AWB and Elders are in many ways similar businesses. They have a national presence, are well-known brands and act as a one-stop shop for rural merchandise and services.
In recent years they have also been mismanaged and later hired new management teams who have carried out restructuring programs, according to the The Australian Financial Review.
AWB’s restructure, led by chief executive Gordon Davis, is farther along the track than Elders, which is being run by Malcolm Jackman.
RBS Morgans analyst Belinda Moore has a “buy” on both stocks, but she says an investor taking a medium to longer term view should look at Elders, because it has only just started its turnaround program and it will be two to three years before it delivers benefits.
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