I wrote a long piece comparing the two here but pressed the wrong button and all of the research went so I will quickly summarise. - Note to self, write on a word document and copy & paste in future!
https://www.angloeastern.co.uk...
https://www.wwf.org.uk/updates...
Looking at both Anglo-eastern Plantations (LON:AEP) & M P Evans (LON:MPE)
-Operating between Malaysia (AEP) and Indonesia (MPE) - both countries produce 80% global palm oil production - Increase global demand for palm oil.
-Palm oil price has climbed around 20% Year-to-date and 110% over 5 years.
-Both are cash generative with operating margins in 20% range - Anglo-eastern Plantations (LON:AEP) appears to have a lot more cash on the balance sheet; unsure what they plan to do with this whether they plan to recycle back to shareholders, start dividends or invest further in growth...
-Anglo-eastern Plantations (LON:AEP) has better liquidity ratios and is priced at around 15% discount to P/BV
-M P Evans (LON:MPE) pays a dividend and also a special dividend this year, approximately 4.3%in total.
-Anglo-eastern Plantations (LON:AEP) free float is around 18% - non-ex chairman is major share holder and owns 51% has been invested since 90s, second holding is Nokia Bell pension fund
-M P Evans (LON:MPE) has around 40% free float and with Nokia Bell Pension fund also holding 10%, the largest share holder is another corporation who holds 23%
-Average lifespan of Palm oil plant is around 25-30 years; produces oil from around 3 years and it appears both are in peak production timeframe for the next 5-10 years judging by revenues and profits etc
-There are ESG elements to be aware of (I have linked an article from WWF at the top) - Also to consider that both Malaysia and Indonesia are emerging markets and both have risk exposure to natural disasters etc.
I would be interested to hear the thoughts of others here, if there are any other palm oil companies listed that they are aware of that look appealing?
