Alico (ALCO) versus Fresh Del Monte Produce (FDP) Financial Review

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

Institutional & Insider Ownership

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74.2% of Alico shares are held by institutional investors. Comparatively, 62.6% of Fresh Del Monte Produce shares are held by institutional investors. 60.1% of Alico shares are held by company insiders. Comparatively, 39.0% of Fresh Del Monte Produce shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Alico has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500. Comparatively, Fresh Del Monte Produce has a beta of 0.43, meaning that its share price is 57% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Alico	-9.44%	-2.23%	-0.91%
Fresh Del Monte Produce	2.79%	6.70%	4.25%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alico	$129.83 million	1.99	-$9.45 million	N/A	N/A
Fresh Del Monte Produce	$4.09 billion	0.53	$120.80 million	N/A	N/A

Fresh Del Monte Produce has higher revenue and earnings than Alico.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Alico and Fresh Del Monte Produce, as reported by MarketBeat.

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

Dividends

Alico pays an annual dividend of $0.24 per share and has a dividend yield of 0.8%. Fresh Del Monte Produce pays an annual dividend of $0.60 per share and has a dividend yield of 1.3%. Fresh Del Monte Produce has increased its dividend for 2 consecutive years. Fresh Del Monte Produce is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Fresh Del Monte Produce beats Alico on 7 of the 11 factors compared between the two stocks.

Alico Company Profile

Alico, Inc., together with its subsidiaries, operates as an agribusiness and land management company in the United States. The company operates through three segments: Alico Citrus, Conservation and Environmental Resources, and Other Operations. The Alico Citrus segment engages in planting, owning, cultivating, and/or managing citrus groves to produce fruits for sale to fresh and processed citrus markets; and contracting for the harvesting, marketing, and hauling of citrus. The Conservation and Environmental Resources segment is involved in the activities related to cattle grazing, sod, native plant, and animal sales; and leasing, management, and/or conservation of unimproved native pasture land. The Other Operations segment engages in the activities related to rock mining royalties, oil exploration, and other lines of business; and ownership and/or lease of improved farmland. Alico, Inc. owned approximately 122,000 acres of land located in 12 counties in Florida, which include the Alachua, Charlotte, Collier, DeSoto, Glades, Hardee, Hendry, Highlands, Lee, Martin, Osceola, and Polk. The company was founded in 1960 and is based in Fort Myers, Florida. Alico, Inc. is a subsidiary of 734 Investors, LLC.

Fresh Del Monte Produce Company Profile

Fresh Del Monte Produce Inc., through its subsidiaries, produces, markets, and distributes fresh and fresh-cut fruits and vegetables worldwide. It offers fresh produce products consisting of bananas, pineapples, melons, tomatoes, grapes, apples, pears, peaches, plums, nectarines, cherries, citrus, avocados, blueberries, strawberries, and kiwi; various vegetables, including potatoes, onions, bell peppers, and cucumbers; and various other fruits, such as plantains and mangos. The company also produces and distributes prepared fruits and vegetables, juices, beverages, snacks, poultry, and meat products. In addition, it engages in ocean freight business; and manufacturing plastic and box products, such as bins, trays, bags, and boxes. The company offers its products under the DEL MONTE brand, as well as under other brands, such as UTC, Rosy, Fruit Express, Just Juice, Fruitini, and other regional brands. It markets and distributes its products to retail stores, club stores, wholesalers, distributors, and foodservice operators. Fresh Del Monte Produce Inc. was founded in 1886 and is headquartered in Coral Gables, Florida.