Head-To-Head Review: Wilmar International (OTCMKTS:WLMIY) and Smithfield Foods (NASDAQ:SFD)

Smithfield Foods (NASDAQ:SFD) and Wilmar International (OTCMKTS:WLMIY) are both consumer staples companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, institutional ownership, profitability, risk and dividends.

Dividends

Smithfield Foods pays an annual dividend of $1.25 per share and has a dividend yield of 5.7%. Wilmar International pays an annual dividend of $0.64 per share and has a dividend yield of 2.2%. Smithfield Foods pays out 46.6% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares Smithfield Foods and Wilmar International”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Smithfield Foods	$15.53 billion	0.56	$987.00 million	$2.68	8.22
Wilmar International	$70.42 billion	0.26	$1.41 billion	N/A	N/A

Wilmar International has higher revenue and earnings than Smithfield Foods.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Smithfield Foods and Wilmar International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Smithfield Foods	1	0	5	0	2.67
Wilmar International	0	0	0	0	0.00

Smithfield Foods presently has a consensus target price of $31.50, indicating a potential upside of 43.02%. Given Smithfield Foods’ stronger consensus rating and higher possible upside, research analysts plainly believe Smithfield Foods is more favorable than Wilmar International.

Profitability

This table compares Smithfield Foods and Wilmar International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Smithfield Foods	6.84%	15.55%	8.84%
Wilmar International	N/A	N/A	N/A

Volatility & Risk

Smithfield Foods has a beta of -0.44, meaning that its share price is 144% less volatile than the S&P 500. Comparatively, Wilmar International has a beta of 0.25, meaning that its share price is 75% less volatile than the S&P 500.

Summary

Smithfield Foods beats Wilmar International on 8 of the 12 factors compared between the two stocks.

About Smithfield Foods

Smithfield Foods, Inc. produces and markets a variety of fresh meat and packaged meats products both domestically and internationally. The Company operates in four segments: Pork, Hog Production, International and Corporate, each of which consists of a number of subsidiaries, joint ventures and other investments. The Pork segment consists mainly of its three wholly owned United States fresh pork and packaged meats subsidiaries: The Smithfield Packing Company, Inc. (Smithfield Packing), Farmland Foods, Inc. (Farmland Foods) and John Morrell Food Group (John Morrell). The Hog Production segment consists of the Company’s hog production operations located in the United States. On September 2012 (fiscal 2013), the Company acquired a 70% controlling interest in American Skin Food Group, LLC. Effective September 26, 2013, Shuanghui International Holdings Ltd merged with Smithfield Foods Inc, a producer and wholesaler of pork meat products.

About Wilmar International

Wilmar International Limited operates as an agribusiness company in Singapore, South East Asia, the People's Republic of China, India, Europe, Australia/New Zealand, Africa, and internationally. The company operates through four segments: Food Products, Feed and Industrial Products, Plantation and Sugar Milling, and Others. The Food Products segment engages in the processing, branding, and distribution of a range of edible food products, including vegetable oils, sugar, flour, rice, noodles, specialty fats, snacks, bakery, and dairy products, as well as ready-to-eat meals and central kitchen products. The Feed and Industrial Products segment is involved in the processing, merchandising, and distribution of products, such as animal feeds, non-edible palm and lauric products, agricultural commodities, oleochemicals, gas oil, and biodiesel. The Plantation and Sugar Milling segment engages in the cultivation and milling of palm oil and sugarcane. The Others segment provides logistics and jetty port services, as well as engages in investment activities. The company was formerly known as Ezyhealth Asia Pacific Ltd and changed its name to Wilmar International Limited in July 2006. Wilmar International Limited is headquartered in Singapore.