Campbell Soup (NYSE: CPB) is one of 50 publicly-traded companies in the “Food Processing” industry, but how does it weigh in compared to its rivals? We will compare Campbell Soup to similar businesses based on the strength of its valuation, profitability, institutional ownership, risk, earnings, analyst recommendations and dividends.

Volatility & Risk

Campbell Soup has a beta of 0.36, meaning that its stock price is 64% less volatile than the S&P 500. Comparatively, Campbell Soup’s rivals have a beta of 0.72, meaning that their average stock price is 28% less volatile than the S&P 500.

Valuation and Earnings

This table compares Campbell Soup and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Campbell Soup $7.89 billion $1.99 billion 16.20
Campbell Soup Competitors $8.38 billion $1.05 billion 22.45

Campbell Soup’s rivals have higher revenue, but lower earnings than Campbell Soup. Campbell Soup is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Institutional & Insider Ownership

44.3% of Campbell Soup shares are held by institutional investors. Comparatively, 63.5% of shares of all “Food Processing” companies are held by institutional investors. 37.3% of Campbell Soup shares are held by company insiders. Comparatively, 12.2% of shares of all “Food Processing” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

Campbell Soup pays an annual dividend of $1.40 per share and has a dividend yield of 3.0%. Campbell Soup pays out 48.4% of its earnings in the form of a dividend. As a group, “Food Processing” companies pay a dividend yield of 2.6% and pay out 60.1% of their earnings in the form of a dividend. Campbell Soup is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of current ratings for Campbell Soup and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Campbell Soup 4 7 0 0 1.64
Campbell Soup Competitors 360 1674 1911 62 2.42

Campbell Soup presently has a consensus price target of $51.50, indicating a potential upside of 10.00%. As a group, “Food Processing” companies have a potential upside of 0.38%. Given Campbell Soup’s higher possible upside, equities research analysts clearly believe Campbell Soup is more favorable than its rivals.

Profitability

This table compares Campbell Soup and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Campbell Soup 11.24% 59.84% 12.07%
Campbell Soup Competitors 4.08% 11.36% 4.77%

Summary

Campbell Soup beats its rivals on 8 of the 15 factors compared.

Campbell Soup Company Profile

Campbell Soup Company is a food company, which manufactures and markets food products. The Company’s segments include Americas Simple Meals and Beverages; Global Biscuits and Snacks, and Campbell Fresh. The Americas Simple Meals and Beverages segment includes the retail and food service channel businesses. The segment includes the products, such as Campbell’s condensed and ready-to-serve soups; Swanson broth and stocks; Prego pasta sauces; Pace Mexican sauces; Campbell’s gravies, pasta, beans and dinner sauces; Plum food and snacks; V8 juices and beverages, and Campbell’s tomato juice. The Global Biscuits and Snacks segment includes Pepperidge Farm cookies, crackers, bakery and frozen products; Arnott’s biscuits, and Kelsen cookies. The Campbell Fresh segment includes Bolthouse Farms fresh carrots, carrot ingredients, refrigerated beverages and refrigerated salad dressings; Garden Fresh Gourmet salsa, hummus, dips and tortilla chips, and the United States refrigerated soup business.

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