Dundee (OTCMKTS:DDEJF – Get Free Report) and Cal-Maine Foods (NASDAQ:CALM – Get Free Report) are both basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, valuation, institutional ownership, dividends and profitability.
Analyst Ratings
This is a breakdown of recent recommendations for Dundee and Cal-Maine Foods, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Dundee | 0 | 0 | 0 | 0 | 0.00 |
Cal-Maine Foods | 0 | 2 | 0 | 0 | 2.00 |
Cal-Maine Foods has a consensus price target of $110.00, suggesting a potential upside of 5.40%. Given Cal-Maine Foods’ stronger consensus rating and higher possible upside, analysts plainly believe Cal-Maine Foods is more favorable than Dundee.
Profitability
Net Margins | Return on Equity | Return on Assets | |
Dundee | N/A | 26.61% | 23.95% |
Cal-Maine Foods | 28.63% | 54.81% | 44.18% |
Insider & Institutional Ownership
3.0% of Dundee shares are held by institutional investors. Comparatively, 84.7% of Cal-Maine Foods shares are held by institutional investors. 13.5% of Cal-Maine Foods shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Dundee and Cal-Maine Foods”s revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Dundee | $51.17 million | 3.64 | $43.14 million | $0.56 | 3.72 |
Cal-Maine Foods | $4.26 billion | 1.20 | $1.22 billion | $24.95 | 4.18 |
Cal-Maine Foods has higher revenue and earnings than Dundee. Dundee is trading at a lower price-to-earnings ratio than Cal-Maine Foods, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Dundee has a beta of 0.5, indicating that its stock price is 50% less volatile than the S&P 500. Comparatively, Cal-Maine Foods has a beta of 0.17, indicating that its stock price is 83% less volatile than the S&P 500.
Summary
Cal-Maine Foods beats Dundee on 11 of the 13 factors compared between the two stocks.
About Dundee
Dundee Corporation is a publicly owned investment manager. Through its operating subsidiaries, the firm is engaged in diverse business activities in the areas of investment advisory, corporate finance, energy, resources, agriculture, real estate and infrastructure. The Corporation also holds, directly and indirectly, a portfolio of investments mostly in these key areas, as well as other select investments in both publicly listed and private enterprises. Dundee Corporation was formerly known as Dundee Bancorp, Inc. Dundee Corporation was founded in 1984 is based in Toronto, Canada with additional office in Vancouver, Canada.
About Cal-Maine Foods
Cal-Maine Foods, Inc., together with its subsidiaries, produces, grades, packages, markets, and distributes shell eggs. The company offers specialty shell eggs, such as nutritionally enhanced, cage free, organic, free-range, pasture-raised, and brown eggs under the Egg-Land's Best, Land O' Lakes, Farmhouse Eggs, Sunups, Sunny Meadow, and 4Grain brand names. It sells its products to various customers, including national and regional grocery store chains, club stores, independent supermarkets, foodservice distributors, and egg product consumers primarily in the southwestern, southeastern, mid-western, and mid-Atlantic regions of the United States. Cal-Maine Foods, Inc. was founded in 1957 and is headquartered in Ridgeland, Mississippi.
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