Contrasting Conagra Brands (CAG) and Its Competitors
Conagra Brands (NYSE: CAG) is one of 41 public companies in the “Food Processing” industry, but how does it compare to its peers? We will compare Conagra Brands to related businesses based on the strength of its analyst recommendations, risk, institutional ownership, profitability, earnings, valuation and dividends.
Conagra Brands pays an annual dividend of $0.85 per share and has a dividend yield of 2.4%. Conagra Brands pays out 61.2% of its earnings in the form of a dividend. As a group, “Food Processing” companies pay a dividend yield of 2.5% and pay out 59.2% of their earnings in the form of a dividend. Conagra Brands lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.
Earnings & Valuation
This table compares Conagra Brands and its peers revenue, earnings per share and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|Conagra Brands||$7.83 billion||$639.30 million||25.06|
|Conagra Brands Competitors||$10.84 billion||$602.95 million||428.85|
Conagra Brands’ peers have higher revenue, but lower earnings than Conagra Brands. Conagra Brands is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Insider and Institutional Ownership
79.3% of Conagra Brands shares are owned by institutional investors. Comparatively, 63.2% of shares of all “Food Processing” companies are owned by institutional investors. 0.8% of Conagra Brands shares are owned by company insiders. Comparatively, 11.2% of shares of all “Food Processing” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This is a breakdown of recent ratings and recommmendations for Conagra Brands and its peers, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Conagra Brands Competitors||286||1615||1944||52||2.45|
Conagra Brands currently has a consensus target price of $40.78, indicating a potential upside of 17.04%. As a group, “Food Processing” companies have a potential upside of 0.11%. Given Conagra Brands’ stronger consensus rating and higher possible upside, research analysts clearly believe Conagra Brands is more favorable than its peers.
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 Competitors||3.86%||10.24%||4.49%|
Volatility and Risk
Conagra Brands has a beta of 0.33, suggesting that its stock price is 67% less volatile than the S&P 500. Comparatively, Conagra Brands’ peers have a beta of 0.66, suggesting that their average stock price is 34% less volatile than the S&P 500.
Conagra Brands beats its peers on 8 of the 15 factors compared.
Conagra Brands Company Profile
Conagra Brands, Inc., formerly ConAgra Foods, Inc., operates as a packaged food company. The Company operates through two segments: Consumer Foods and Commercial Foods. The Company sells branded and customized food products, as well as commercially branded foods. It also supplies vegetable, spice and grain products to a range of restaurants, foodservice operators and commercial customers. Conagra Foodservice offers products to restaurants, retailers, commercial customers and other foodservice suppliers. The Company also operates in the countries outside the United States, such as Canada and Mexico. The Company’s brands include Marie Callender’s, Healthy Choice, Slim Jim, Hebrew National, Orville Redenbacher’s, Peter Pan, Reddi-wip, PAM, Snack Pack, Banquet, Chef Boyardee, Egg Beaters, Rosarita, Fleischmann’s and Hunt’s. The Company sells its products in grocery, convenience, mass merchandise and club stores.
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