Kellogg (K) vs. Its Peers Financial Analysis
Kellogg (NYSE: K) is one of 50 publicly-traded companies in the “Food Processing” industry, but how does it weigh in compared to its competitors? We will compare Kellogg to related companies based on the strength of its earnings, risk, institutional ownership, profitability, valuation, analyst recommendations and dividends.
Kellogg pays an annual dividend of $2.16 per share and has a dividend yield of 3.5%. 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 2.5% and pay out 60.1% of their earnings in the form of a dividend. Kellogg has increased its dividend for 12 consecutive years.
This is a breakdown of recent ratings and target prices for Kellogg and its competitors, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Kellogg presently has a consensus price target of $73.90, suggesting a potential upside of 18.45%. As a group, “Food Processing” companies have a potential downside of 2.40%. Given Kellogg’s higher probable upside, research analysts plainly believe Kellogg is more favorable than its competitors.
This table compares Kellogg and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Kellogg and its competitors top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Kellogg||$12.79 billion||$2.27 billion||28.23|
|Kellogg Competitors||$8.38 billion||$1.05 billion||22.48|
Kellogg has higher revenue and earnings than its competitors. Kellogg is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
Institutional and Insider Ownership
85.4% of Kellogg shares are owned by institutional investors. Comparatively, 63.6% of shares of all “Food Processing” companies are owned by institutional investors. 1.3% of Kellogg 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 endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Risk & Volatility
Kellogg has a beta of 0.48, suggesting that its stock price is 52% less volatile than the S&P 500. Comparatively, Kellogg’s competitors have a beta of 0.72, suggesting that their average stock price is 28% less volatile than the S&P 500.
Kellogg beats its competitors on 9 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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