologies’ stronger consensus rating and higher probable upside, analysts clearly believe RiceBran Technologies is more favorable than Ingredion.

Volatility and Risk

Ingredion has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500. Comparatively, RiceBran Technologies has a beta of 0.35, suggesting that its stock price is 65% less volatile than the S&P 500.

Dividends

Ingredion pays an annual dividend of $2.50 per share and has a dividend yield of 2.5%. RiceBran Technologies does not pay a dividend. Ingredion pays out 32.5% of its earnings in the form of a dividend. Ingredion has increased its dividend for 5 consecutive years.

Insider & Institutional Ownership

85.3% of Ingredion shares are held by institutional investors. Comparatively, 10.7% of RiceBran Technologies shares are held by institutional investors. 1.8% of Ingredion shares are held by insiders. Comparatively, 10.2% of RiceBran Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Ingredion and RiceBran Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ingredion 7.40% 17.55% 8.71%
RiceBran Technologies -74.93% -45.57% -39.26%

Valuation and Earnings

This table compares Ingredion and RiceBran Technologies’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ingredion $6.18 billion 1.13 $519.00 million $7.70 12.78
RiceBran Technologies $13.35 million 6.53 -$4.53 million N/A N/A

Ingredion has higher revenue and earnings than RiceBran Technologies.

Summary

Ingredion beats RiceBran Technologies on 10 of the 15 factors compared between the two stocks.

Ingredion Company Profile

Ingredion Incorporated, together with its subsidiaries, produces and sells starches and sweeteners for various industries. The company operates through four segments: North America, South America, Asia Pacific and Europe, and Middle East and Africa. It offers sweetener products comprising glucose syrups, high maltose syrups, high fructose corn syrups, caramel colors, dextrose, polyols, maltodextrins, glucose and syrup solids, as well as food-grade and industrial starches, and biomaterials. The company also provides animal feed products; edible corn oil; refined corn oil to packers of cooking oil and to producers of margarine, salad dressings, shortening, mayonnaise, and other foods; and corn gluten feed used as protein feed for chickens, pet food, and aquaculture. Its products are derived primarily from processing corn and other starch-based materials, such as tapioca, potato, and rice. The company serves food, beverage, paper and corrugating products, brewing, pharmaceutical, textile, and personal care industries, as well as animal feed and corn oil markets. The company was formerly known as Corn Products International, Inc. and changed its name to Ingredion Incorporated in June 2012. Ingredion Incorporated was founded in 1906 and is headquartered in Westchester, Illinois.

RiceBran Technologies Company Profile

RiceBran Technologies processes and markets healthy, natural, and nutrient dense products derived from raw rice bran. The company manufactures and distributes stabilized rice bran (SRB) in various granulations with other products and derivatives. It offers RiBalance, a rice bran nutritional package derived from further processing of SRB; RiSolubles, a nutritious carbohydrate and lipid rich fraction of RiBalance; RiFiber, a protein and fiber rich derivative of RiBalance; and protein and protein/fiber blends under the ProRyza brand. The company serves natural food, food and animal nutrition manufacturers, wholesalers, and retailers in the United States, Brazil, and internationally. The company was formerly known as NutraCea and changed its name to RiceBran Technologies in October 2012. RiceBran Technologies was incorporated in 1998 and is headquartered in The Woodlands, Texas.

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