Analyzing Simply Good Foods (SMPL) and Its Rivals

Simply Good Foods (NASDAQ:SMPL) is one of 328 publicly-traded companies in the “Food Products” industry, but how does it contrast to its competitors? We will compare Simply Good Foods to related businesses based on the strength of its risk, dividends, earnings, profitability, analyst recommendations, valuation and institutional ownership.

Volatility & Risk

Simply Good Foods has a beta of 0.08, suggesting that its share price is 92% less volatile than the S&P 500. Comparatively, Simply Good Foods’ competitors have a beta of -3.85, suggesting that their average share price is 485% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Simply Good Foods and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Simply Good Foods	2	9	2	0	2.00
Simply Good Foods Competitors	2449	8299	8374	404	2.34

Simply Good Foods presently has a consensus target price of $13.36, suggesting a potential upside of 10.90%. As a group, “Food Products” companies have a potential upside of 17.85%. Given Simply Good Foods’ competitors stronger consensus rating and higher possible upside, analysts clearly believe Simply Good Foods has less favorable growth aspects than its competitors.

Insider & Institutional Ownership

88.5% of Simply Good Foods shares are held by institutional investors. Comparatively, 38.8% of shares of all “Food Products” companies are held by institutional investors. 8.8% of Simply Good Foods 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 hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Simply Good Foods and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Simply Good Foods	-11.49%	9.36%	6.58%
Simply Good Foods Competitors	-13.55%	-142.54%	-2.56%

Valuation and Earnings

This table compares Simply Good Foods and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Simply Good Foods	$1.36 billion	-$155.90 million	-7.05
Simply Good Foods Competitors	$6.82 billion	$700.97 million	-2,412.79

Simply Good Foods’ competitors have higher revenue and earnings than Simply Good Foods. Simply Good Foods 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.

Summary

Simply Good Foods competitors beat Simply Good Foods on 7 of the 13 factors compared.

About Simply Good Foods

The Simply Good Foods Company operates as a consumer-packaged food and beverage company in North America and internationally. The company develops, markets, and sells snacks and meal replacements. It offers protein bars, ready-to-drink shakes, sweet and salty snacks, cookies, protein chips, and recipes under the Atkins and Quest brand names. The company also provides confectionery products, such as full-size and mini peanut butter cups, and fudgey brownie and gooey caramel candy bites, chocolatey coated peanut candies, and coconutty caramel candy bars under Atkins Endulge brand name.It distributes its products to various retail channels, such as mass merchandise, grocery and drug channels, club stores, convenience stores, gas stations, and other channels. The company also sells its products through e-commerce channels, including questnutrition.com, atkins.com, amazon.com and others. The Simply Good Foods Company was founded in 2017 and is headquartered in Denver, Colorado.