In this article, we will discuss 10 best plant-based companies to invest in.
As individuals become conscious of the health and wildlife detriments of consuming too many animal products, plant-based foods are becoming a healthier and environmentally friendly lifestyle choice. According to data by the Plant Based Foods Association, U.S. retail sales of plant-based foods went up by 6.2% in 2021, bringing the valuation of the plant-based market to a record high of $7.4 billion, up from $6.9 billion in 2020. The data further highlights that 62% of Americans were buying plant-based products in 2021, up from 61% in 2020.
Plant-Based Food Market Analysis
According to a report by Allied Market Research, the global vegan food market was worth $19.7 billion in 2020 and is expected to grow to $36.3 billion by 2030 at a compound annual growth rate of 6.4 % over the forecasted period. The regions part of the study were North America, Europe, Asia-Pacific, and LAMEA, of which Europe was identified as the largest market of plant-based meat alternatives in the world. The report further highlighted that according to estimates by the World Health Organization, 30% to 70% of Europeans were overweight. The United Kingdom was the largest market of alternative meats in Europe and also had the highest level of obesity, followed by other countries in Western Europe such as Germany and France. The rising demand for alternative meats and plant-based proteins is one of the major factors driving the growth of the plant-based food market in Europe.
Activities in The Plant-Based Space
In 2018, Unilever plc (NYSE:UL) acquired The Vegetarian Butcher, a Netherlands-based alternative meat company. In June 2021, meat giant Tyson Foods, Inc. (NYSE:TSN) revealed its first plant-based brand, First Pride, under which the company showcased a suite of organic products for retail markets and e-Commerce across the Asia Pacific.
Last November, Danone S.A. announced plans for investing approximately 43 million euros in 2022 to convert its dairy site in southern France into a production plant of oat-based drinks for Alpro, its plant-based brand. In November 2021, popular plant-based start-up Impossible Foods, Inc. was reported to have raised $500 million in funding, bringing its total funding up to $2 billion, and its valuation to $7 billion. According to data from Agfunder, Impossible Foods, Inc. is planning on going public in 2022, at a valuation of more than $10 billion through an IPO or SPAC merger.
Several factors are driving the growth of the plant-based industry and valuations of plant-based companies including the rising popularity of alternative meats, innovations in the industry, and mergers and acquisitions of private equities. Some of the best plant-based companies to invest in include Archer Daniels Midland Company (NYSE:ADM), Tyson Foods, Inc. (NYSE:TSN), and Kellogg Company (NYSE:K).
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Our Methodology
To determine the 10 best plant-based companies to invest in, we identified the major players in the industry by going through market reports and industry news. We looked at each company’s financial statements and its past performance of up to twelve months. We further took into account the analyst and investor sentiment for each company. We narrowed down our selection to companies that had positive investor sentiment, strong financials, and exhibited growth potential pointed out by expert financial analysts.
Best Plant Based Companies to Invest In
10. Beyond Meat, Inc. (NASDAQ:BYND)
Number of Hedge Fund Holders: 19
Beyond Meat, Inc. (NASDAQ:BYND) manufactures, markets, and sells plant-based meat products in the United States and internationally. The company sells a range of plant-based meat products across the platforms of beef, pork, and poultry.
Even though Beyond Meat, Inc. (NASDAQ:BYND) dipped in 2021 due to supply chain constraints and the delta variant, analysts are bullish on the stock for 2022. On January 31, 2022, Barclays analyst Benjamin Theurer upgraded Beyond Meat, Inc. (NASDAQ:BYND) to Overweight from Underweight with a price target of $80, up from $70. The analyst commented that the company’s growth potential in the U.S. foodservice channel and international markets is understated and poorly reflected in current valuations. The analyst notes that Beyond Meat, Inc. (NASDAQ:BYND) exhibits significant growth potential and is paving the path to lead the alternative meat market amidst rising competition in the sector.
This April, Beyond Meat, Inc. (NASDAQ:BYND) introduced the plant-based Beyond Burger and Beyond Meatballs at about 2,000 stores nationwide. On March 30, 2022, UBS analyst Cody Ross initiated coverage of Beyond Meat, Inc. (NASDAQ:BYND) with a Neutral rating and a $48 price target.
Beyond Meat, Inc. (NASDAQ:BYND) is rising in popularity among elite hedge funds. According to Insider Monkey’s database, 19 hedge funds held long positions in the company at the end of the fourth quarter of 2021. The total stakes of these funds equaled $120.24 million, up from $114.04 million in the third quarter of 2021 with 16 positions. The hedge fund sentiment for the stock is positive.
Singular Research mentioned Beyond Meat, Inc. (NASDAQ:BYND) in its third-quarter 2021 investor letter. Here’s what the firm had to say:
“BYND also was a low performer as the company warned of lower sales in the third quarter due to the delta variant and supply chain disruptions. The firm was also downgraded by Credit Suisse to Underperform from Neutral.”
9. Nomad Foods Limited (NYSE:NOMD)
Number of Hedge Fund Holders: 23
Nomad Foods Limited (NYSE:NOMD) is a leading European frozen food company offering a wide range of plant-based foods in the United Kingdom, Italy, Germany, France, Sweden, Austria, Norway, Spain, and the rest of Europe. This February, the company reported that its earnings per share for the fiscal fourth quarter came to $0.37, beating estimates by $0.01. Nomad Foods Limited (NYSE:NOMD) reported quarterly revenues of $789.15 million.
On March 30, 2022, UBS analyst Cody Ross initiated coverage of Nomad Foods Limited (NYSE:NOMD) with a Buy rating and a $26 price target. The analyst sees growth potential for the stock and expects it to benefit from surging inflation. The analyst noted Nomad Foods Limited (NYSE:NOMD) underperformed when Russia invaded Ukraine in fear of restrictions on Russian fish imports, however, these represent a mere 6% of the company’s cost-of-goods-sold.
By the end of the fourth quarter of 2021, 23 hedge funds held stakes in Nomad Foods Limited (NYSE:NOMD) worth over $293.82 million. Of these, the majority stakes were held by Renaissance Technologies making it the most prominent shareholder in Nomad Foods Limited (NYSE:NOMD). As of December 31, 2021, Renaissance Technologies owns more than 4.4 million shares of the stock which amounts to a stake value of $112.58 million.
Like Archer Daniels Midland Company (NYSE:ADM), Tyson Foods, Inc. (NYSE:TSN), and Kellogg Company (NYSE:K), Nomad Foods Limited (NYSE:NOMD) is a key player in the plant-based food industry.
8. Conagra Brands, Inc. (NYSE:CAG)
Number of Hedge Fund Holders: 25
Conagra Brands, Inc. (NYSE:CAG) is a Chicago-based consumer packaged goods company that sells products under various brand names to supermarkets, restaurants, and foodservice establishments. The company’s plant-based brands include Gardein, Duncan Hines, Healthy Choice, and Slim Jim, among others. This January, Morgan Stanley analyst Pamela Kaufman raised her price target on Conagra Brands, Inc. (NYSE:CAG) to $36 from $35 and maintained an Equal Weight rating on the shares.
This April, Conagra Brands, Inc. (NYSE:CAG) released its earnings for the fiscal third quarter of 2022. According to the company’s earnings report, Conagra Brands, Inc. (NYSE:CAG) reported earnings per share of $0.58 and generated quarterly revenues of $2.91 billion, up 5.15% year over year from $2.77 billion. As of April 7, 2022, the stock is up by 2.11% and the company boasts a market cap of $16.52 billion.
By the end of the fourth quarter of 2021, Conagra Brands, Inc. (NYSE:CAG) was spotted on 25 hedge fund portfolios that held collective stakes of $649.65 million in the company. This is compared to 20 positions in Q3 2021, with stakes worth $625.32 million. The hedge fund sentiment for the stock is positive.
As of December 31, 2021, JANA Partners is the largest shareholder in Conagra Brands, Inc. (NYSE:CAG) owning over 8 million shares of the stock. The fund’s stakes in the company were valued at $274.94 million, which represents 17.77% of JANA Partners’ Q4 2021 investment portfolio.
7. Ingredion Incorporated (NYSE:INGR)
Number of Hedge Fund Holders: 25
Ingredion Incorporated (NYSE:INGR) is an American multinational ingredient provider having a diverse portfolio of plant-based ingredients for manufacturers to add to their recipe formulations. Last November, Barclays analyst Benjamin Theurer initiated coverage of Ingredion Incorporated (NYSE:INGR) with an Overweight rating and a $115 price target. The analyst commented that he sees a potential upside to the stock as specialty product sales grow and plant-based meat diets become more popular.
As of April 7, 2022, Ingredion Incorporated (NYSE:INGR) boasts a market capitalization of $5.88 billion, has a forward dividend yield of 2.92%, and a trailing-twelve-month price-to-earnings ratio of 51.08.
On February 3, 2022, Ingredion Incorporated (NYSE:INGR) reported its earnings for the fiscal fourth quarter of 2021 in which the company beat revenue estimates. The company reported earnings per share of $1.09 and generated quarterly revenues amounting to $1.76 billion. The company’s quarterly revenues saw gains of 10.17% year over year and the company outperformed market consensus by $30.62 million. Ingredion Incorporated (NYSE:INGR) reported annual revenues of $6.9 billion for the fiscal year 2021. The company’s net sales grew by 15%, reflecting over $600 million of price mix improvement. Moreover, the company expects operating income growth for 2022 to lie between 7% to 9%.
By the end of the fourth quarter of 2021, 25 hedge funds were bullish on Ingredion Incorporated (NYSE:INGR) having stakes of $404.52 million in the company. This is compared to 20 positions in the preceding quarter, with collective stakes of $391.79 million. As of December 31, 2021, Yacktman Asset Management is the top shareholder in the company, having stakes of more than $254.43 million.
6. The Hain Celestial Group, Inc. (NASDAQ:HAIN)
Number of Hedge Fund Holders: 26
The Hain Celestial Group, Inc. (NASDAQ:HAIN) manufactures, markets, and sells organic and natural products in the United States, the United Kingdom, and internationally. The stock is becoming popular among investor circles. Insider Monkey’s data shows 26 hedge funds were long The Hain Celestial Group, Inc. (NASDAQ:HAIN) by the end of the fourth quarter of 2021, having stakes of more than $377.4 million in the company.
This January, Mizuho analyst John Baumgartner initiated coverage of The Hain Celestial Group, Inc. (NASDAQ:HAIN) with a Buy rating and a $47 price target. The analyst cites that the company is a key player in the plant-based food industry and should grow annual sales at a 6% rate through 2025.
On February 3, 2022, The Hain Celestial Group, Inc. (NASDAQ:HAIN) reported earnings for the fiscal second quarter of 2021 in which it beat EPS estimates by $0.03. According to the company’s earnings report, The Hain Celestial Group, Inc. (NASDAQ:HAIN) generated quarterly revenues of $476.94 million and the company’s earnings per share was $0.36.
Engaged Capital is the most prominent shareholder in The Hain Celestial Group, Inc. (NASDAQ:HAIN), having stakes worth $79.55 million in the company.
Investors are bullish on The Hain Celestial Group, Inc. (NASDAQ:HAIN). Other plant-based stocks that are among the top picks of elite hedge funds include Archer Daniels Midland Company (NYSE:ADM), Tyson Foods, Inc. (NYSE:TSN), and Kellogg Company (NYSE:K).
5. Kellogg Company (NYSE:K)
Number of Hedge Fund Holders: 31
Kellogg Company (NYSE:K) is a key player in the plant-based proteins sector. About 99% of its products are meatless and plant-based. On February 10, 2022, Kellogg Company (NYSE:K) reported earnings for the fiscal fourth quarter of 2021. The company generated revenues of $3.42 billion, outperforming market consensus by $28.64 million. The company’s earnings per share for the quarter came to $0.83, beating EPS estimates by $0.04. As of April 7, 2022, the stock’s trailing six-month returns are up to 6.01% and the company boasts a market cap of $22.76 billion.
This February, Goldman Sachs analyst Jason English raised his price target on Kellogg Company (NYSE:K) to $68 from $63 and reiterated a Neutral rating on the shares, in light of the company’s strong gains for the fourth quarter of 2021. The analyst also narrowed his fiscal year 2022 EPS view of the stock to $4.10-$4.14 from $3.86-$4.14.
Insider Monkey identified 31 hedge funds having long positions in Kellogg Company (NYSE:K) at the close of Q4 2021. The total stakes of these funds amounted to $350.73 million, up from $290.01 million in the prior quarter with 22 positions. The hedge fund sentiment for the stock is positive. The largest stakeholder in the company, as of the end of December 2021, was Renaissance Technologies. According to our data, the fund’s stakes in the Kellogg Company (NYSE:K) were worth $139.27 million, which represents 0.17% of Renaissance Technologies Q4 2021 investment portfolio.
4. Hormel Foods Corporation (NYSE:HRL)
Number of Hedge Fund Holders: 32
Hormel Foods Corporation (NYSE:HRL) develops, processes, and distributes various meat, nuts, and food products to retail, food services, deli, and commercial customers in the United States and internationally. This March, Argus analyst John Staszak upgraded Hormel Foods Corporation (NYSE:HRL) to Buy from Hold and gave the stock a $57 price target. The analyst commented that although the company faces challenges from rising costs and supply-chain constraints, he expects the company to balance out inflationary pressures through price hikes and to benefit from strong product demand.
On March 1, 2022, Hormel Foods Corporation (NYSE:HRL) released its earnings report for the fiscal first quarter of 2022 in which it beat revenue estimates by $124.40 million. The company reported earnings per share of $0.44 and generated revenues amounting to over $3.04 billion, up 23.70% year over year from $2.46 billion. As of April 7, 2022, Hormel Foods Corporation’s (NYSE:HRL) trailing six-month returns are up to 26.89% and the company is worth $28.83 billion.
At the close of Q4 2021, 32 hedge funds were bullish on Hormel Foods Corporation (NYSE:HRL) having collective stakes of $542.43 million. This is compared to 29 positions in the prior quarter with stakes worth $476.82 million. Citadel Investment Group is the most prominent shareholder in the company having stakes worth $147.99 million.
Here is what LRT Capital Management had to say about Hormel Foods Corporation (NYSE:HRL) in its third-quarter 2021 investor letter:
“Hormel Foods Corporation (HRL) – the maker of SPAM and Applegate Turkey (among many other products), is down over 20% since peaking last year, largely on fears of higher cost. We expect the company will be able to raise prices to offset cost inflation as they have always been able to do win their past.”
3. Tyson Foods, Inc. (NYSE:TSN)
Number of Hedge Fund Holders: 36
Tyson Foods, Inc. (NYSE:TSN) is one of the world’s largest meat producers. The company operates through Beef, Pork, Chicken, and Prepared Foods segments. As of April 7, 2022, Tyson Food, Inc. (NYSE:TSN) has gained 20.68% over the past twelve months.
This February, Tyson Foods, Inc. (NYSE:TSN) released its earnings report for the fiscal first quarter of 2022 in which it beat EPS estimates by $0.94. The company reported quarterly revenues of $12.93 billion, up 23.64% year over year, beating revenue estimates by $766.79 million. The company’s earnings per share for the quarter came to $2.87.
On February 8, 2022, Stephens analyst Ben Bienvenu raised his price target on Tyson Foods, Inc. (NYSE:TSN) to $115 from $110 and maintained an Overweight rating on the shares after the company’s Q1 earnings beat. In addition to strong quarterly gains, the analyst noted that the company has raised its margin guidance for chicken, beef, and prepared foods, also adding that the company’s share buyback of 4.2 million shares puts it in a position for growth.
By the end of the fourth quarter of 2021, 36 hedge funds were long Tyson Foods, Inc. (NYSE:TSN) having stakes worth more than $1.01 billion. This is compared to 33 positions in the preceding quarter with collective stakes of $865.19 million. As of December 31, 2021, Yacktman Asset Management is the most prominent shareholder in Tyson Foods, Inc. (NYSE:TSN) having stakes worth over $239.88 million.
2. Bunge Limited (NYSE:BG)
Number of Hedge Fund Holders: 38
Bunge Limited (NYSE:BG) operates as an agribusiness and food company worldwide. The company has four primary segments: Agribusiness, Refined and Specialty Oils, Milling, and Sugar and Bioenergy. Bunge Limited (NYSE:BG) was spotted on 38 hedge fund portfolios at the close of the fourth quarter of 2021. The total stakes of these funds in the company amounted to $655.62 million, up from $538.8 million in the prior quarter with 37 positions. The hedge fund sentiment around Bunge Limited (NYSE:BG) is positive.
On February 11, 2022, BofA analyst Steve Byrne raised his price target on Bunge Limited (NYSE:BG) to $120 from $105 and upgraded his rating to Buy from Neutral on the shares. The analyst commented that he sees Bunge Limited (NYSE:BG) being well-positioned to benefit from the global dislocation in crop supply and sees upside in the company’s processing and refined oil businesses.
This February, Bunge Limited (NYSE:BG) reported that its earnings per share for the fiscal fourth quarter of 2021 came to $3.49, beating expert EPS estimates by $0.62. The company reported quarterly revenues of $16.68 billion, up 32.30% year over year, outperforming market consensus by $1.19 billion. As of April 7, 2022, Bunge Limited (NYSE:BG) has gained 37.79% over the past six months and is worth $16.62 billion on the open market.
As of March 21, 2022, Candlestick Capital Management is the dominating shareholder in Bunge Limited (NYSE:BG), owning more than 1 million shares of the stock. The fund’s stakes in the company were valued at $95.64 million, which covers 1.41% of its Q4 2021 investment portfolio.
1. Archer Daniels Midland Company (NYSE:ADM)
Number of Hedge Fund Holders: 41
Archer Daniels Midland Company (NYSE:ADM) is a leading multinational provider of plant-based proteins, headquartered in Chicago. This January, the company reported earnings per share of $1.50, beating estimates by $0.13, for the fiscal fourth quarter of 2021. The company’s quarterly revenues came to $23.09 billion, up 28.43% year over year, and outperformed market consensus by $2.86 billion. As of April 7, 2022, Archer Daniels Midland Company (NYSE:ADM) has gained 48.49% over the past six months and is worth an astounding $52.86 billion on the open market.
On April 6, 2022, Stifel analyst Vincent Anderson raised his price target on Archer Daniels Midland Company (NYSE:ADM) to $100 from $80 and reiterated a Buy rating on the shares.
Archer Daniels Midland Company (NYSE:ADM) is attracting bullish views from analysts and investors alike. At the end of the fourth quarter of 2021, 41 hedge funds held long positions in the company. The fund’s collective stakes amounted to $481.23 million, up from $351.48 million in the preceding quarter with 27 positions. The hedge fund sentiment for the stock is positive.
At the close of Q4 2021, Ric Dillon’s Diamond Hill Capital was identified as the leading shareholder in Archer Daniels Midland Company (NYSE:ADM) owning over 5.7 million shares of the stock. The fund’s stakes in the company are estimated at $385.92 million which represents 1.37% of Diamond Hill Capital’s 13F portfolio.
You can also take a look at 15 Largest Dairy Companies in The World and 15 Largest Fast Food Companies in The World.
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Disclosure: None. 10 Best Plant Based Companies to Invest In is originally published on Insider Monkey.
