Davis Commodities (NASDAQ:DTCK) versus FMC (NYSE:FMC) Critical Contrast

FMC (NYSE:FMC) and Davis Commodities (NASDAQ:DTCK) are both small-cap consumer staples companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, dividends, institutional ownership, analyst recommendations, earnings and profitability.

Profitability

This table compares FMC and Davis Commodities’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FMC	2.42%	9.36%	3.51%
Davis Commodities	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent ratings and target prices for FMC and Davis Commodities, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FMC	2	10	3	0	2.07
Davis Commodities	1	0	0	0	1.00

FMC presently has a consensus target price of $29.75, indicating a potential upside of 110.31%. Given FMC’s stronger consensus rating and higher probable upside, research analysts clearly believe FMC is more favorable than Davis Commodities.

Institutional & Insider Ownership

91.9% of FMC shares are held by institutional investors. Comparatively, 81.8% of Davis Commodities shares are held by institutional investors. 0.7% of FMC shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk & Volatility

FMC has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500. Comparatively, Davis Commodities has a beta of -1.28, suggesting that its stock price is 228% less volatile than the S&P 500.

Valuation & Earnings

This table compares FMC and Davis Commodities”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FMC	$3.61 billion	0.49	$341.10 million	($4.24)	-3.34
Davis Commodities	$132.37 million	0.26	-$3.53 million	N/A	N/A

FMC has higher revenue and earnings than Davis Commodities.

Summary

FMC beats Davis Commodities on 12 of the 12 factors compared between the two stocks.

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.

About Davis Commodities

Davis Commodities Limited, an investment holding company, operates as an agricultural commodity trading company in Asia, Africa, and the Middle East. The company trades in agricultural commodities, including sugar, rice, and oil and fat products under the Maxwill and Taffy brands. It also provides warehouse storage and logistic, as well as agency services. Davis Commodities Limited was founded in 1999 and is headquartered in Singapore. The company operates as a subsidiary of Davis & KT Holdings Pte. Ltd.