Hormel Foods (NYSE: HRL) is one of 6 public companies in the “Meat packing plants” industry, but how does it weigh in compared to its competitors? We will compare Hormel Foods to similar companies based on the strength of its valuation, earnings, analyst recommendations, profitability, risk, institutional ownership and dividends.
Institutional & Insider Ownership
39.4% of Hormel Foods shares are owned by institutional investors. Comparatively, 40.8% of shares of all “Meat packing plants” companies are owned by institutional investors. 3.5% of Hormel Foods shares are owned by company insiders. Comparatively, 4.9% of shares of all “Meat packing plants” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
This table compares Hormel Foods and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Hormel Foods Competitors||4.24%||7.59%||4.99%|
This is a summary of recent ratings for Hormel Foods and its competitors, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Hormel Foods Competitors||32||119||86||5||2.26|
Hormel Foods currently has a consensus target price of $34.33, suggesting a potential upside of 0.04%. As a group, “Meat packing plants” companies have a potential upside of 116.76%. Given Hormel Foods’ competitors higher probable upside, analysts clearly believe Hormel Foods has less favorable growth aspects than its competitors.
Earnings & Valuation
This table compares Hormel Foods and its competitors revenue, earnings per share and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Hormel Foods||$9.17 billion||$846.73 million||21.86|
|Hormel Foods Competitors||$12.27 billion||$488.10 million||3.39|
Hormel Foods’ competitors have higher revenue, but lower earnings than Hormel Foods. Hormel Foods is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
Hormel Foods pays an annual dividend of $0.75 per share and has a dividend yield of 2.2%. Hormel Foods pays out 47.8% of its earnings in the form of a dividend. As a group, “Meat packing plants” companies pay a dividend yield of 1.6% and pay out 22.2% of their earnings in the form of a dividend. Hormel Foods has raised its dividend for 51 consecutive years.
Volatility & Risk
Hormel Foods has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500. Comparatively, Hormel Foods’ competitors have a beta of 0.82, meaning that their average stock price is 18% less volatile than the S&P 500.
Hormel Foods beats its competitors on 8 of the 15 factors compared.
About Hormel Foods
Hormel Foods Corporation is engaged in the production of a range of meat and food products. The Company operates through four segments: Grocery Products, which is engaged in the processing, marketing and sale of shelf-stable food products sold for the retail market and health and also consists of nutrition products, including Muscle Milk protein products.; Refrigerated Foods, which consists of the processing, marketing and sale of branded and unbranded pork, beef, chicken and turkey products for retail, foodservice and fresh product customers; Jennie-O Turkey Store (JOTS), which consists of the processing, marketing and sale of branded and unbranded turkey products for retail, foodservice and fresh product customers; and International & Other, which includes Hormel Foods International Corporation, which manufactures, markets and sells the Company products internationally.
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