Critical Survey: Penford (PENX) and The Competition
Penford (NASDAQ: PENX) is one of 44 public companies in the “Food Processing” industry, but how does it contrast to its peers? We will compare Penford to related companies based on the strength of its dividends, earnings, profitability, risk, analyst recommendations, institutional ownership and valuation.
Insider and Institutional Ownership
64.0% of shares of all “Food Processing” companies are held by institutional investors. 11.2% of shares of all “Food Processing” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Penford has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500. Comparatively, Penford’s peers have a beta of 0.67, meaning that their average share price is 33% less volatile than the S&P 500.
Earnings & Valuation
This table compares Penford and its peers revenue, earnings per share and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Penford Competitors||$10.42 billion||$577.33 million||666.36|
Penford’s peers have higher revenue and earnings than Penford. Penford 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.
This is a breakdown of current ratings and recommmendations for Penford and its peers, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
As a group, “Food Processing” companies have a potential upside of 3.52%. Given Penford’s peers higher possible upside, analysts plainly believe Penford has less favorable growth aspects than its peers.
This table compares Penford and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Penford peers beat Penford on 7 of the 8 factors compared.
Penford Company Profile
Penford Corporation (Penford) is a developer, manufacturer and marketer of natural-based ingredient systems for food and industrial applications, including fuel grade ethanol. The Company has research and development capabilities, which are used in understanding the complex chemistry of carbohydrate-based materials and in developing applications to address customer needs. Penford operates in two business segments: Industrial Ingredients and Food Ingredients. Industrial Ingredients segment is a supplier of chemically modified starches to the paper and packaging industries. Industrial Ingredients also produces food grade corn starch for sale by the Company’s Food Ingredients business. Food Ingredients segment is a developer and manufacturer of specialty starches and dextrins to the food manufacturing and food service industries. This business is engaged is in leveraging the inherent characteristics from potato, corn, tapioca and rice to help improve its customers’ product performance.
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