[1] Market Valuation: At P/S of 14.8, BYND is trading at a more expensive price compared to 0.2 for BG
Market ValuationBeyond MeatBungevs BungeAs of 10/20/2021 Price To Sales Ratio (P/S)14.80.2More ExpensivePrice To OpInc Ratio (P/EBIT)-157.75.6-Price To Earnings Ratio (PE)-142.96.1-
[2] Growth & Profits: Considering the valuation, the market appears to be rewarding BYND's higher revenue growth with less regard to profitability - BYND has demonstrated better revenue growth: 148% annually in last 3 FY, 13.2% LTM, 31.8% last Q (yoy), and 38.1% last Q (qoq) - In comparison, BG has grown at -3.2%, 28.6%, 62.7%, and 18.7% respectively, during the same periods - However, BG has shown greater profit generation promise: BG, 2.7% margin, 1.5% margin expansion - The corresponding values for BYND stand at -12.8%, 3.9%
Growth & ProfitBeyond MeatBungevs Bunge As of 10/20/2021 Revenue GrowthLast Q Growth (QoQ)38%19%Growing FasterLast Q Growth (YoY)32%63%Growing SlowerLTM Growth13%29%Growing SlowerLast 3 Fiscal Year CAGR132%-3.3%Growing Faster ProfitabilityLTM OpInc Margin-9.4%4.3%Loss MakingLast 3 Fiscal Year OpInc Margin Change21%1.4%More ImprovementLTM FCF Margin---
[3] Financial Risk: Also, is the market ignoring risk to BYND? Unlikely as the company does not appear to be at higher risk vs BG - BYND has a much better debt position, with debt as % of equity of 0.0% vs 57.4% for BG - BG has more cash cushion, with cash as % of assets of 1.5% vs 0.0% for BYND
Financial RiskBeyond MeatBungevs Bunge As of 10/20/2021Debt as % of Equity0%57%Lower Debt LoadCash as % of Assets0%1.5%Worse Cash Position
[4] Market Returns: What about market returns of BYND vs BG? - BG has higher average annualized return of 11.4% vs 10.3% for BYND based on key market periods - These key market periods include, year-to-date, pre-covid to now, and 1, 2, and 3 years prior to covid
MetricsBGBYND Recent Returns YTD31.9%-14.0%LTM58.4%-41.6%Pre-Covid To Now84.2%19.9% Last 3 Years Returns26.0%63.5%Sharpe Ratio0.330.57Max Drawdown-55.1%-19.1%
Notes:
[1] Q = quarter, LTM = last twelve months, FY = fiscal years, yoy = year-on-year, qoq = quarter-on-quarter
[2] Revenue growth decision is made by giving more weightage to long-term revenue growth (3-year average) and lesser weightage to quarterly growths
[3] Margin mentioned is average of last Q, LTM, and last 3 FY; margin increase is average of increase in last Q vs LTM and increase in last Q vs 3-FY average