Kellogg (K) vs. Its Competitors Head-To-Head Analysis
Kellogg (NYSE: K) is one of 50 publicly-traded companies in the “Food Processing” industry, but how does it contrast to its peers? We will compare Kellogg to similar companies based on the strength of its earnings, risk, institutional ownership, dividends, profitability, analyst recommendations and valuation.
Kellogg pays an annual dividend of $2.16 per share and has a dividend yield of 3.1%. Kellogg pays out 97.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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. Kellogg has increased its dividend for 12 consecutive years.
Earnings and Valuation
This table compares Kellogg and its peers revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Kellogg||$12.79 billion||$2.27 billion||31.05|
|Kellogg Competitors||$8.38 billion||$1.04 billion||22.63|
Kellogg has higher revenue and earnings than its peers. Kellogg is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
Risk and Volatility
Kellogg has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500. Comparatively, Kellogg’s peers have a beta of 0.71, meaning that their average share price is 29% less volatile than the S&P 500.
Insider & Institutional Ownership
85.4% of Kellogg shares are held by institutional investors. Comparatively, 63.3% of shares of all “Food Processing” companies are held by institutional investors. 1.3% of Kellogg 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 large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This is a breakdown of recent ratings and target prices for Kellogg and its peers, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Kellogg currently has a consensus target price of $74.78, suggesting a potential upside of 8.99%. As a group, “Food Processing” companies have a potential downside of 0.78%. Given Kellogg’s higher probable upside, research analysts plainly believe Kellogg is more favorable than its peers.
This table compares Kellogg and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Kellogg beats its peers on 8 of the 15 factors compared.
Kellogg Company is a manufacturer and marketer of ready-to-eat cereal and convenience foods. The Company’s principal products are ready-to-eat cereals and convenience foods, such as cookies, crackers, savory snacks, toaster pastries, cereal bars, fruit-flavored snacks, frozen waffles and veggie foods. Its segments include U.S. Morning Foods, which includes cereal, toaster pastries, health and wellness bars, and beverages; U.S. Snacks, which includes cookies, crackers, cereal bars, savory snacks and fruit-flavored snacks; U.S. Specialty, which represents food away from home channels, including food service, convenience, vending, Girl Scouts and food manufacturing; North America Other, which includes the U.S. Frozen, Kashi and Canada operating segments; Europe, which consists of European countries; Latin America, which consists of Central and South America and includes Mexico, and Asia Pacific, which consists of Sub-Saharan Africa, Australia and other Asian and Pacific markets.
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