Monsanto (NYSE: MON) and The Mosaic (NYSE:MOS) are both basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, valuation, analyst recommendations, dividends and profitability.
Monsanto pays an annual dividend of $2.16 per share and has a dividend yield of 1.7%. The Mosaic pays an annual dividend of $0.10 per share and has a dividend yield of 0.4%. Monsanto pays out 39.3% of its earnings in the form of a dividend. The Mosaic pays out 9.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
76.3% of Monsanto shares are owned by institutional investors. Comparatively, 80.9% of The Mosaic shares are owned by institutional investors. 0.8% of Monsanto shares are owned by company insiders. Comparatively, 0.5% of The Mosaic shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This table compares Monsanto and The Mosaic’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Monsanto and The Mosaic’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Monsanto||$14.64 billion||3.78||$2.26 billion||$5.50||22.80|
|The Mosaic||$7.41 billion||1.18||-$107.20 million||$1.09||22.79|
Monsanto has higher revenue and earnings than The Mosaic. The Mosaic is trading at a lower price-to-earnings ratio than Monsanto, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings for Monsanto and The Mosaic, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Monsanto currently has a consensus target price of $126.50, suggesting a potential upside of 0.88%. The Mosaic has a consensus target price of $25.17, suggesting a potential upside of 1.32%. Given The Mosaic’s higher probable upside, analysts clearly believe The Mosaic is more favorable than Monsanto.
Risk and Volatility
Monsanto has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500. Comparatively, The Mosaic has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500.
Monsanto beats The Mosaic on 11 of the 16 factors compared between the two stocks.
Monsanto Company, together with its subsidiaries, provides agricultural products for farmers worldwide. It operates in two segments, Seeds and Genomics, and Agricultural Productivity. The Seeds and Genomics segment produces row crop seeds, including corn, soybean, cotton, and canola seeds under the DEKALB, Asgrow, and Deltapine brands; and vegetable seeds, such as tomato, pepper, melon, cucumber, squash, beans, broccoli, onions, lettuce, and others under the Seminis and De Ruiter brands. It also develops biotechnology traits that assist farmers in controlling insects and weeds in corn, soybean, and cotton crops under the SmartStax, YieldGard, YieldGard VT Triple, VT Triple PRO, and VT Double PRO brands; Intacta RR2 PRO brand; Bollgard and Bollgard II brands; Roundup Ready and Roundup Ready 2 Yield brands; and Roundup Ready 2 Xtend and Bollgard II XtendFlex brands. In addition, this segment licenses a range of germplasm and trait technologies to large and small seed companies. The Agricultural Productivity segment manufactures and sells herbicides for nonselective agricultural and residential lawn and garden applications for weed control under the Roundup brand name; and herbicides for selective agricultural applications for weed control under the XtendiMax brand name. The company markets its products through distributors, independent retailers and dealers, agricultural cooperatives, plant raisers, and agents, as well as directly to farmers. The company was formerly known as Monsanto Ag Company and changed its name to Monsanto Company in March 2000. Monsanto Company was founded in 2000 and is based in St. Louis, Missouri.
About The Mosaic
The Mosaic Company, through its subsidiaries, produces and markets concentrated phosphate and potash crop nutrients worldwide. The company operates through three segments: Phosphates, Potash, and International Distribution. It owns and operates mines, which produce concentrated phosphate crop nutrients, such as diammonium phosphate, monoammonium phosphate, and ammoniated phosphate products; and phosphate-based animal feed ingredients primarily under the Biofos and Nexfos brand names. The company also produces and sells potash for use in the manufacturing of mixed crop nutrients and animal feed ingredients, and for industrial use; and for use in the de-icing and as a water softener regenerant, as well as fluorosilicic acid for water fluoridation. In addition, it provides nitrogen-based crop nutrients and animal feed ingredients, and other ancillary services; and purchases and sells phosphates, potash, and nitrogen products. The company sells its products to wholesale distributors, retail chains, cooperatives, independent retailers, and national accounts. The Mosaic Company was founded in 2004 and is headquartered in Plymouth, Minnesota.
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