Critical Analysis: FMC (NYSE:FMC) and Sino Agro Food (OTCMKTS:SIAF)

Sino Agro Food (OTCMKTS:SIAF) and FMC (NYSE:FMC) are both consumer staples companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, dividends, valuation, profitability, institutional ownership, earnings and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings and target prices for Sino Agro Food and FMC, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sino Agro Food	0	0	0	0	0.00
FMC	1	7	5	0	2.31

FMC has a consensus price target of $49.58, suggesting a potential upside of 49.69%. Given FMC’s stronger consensus rating and higher possible upside, analysts clearly believe FMC is more favorable than Sino Agro Food.

Insider and Institutional Ownership

91.9% of FMC shares are owned by institutional investors. 5.9% of Sino Agro Food shares are owned by company insiders. Comparatively, 0.7% of FMC shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Sino Agro Food and FMC”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sino Agro Food	N/A	N/A	N/A	N/A	N/A
FMC	$4.25 billion	0.97	$341.10 million	$0.80	41.40

FMC has higher revenue and earnings than Sino Agro Food.

Profitability

This table compares Sino Agro Food and FMC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sino Agro Food	N/A	N/A	N/A
FMC	2.42%	9.36%	3.51%

Summary

FMC beats Sino Agro Food on 8 of the 9 factors compared between the two stocks.

About Sino Agro Food

Sino Agro Food, Inc. is a holding company, which engages in the agriculture and aquaculture business. It operates through the following segments: Fishery Development; Hylocereus Undatus Plantation; Organic Fertilizer and Bread Grass; Cattle Farm Development; and Corporate and Others. Its products include fish, eels, prawns, beef, and mutton. The company was founded by Yip Kun Lee on October 1, 1974 and is headquartered in Guangzhou, China.

About FMC

FMC Corporation, an agricultural sciences company, provides crop protection, plant health, and professional pest and turf management products. It develops, markets, and sells crop protection chemicals that includes insecticides, herbicides, and fungicides; and biologicals, crop nutrition, and seed treatment products, which are used in agriculture to enhance crop yield and quality by controlling a range of insects, weeds, and diseases, as well as in non-agricultural markets for pest control. The company markets its products through its own sales organization and through alliance partners, independent distributors, and sales representatives. It operates in North America, Latin America, Europe, the Middle East, Africa, and Asia. The company was founded in 1883 and is headquartered in Philadelphia, Pennsylvania.