Critical Review: General Mills (GIS) vs. Its Competitors
General Mills (NYSE: GIS) is one of 50 publicly-traded companies in the “Food Processing” industry, but how does it compare to its competitors? We will compare General Mills to similar companies based on the strength of its risk, earnings, institutional ownership, valuation, dividends, analyst recommendations and profitability.
Earnings and Valuation
This table compares General Mills and its competitors revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|General Mills||$15.62 billion||$3.41 billion||18.70|
|General Mills Competitors||$8.38 billion||$1.05 billion||22.18|
General Mills has higher revenue and earnings than its competitors. General Mills is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
This is a breakdown of recent recommendations for General Mills and its competitors, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|General Mills Competitors||359||1663||1901||62||2.42|
General Mills currently has a consensus price target of $57.86, indicating a potential upside of 10.90%. As a group, “Food Processing” companies have a potential downside of 0.14%. Given General Mills’ higher probable upside, equities analysts plainly believe General Mills is more favorable than its competitors.
This table compares General Mills and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|General Mills Competitors||4.09%||11.44%||4.83%|
Insider & Institutional Ownership
69.4% of General Mills shares are owned by institutional investors. Comparatively, 63.3% of shares of all “Food Processing” companies are owned by institutional investors. 1.4% of General Mills shares are owned by insiders. Comparatively, 12.2% of shares of all “Food Processing” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Risk & Volatility
General Mills has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500. Comparatively, General Mills’ competitors have a beta of 0.71, meaning that their average share price is 29% less volatile than the S&P 500.
General Mills pays an annual dividend of $1.96 per share and has a dividend yield of 3.8%. General Mills pays out 70.3% of its earnings in the form of a dividend. As a group, “Food Processing” companies pay a dividend yield of 2.5% and pay out 58.4% of their earnings in the form of a dividend. General Mills has raised its dividend for 13 consecutive years.
General Mills beats its competitors on 8 of the 15 factors compared.
General Mills Company Profile
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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