The Kraft Heinz (KHC) versus Its Rivals Head-To-Head Contrast
The Kraft Heinz (NASDAQ: KHC) is one of 53 publicly-traded companies in the “Food Processing” industry, but how does it compare to its peers? We will compare The Kraft Heinz to similar businesses based on the strength of its valuation, analyst recommendations, risk, dividends, earnings, profitability and institutional ownership.
Risk and Volatility
The Kraft Heinz has a beta of 0.43, indicating that its stock price is 57% less volatile than the S&P 500. Comparatively, The Kraft Heinz’s peers have a beta of 0.70, indicating that their average stock price is 30% less volatile than the S&P 500.
Valuation & Earnings
This table compares The Kraft Heinz and its peers gross revenue, earnings per share (EPS) 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 peers. The Kraft Heinz 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 & Institutional Ownership
61.7% of The Kraft Heinz shares are held by institutional investors. Comparatively, 62.2% of shares of all “Food Processing” companies are held by institutional investors. 26.9% of The Kraft Heinz shares are held by insiders. Comparatively, 11.2% of shares of all “Food Processing” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This table compares The Kraft Heinz and its peers’ 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||3.86%||10.54%||4.56%|
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.
This is a breakdown of current ratings for The Kraft Heinz and its peers, as reported by MarketBeat.
|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 currently has a consensus target price 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 possible upside, equities research analysts plainly believe The Kraft Heinz is more favorable than its peers.
The Kraft Heinz beats its peers 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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