Contrasting The Kraft Heinz (KHC) & Its Competitors
The Kraft Heinz (NASDAQ: KHC) is one of 53 public companies in the “Food Processing” industry, but how does it weigh in compared to its competitors? We will compare The Kraft Heinz to related businesses based on the strength of its dividends, analyst recommendations, valuation, earnings, institutional ownership, profitability and risk.
Insider and Institutional Ownership
61.7% of The Kraft Heinz shares are owned by institutional investors. Comparatively, 62.2% of shares of all “Food Processing” companies are owned by institutional investors. 26.9% of The Kraft Heinz 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 hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Volatility & Risk
The Kraft Heinz has a beta of 0.43, suggesting that its stock price is 57% less volatile than the S&P 500. Comparatively, The Kraft Heinz’s competitors have a beta of 0.70, suggesting that their average stock price is 30% less volatile than the S&P 500.
The Kraft Heinz pays an annual dividend of $2.50 per share and has a dividend yield of 3.1%. The Kraft Heinz pays out 77.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Food Processing” companies pay a dividend yield of 2.5% and pay out 59.0% of their earnings in the form of a dividend.
Earnings and Valuation
This table compares The Kraft Heinz and its competitors top-line revenue, earnings per share and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|The Kraft Heinz||$26.49 billion||$3.63 billion||24.83|
|The Kraft Heinz Competitors||$12.23 billion||$609.13 million||333.92|
The Kraft Heinz has higher revenue and earnings than its competitors. The Kraft Heinz is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
This table compares The Kraft Heinz and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|The Kraft Heinz||15.03%||7.49%||3.63%|
|The Kraft Heinz Competitors||3.72%||10.38%||4.50%|
This is a breakdown of recent recommendations for The Kraft Heinz and its competitors, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|The Kraft Heinz||0||4||10||0||2.71|
|The Kraft Heinz Competitors||293||1662||2016||56||2.46|
The Kraft Heinz presently has a consensus price target of $92.54, suggesting a potential upside of 16.08%. As a group, “Food Processing” companies have a potential downside of 1.62%. Given The Kraft Heinz’s stronger consensus rating and higher probable upside, equities analysts clearly believe The Kraft Heinz is more favorable than its competitors.
The Kraft Heinz beats its competitors on 8 of the 15 factors compared.
The Kraft Heinz Company Profile
The Kraft Heinz Company is a food and beverage company. The Company is engaged in the manufacturing and marketing of food and beverage products, including condiments and sauces, cheese and dairy, meals, meats, refreshment beverages, coffee and other grocery products. The Company’s segments include the United States, Canada and Europe. The Company’s remaining businesses are combined as Rest of World. The Rest of World consists of Latin America and Asia, Middle East and Africa (AMEA). The Company provides products for various occasions whether at home, in restaurants or on the go. The Company’s brands include Heinz, Kraft, Oscar Mayer, Philadelphia, Planters, Velveeta, Lunchables, Maxwell House, Capri Sun, and Ore-Ida. The Company’s products are sold through its own sales organizations and through independent brokers, agents and distributors to chain, wholesale, cooperative and independent grocery accounts, convenience stores, drug stores, value stores, bakeries and pharmacies.
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