MGP Ingredients (NASDAQ: MGPI) is one of 50 publicly-traded companies in the “Food Processing” industry, but how does it weigh in compared to its peers? We will compare MGP Ingredients to related companies based on the strength of its analyst recommendations, valuation, profitability, earnings, institutional ownership, dividends and risk.

Dividends

MGP Ingredients pays an annual dividend of $0.16 per share and has a dividend yield of 0.3%. MGP Ingredients pays out 8.4% 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.

Valuation & Earnings

This table compares MGP Ingredients and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
MGP Ingredients $333.96 million $51.47 million 30.83
MGP Ingredients Competitors $8.38 billion $1.05 billion 22.08

MGP Ingredients’ peers have higher revenue and earnings than MGP Ingredients. MGP Ingredients 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.

Institutional and Insider Ownership

98.4% of MGP Ingredients shares are owned by institutional investors. Comparatively, 63.3% of shares of all “Food Processing” companies are owned by institutional investors. 23.5% of MGP Ingredients shares are owned by company insiders. Comparatively, 12.2% of shares of all “Food Processing” companies are owned 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.

Profitability

This table compares MGP Ingredients and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MGP Ingredients 9.33% 21.30% 13.83%
MGP Ingredients Competitors 4.10% 11.45% 4.84%

Analyst Ratings

This is a summary of current ratings for MGP Ingredients and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MGP Ingredients 0 1 1 0 2.50
MGP Ingredients Competitors 360 1664 1901 62 2.42

MGP Ingredients presently has a consensus target price of $66.00, suggesting a potential upside of 12.69%. As a group, “Food Processing” companies have a potential downside of 0.19%. Given MGP Ingredients’ stronger consensus rating and higher probable upside, research analysts clearly believe MGP Ingredients is more favorable than its peers.

Volatility & Risk

MGP Ingredients has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500. Comparatively, MGP Ingredients’ peers have a beta of 0.71, suggesting that their average stock price is 29% less volatile than the S&P 500.

Summary

MGP Ingredients beats its peers on 11 of the 15 factors compared.

About MGP Ingredients

MGP Ingredients, Inc. is a producer and supplier of distilled spirits, and specialty wheat protein and starch food ingredients. The Company’s distilled spirits include bourbon and rye whiskeys, and grain neutral spirits, including vodka and gin. The Company’s segments include distillery products and ingredient solutions. The distillery products segment consists of food grade alcohol and distillery co-products, such as distillers feed and fuel grade alcohol. The ingredient solutions segment consists of specialty starches and proteins, commodity starches and commodity proteins. The distillery products segment also includes warehouse services, including barrel put away, barrel storage, and barrel retrieval services. It is also a producer of industrial alcohol for use in both food and non-food applications. The Company’s distillery products are derived from corn and other grains (including rye, barley, wheat, barley malt and milo), and its ingredient products are derived from wheat flour.

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