Conagra Brands (CAG) & The Competition Financial Analysis

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

Dividends

Conagra Brands pays an annual dividend of $0.70 per share and has a dividend yield of 4.8%. Conagra Brands pays out -17.6% 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. Conagra Brands has raised its dividend for 5 consecutive years.

Earnings & Valuation

This table compares Conagra Brands and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Conagra Brands	$11.24 billion	-$1.92 billion	-3.67
Conagra Brands Competitors	$7.13 billion	$712.67 million	-2,425.83

Conagra Brands has higher revenue, but lower earnings than its peers. Conagra Brands 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.

Profitability

This table compares Conagra Brands and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Conagra Brands	-16.95%	11.46%	4.51%
Conagra Brands Competitors	-12.90%	-127.90%	-2.06%

Analyst Recommendations

This is a summary of recent ratings and price targets for Conagra Brands and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Conagra Brands	5	12	1	0	1.78
Conagra Brands Competitors	2457	8309	8387	405	2.34

Conagra Brands presently has a consensus target price of $14.07, indicating a potential downside of 3.82%. As a group, “Food Products” companies have a potential upside of 16.85%. Given Conagra Brands’ peers stronger consensus rating and higher probable upside, analysts plainly believe Conagra Brands has less favorable growth aspects than its peers.

Risk and Volatility

Conagra Brands has a beta of 0.02, meaning that its share price is 98% less volatile than the S&P 500. Comparatively, Conagra Brands’ peers have a beta of -3.84, meaning that their average share price is 484% less volatile than the S&P 500.

Institutional & Insider Ownership

83.8% of Conagra Brands shares are held by institutional investors. Comparatively, 38.8% of shares of all “Food Products” companies are held by institutional investors. 0.3% of Conagra Brands shares are held by insiders. Comparatively, 18.4% of shares of all “Food Products” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Conagra Brands peers beat Conagra Brands on 8 of the 15 factors compared.

Conagra Brands Company Profile

Conagra Brands is a packaged-food company that develops, manufactures and markets products for retail, foodservice and other customers. Its offerings include frozen meals and vegetables, snacks, baking products, condiments, cooking ingredients and meat snacks. The company’s portfolio includes brands such as Birds Eye, Healthy Choice, Marie Callender’s, Duncan Hines, Slim Jim, Orville Redenbacher’s, Hunt’s, Banquet and Reddi-wip. Its products are sold primarily in the United States, as well as in international markets.