General Mills (NYSE: GIS) is one of 50 public companies in the “Food Processing” industry, but how does it weigh in compared to its peers? We will compare General Mills to similar businesses based on the strength of its valuation, dividends, risk, analyst recommendations, earnings, profitability and institutional ownership.

Dividends

General Mills pays an annual dividend of $1.96 per share and has a dividend yield of 3.5%. General Mills pays out 70.8% of its earnings in the form of a dividend. As a group, “Food Processing” companies pay a dividend yield of 2.4% and pay out 58.4% of their earnings in the form of a dividend. General Mills has increased its dividend for 13 consecutive years.

Insider & Institutional Ownership

69.5% of General Mills shares are held by institutional investors. Comparatively, 63.5% of shares of all “Food Processing” companies are held by institutional investors. 1.4% of General Mills shares are held by company insiders. Comparatively, 12.2% of shares of all “Food Processing” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares General Mills and its peers gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
General Mills $15.62 billion $3.41 billion 20.14
General Mills Competitors $8.38 billion $1.04 billion 22.57

General Mills has higher revenue and earnings than its peers. General Mills is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Volatility & Risk

General Mills has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500. Comparatively, General Mills’ peers have a beta of 0.71, indicating that their average share price is 29% less volatile than the S&P 500.

Profitability

This table compares General Mills and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
General Mills 10.61% 38.97% 8.47%
General Mills Competitors 4.09% 11.51% 4.84%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for General Mills and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
General Mills 3 12 1 0 1.88
General Mills Competitors 358 1653 1888 61 2.42

General Mills presently has a consensus price target of $58.62, indicating a potential upside of 5.05%. As a group, “Food Processing” companies have a potential downside of 0.66%. Given General Mills’ higher possible upside, equities analysts clearly believe General Mills is more favorable than its peers.

Summary

General Mills beats its peers on 8 of the 15 factors compared.

About General Mills

General Mills, Inc. is a manufacturer and marketer of branded consumer foods sold through retail stores. The Company is a supplier of branded and unbranded food products to the North American foodservice and commercial baking industries. The Company has three segments: U.S. Retail, International, and Convenience Stores and Foodservice. Its products are marketed under various brands, which include Annie’s and Betty Crocker. The Company’s U.S. Retail segment reflects business with a range of grocery stores, mass merchandisers, membership stores, natural food chains, drug, dollar and discount chains, and e-commerce grocery providers operating throughout the United States. The International segment consists of retail and foodservice businesses outside of the United States. The Convenience Stores and Foodservice segment’s product categories include ready-to-eat cereals, snacks, refrigerated yogurt, frozen meals, unbaked and fully baked frozen dough products, and baking mixes.

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