Pilgrim’s Pride Corporation (PPC) Vs. Capital One Financial Corporation (COF): Which Is Riskier?

Pilgrim’s Pride Corporation (NASDAQ: PPC) shares are -34.86% down in the year-to-date (YTD) period and have moved 3.80% or $0.78 higher in the latest trading session. Comparatively, the stock is down -22.57% over the trailing 3-month period. If we look at the shorter duration, its week performance is 18.65% and 18.26% over the month.

Analyst Recommendations

On October 25, 2019, BofA/Merrill recommended the PPC stock is a Neutral, while earlier, Stephens had Downgrade the stock as a Equal-Weight on January 16, 2020. 9 analysts offering the recommendations for the stock have a consensus rating of 2.40 to suggest that the PPC stock is a “Moderate Sell. 0 of the 9 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 4 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $21.31 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $29.57. The forecasts give the Pilgrim’s Pride Corporation stock a price target range of $39.00 on the higher side while at least one analyst think the stock could plunge to a low of $20.00. The two limits represent an upside potential of 45.36% or -6.55%.

Earnings Forecast

Analysts estimate the earnings to decrease -41.70% in the current quarter to $0.17, down from the $0.35 reported in the same quarter a year ago. For the current year, earnings should grow to an average of $1.76, up 10.20% from $1.62 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between $0.17 and $0.88. Wall Street estimates earnings per share to be at an average of $2.35 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 9 over the last 12 months, while SEC filings reveal that there have been 3 insider sales over the same period. Insiders have purchases 299,061 shares while those sold by company executives and officers stand at 129,920. The last 3 months have seen insiders trade a total of 87,891 and 3,988 in purchases and sales respectively.

Penn Jayson, a CEO at the company, sold 51,222 shares worth $1.45 million at $28.29 per share on Aug 06. The CEO had earlier sold another 3,988 PPC shares valued at $88978.0 on Feb 26. The shares were sold at $22.31 per share.

Capital One Financial Corporation (NYSE:COF), on the other hand, is trading around $63.75 with a market cap of $29.37B and analyst research firms have a positive stance on its shares. Analysts predict that the stock will reach $83.39 and spell out a more modest performance – a 23.55% return. Some analysts are even forecasting $0.73 per share in earnings this year on a short term (1 year) basis.

Insider activity

Insiders have transacted a total of 191 times at Capital One Financial Corporation over the last 6 months, with insider purchases undertaken 73 times and accounting for 1,293,226 shares. Insider sales totaled 636,203 shares over the same period, with these deals completed in 118 transactions. Looking at these numbers, we realize that net purchases over that period are -45.0 shares. Insiders now hold a total of 3.89M shares after the latest sales, with 32.00% net shares purchased.

Major holders

Insiders own 1.00% of the company shares, while shares held by institutions stand at 92.10% with a share float percentage of 453.51M. Investors are also buoyed by the number of investors in a company, with Capital One Financial Corporation having a total of 1,257 institutions that hold shares in the company. The top two institutional holders are Dodge & Cox Inc with over 40.49 million shares worth more than $4.17 billion. As of Dec 30, 2019, Dodge & Cox Inc held 8.85% of shares outstanding.

The other major institutional holder is Vanguard Group, Inc. (The), with the investment firm holding over 35.69 million shares as of Dec 30, 2019. The firm’s total holdings are worth over $3.67 billion and represent 7.80% of shares outstanding.