Fresh Del Monte Produce (NYSE:FDP) & Mondelez International (NASDAQ:MDLZ) Head-To-Head Review

Mondelez International (NASDAQ:MDLZ) and Fresh Del Monte Produce (NYSE:FDP) are both consumer staples companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, dividends, analyst recommendations and profitability.

Insider & Institutional Ownership

78.3% of Mondelez International shares are owned by institutional investors. Comparatively, 64.8% of Fresh Del Monte Produce shares are owned by institutional investors. 0.4% of Mondelez International shares are owned by insiders. Comparatively, 30.6% of Fresh Del Monte Produce shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk and Volatility

Mondelez International has a beta of 0.39, indicating that its share price is 61% less volatile than the S&P 500. Comparatively, Fresh Del Monte Produce has a beta of 0.22, indicating that its share price is 78% less volatile than the S&P 500.

Dividends

Mondelez International pays an annual dividend of $2.08 per share and has a dividend yield of 3.3%. Fresh Del Monte Produce pays an annual dividend of $1.20 per share and has a dividend yield of 3.7%. Mondelez International pays out 76.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Fresh Del Monte Produce pays out 82.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Mondelez International has raised its dividend for 13 consecutive years and Fresh Del Monte Produce has raised its dividend for 5 consecutive years.

Analyst Ratings

This is a summary of recent recommendations for Mondelez International and Fresh Del Monte Produce, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mondelez International	0	10	14	1	2.64
Fresh Del Monte Produce	0	1	0	0	2.00

Mondelez International currently has a consensus price target of $67.30, indicating a potential upside of 7.76%. Given Mondelez International’s stronger consensus rating and higher probable upside, analysts clearly believe Mondelez International is more favorable than Fresh Del Monte Produce.

Earnings & Valuation

This table compares Mondelez International 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
Mondelez International	$39.67 billion	2.01	$2.45 billion	$2.72	22.96
Fresh Del Monte Produce	$4.27 billion	0.36	$90.70 million	$1.45	22.17

Mondelez International has higher revenue and earnings than Fresh Del Monte Produce. Fresh Del Monte Produce is trading at a lower price-to-earnings ratio than Mondelez International, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Mondelez International	8.86%	14.07%	5.16%
Fresh Del Monte Produce	1.63%	7.61%	4.89%

Summary

Mondelez International beats Fresh Del Monte Produce on 16 of the 18 factors compared between the two stocks.

About Mondelez International

Mondelez International, Inc., through its subsidiaries, manufactures, markets, and sells snack food and beverage products in the Latin America, North America, Asia, the Middle East, Africa, and Europe. It provides biscuits and baked snacks, including cookies, crackers, salted snacks, snack bars, and cakes and pastries; chocolates; and gums and candies, as well as various cheese and grocery, and powdered beverage products. The company's brand portfolio includes Oreo, Ritz, LU, CLIF Bar, and Tate's Bake Shop biscuits and baked snacks, as well as Cadbury Dairy Milk, Milka, and Toblerone chocolate. It serves supermarket chains, wholesalers, supercenters, club stores, mass merchandisers, distributors, convenience stores, gasoline stations, drug stores, value stores, and other retail food outlets through direct store delivery, company-owned and satellite warehouses, distribution centers, third party distributors, and other facilities, as well as through independent sales offices and agents. The company also sells products directly to businesses and consumers through e-retail platforms, retailer digital platforms, as well as through its direct-to-consumer websites and social media platforms. Mondelez International, Inc. was formerly known as Kraft Foods Inc. and changed its name to Mondelez International, Inc. in October 2012. The company was incorporated in 2000 and is headquartered in Chicago, Illinois.

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.