Lancaster Colony (NASDAQ: LANC) is one of 103 publicly-traded companies in the “FOOD” industry, but how does it compare to its peers? We will compare Lancaster Colony to related businesses based on the strength of its dividends, risk, valuation, analyst recommendations, earnings, profitability and institutional ownership.

Dividends

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Lancaster Colony pays an annual dividend of $2.40 per share and has a dividend yield of 2.0%. Lancaster Colony pays out 55.7% of its earnings in the form of a dividend. As a group, “FOOD” companies pay a dividend yield of 2.0% and pay out 35.4% of their earnings in the form of a dividend. Lancaster Colony has raised its dividend for 55 consecutive years. Lancaster Colony lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Institutional and Insider Ownership

53.2% of Lancaster Colony shares are owned by institutional investors. Comparatively, 57.0% of shares of all “FOOD” companies are owned by institutional investors. 31.9% of Lancaster Colony shares are owned by insiders. Comparatively, 17.2% of shares of all “FOOD” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Lancaster Colony and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lancaster Colony 9.84% 19.65% 15.67%
Lancaster Colony Competitors -115.51% -4.10% 1.19%

Analyst Recommendations

This is a breakdown of current recommendations for Lancaster Colony and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lancaster Colony 0 0 3 0 3.00
Lancaster Colony Competitors 628 2726 2785 115 2.38

Lancaster Colony presently has a consensus price target of $153.00, suggesting a potential upside of 28.26%. As a group, “FOOD” companies have a potential upside of 14.37%. Given Lancaster Colony’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Lancaster Colony is more favorable than its peers.

Earnings & Valuation

This table compares Lancaster Colony and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Lancaster Colony $1.20 billion $115.31 million 27.68
Lancaster Colony Competitors $7.59 billion $478.54 million 15.62

Lancaster Colony’s peers have higher revenue and earnings than Lancaster Colony. Lancaster Colony 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.

Volatility & Risk

Lancaster Colony has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500. Comparatively, Lancaster Colony’s peers have a beta of 0.68, suggesting that their average share price is 32% less volatile than the S&P 500.

Summary

Lancaster Colony beats its peers on 9 of the 15 factors compared.

Lancaster Colony Company Profile

Lancaster Colony Corporation is a manufacturer and marketer of specialty food products for the retail and foodservice channels. The Company’s food products include Salad dressings and sauces, Vegetable dips and fruit dips, Frozen garlic breads, Frozen Parkerhouse style yeast rolls and dinner rolls, Premium dry egg noodles, Frozen specialty noodles, Croutons and salad toppings, Flatbread wraps and pizza crusts, and Caviar. Its brands include Marzetti, Marzetti Simply Dressed, Cardini’s, Girard’s, Katherine’s Kitchen, New York BRAND Bakery, Mamma Bella’s, Sister Schubert’s, Mary B’s, Inn Maid, Amish Kitchen, Reames, Aunt Vi’s, Flatout and Romanoff. It manufactures and sells other products pursuant to brand license agreements, including Olive Garden dressing, Jack Daniel’s mustards and Hungry Girl flatbreads. A portion of its sales are dressing packets, frozen specialty noodles, pasta and flatbreads sold to industrial customers for use as ingredients or components in their products.

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