Mondelez International (MDLZ) versus The Competition Critical Analysis

Mondelez International (NASDAQ:MDLZ) is one of 328 public companies in the “Food Products” industry, but how does it compare to its peers? We will compare Mondelez International to related companies based on the strength of its valuation, profitability, earnings, risk, institutional ownership, analyst recommendations and dividends.

Analyst Ratings

This is a breakdown of current recommendations for Mondelez International and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mondelez International	0	10	17	0	2.63
Mondelez International Competitors	2449	8300	8375	404	2.34

Mondelez International presently has a consensus price target of $69.30, suggesting a potential upside of 4.97%. As a group, “Food Products” companies have a potential upside of 17.90%. Given Mondelez International’s peers higher possible upside, analysts plainly believe Mondelez International has less favorable growth aspects than its peers.

Dividends

Mondelez International pays an annual dividend of $2.08 per share and has a dividend yield of 3.2%. Mondelez International pays out 65.6% of its earnings in the form of a dividend. As a group, “Food Products” companies pay a dividend yield of 12.4% and pay out 29.5% of their earnings in the form of a dividend. Mondelez International has raised its dividend for 13 consecutive years. Mondelez International lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares Mondelez International and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mondelez International	10.22%	14.18%	5.21%
Mondelez International Competitors	-12.76%	-127.70%	-1.99%

Institutional & Insider Ownership

78.3% of Mondelez International shares are owned by institutional investors. Comparatively, 38.8% of shares of all “Food Products” companies are owned by institutional investors. 0.5% of Mondelez International shares are owned by insiders. Comparatively, 18.4% of shares of all “Food Products” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

Mondelez International has a beta of 0.34, indicating that its share price is 66% less volatile than the S&P 500. Comparatively, Mondelez International’s peers have a beta of -3.84, indicating that their average share price is 484% less volatile than the S&P 500.

Valuation and Earnings

This table compares Mondelez International and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Mondelez International	$38.54 billion	$2.45 billion	20.83
Mondelez International Competitors	$15.47 billion	$700.98 million	-2,425.89

Mondelez International has higher revenue and earnings than its peers. Mondelez International 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.

Summary

Mondelez International beats its peers on 10 of the 15 factors compared.

About Mondelez International

Mondelez International, Inc., through its subsidiaries, manufactures, markets, and sells snack food and beverage products in the Latin America, North America, Asia, the Middle East, Africa, and Europe. It provides biscuits and baked snacks, including cookies, crackers, salted snacks, snack bars, and cakes and pastries; chocolates; and gums and candies, as well as various cheese and grocery, and powdered beverage products. The company's brand portfolio includes Oreo, Ritz, LU, CLIF Bar, and Tate's Bake Shop biscuits and baked snacks, as well as Cadbury Dairy Milk, Milka, and Toblerone chocolate. It serves supermarket chains, wholesalers, supercenters, club stores, mass merchandisers, distributors, convenience stores, gasoline stations, drug stores, value stores, and other retail food outlets through direct store delivery, company-owned and satellite warehouses, distribution centers, third party distributors, and other facilities, as well as through independent sales offices and agents. The company also sells products directly to businesses and consumers through e-retail platforms, retailer digital platforms, as well as through its direct-to-consumer websites and social media platforms. Mondelez International, Inc. was formerly known as Kraft Foods Inc. and changed its name to Mondelez International, Inc. in October 2012. The company was incorporated in 2000 and is headquartered in Chicago, Illinois.