Critical Review: Fresh Del Monte Produce (NYSE:FDP) vs. African Agriculture (NASDAQ:AAGR)

Fresh Del Monte Produce (NYSE:FDP) and African Agriculture (NASDAQ:AAGR) are both small-cap consumer staples companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, dividends, valuation, earnings, analyst recommendations and profitability.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fresh Del Monte Produce	$4.32 billion	0.24	-$11.40 million	($0.51)	-42.76
African Agriculture	$1.82 million	0.98	-$43.06 million	N/A	N/A

Fresh Del Monte Produce has higher revenue and earnings than African Agriculture.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Fresh Del Monte Produce	-0.56%	4.59%	2.78%
African Agriculture	N/A	N/A	-228.81%

Insider and Institutional Ownership

64.8% of Fresh Del Monte Produce shares are owned by institutional investors. Comparatively, 20.5% of African Agriculture shares are owned by institutional investors. 30.1% of Fresh Del Monte Produce shares are owned by company insiders. Comparatively, 48.4% of African Agriculture shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Fresh Del Monte Produce has a beta of 0.44, suggesting that its stock price is 56% less volatile than the S&P 500. Comparatively, African Agriculture has a beta of -0.78, suggesting that its stock price is 178% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Fresh Del Monte Produce and African Agriculture, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fresh Del Monte Produce	0	0	0	0	N/A
African Agriculture	0	0	0	0	N/A

Summary

Fresh Del Monte Produce beats African Agriculture on 6 of the 9 factors compared between the two stocks.

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.

About African Agriculture

African Agriculture Holdings Inc., through its subsidiary Les Fermes de la Teranga SA, develops commercial farming business focusing on the production and sale of alfalfa for cattle feed and nutrition purposes in Africa. The company is based in New York, New York. African Agriculture Holdings Inc. is a subsidiary of Global Commodities & Investments Ltd.