Syngenta: Room to grow, says WSJ

Syngenta bets that if it builds the right genetically modified seeds, profits will come — and some investors like its chances, says the writer of this WSJ article (sub. reqd.).

It offers a cheaper way into the booming $56 billion agricultural-chemical industry than its biggest U.S. rival, Monsanto Co.

Corn prices have risen 66 percent this year. Meanwhile, shares of Monsanto are up 21 percent, and DuPont shares are up 11 percent.

Syngenta, based in Basel, is up 38 percent in the U.S.

Syngenta still looks like a bargain, says the author. With a market value of about $25 billion, Monsanto is trading at about 29 times estimated per-share earnings for the next four quarters. Syngenta, with a market value of about $17 billion, is trading at slightly less than 20 times estimated earnings.

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