Nestlé (OTCMKTS: NSRGY) is one of 25 public companies in the “Food & kindred products” industry, but how does it compare to its competitors? We will compare Nestlé to related businesses based on the strength of its risk, profitability, valuation, dividends, earnings, analyst recommendations and institutional ownership.
Nestlé pays an annual dividend of $2.52 per share and has a dividend yield of 2.0%. Nestlé pays out 56.1% of its earnings in the form of a dividend. As a group, “Food & kindred products” companies pay a dividend yield of 2.6% and pay out 52.6% of their earnings in the form of a dividend. Nestlé lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.
1.1% of Nestlé shares are held by institutional investors. Comparatively, 58.4% of shares of all “Food & kindred products” companies are held by institutional investors. 13.4% of shares of all “Food & kindred products” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This table compares Nestlé and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Nestlé and its competitors revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Nestlé||$89.95 billion||$13.05 billion||28.24|
|Nestlé Competitors||$9.53 billion||$1.14 billion||8.89|
Nestlé has higher revenue and earnings than its competitors. Nestlé 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.
This is a breakdown of recent ratings and price targets for Nestlé and its competitors, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
As a group, “Food & kindred products” companies have a potential downside of 1.85%. Given Nestlé’s competitors higher probable upside, analysts clearly believe Nestlé has less favorable growth aspects than its competitors.
Volatility & Risk
Nestlé has a beta of 0.37, suggesting that its stock price is 63% less volatile than the S&P 500. Comparatively, Nestlé’s competitors have a beta of 0.91, suggesting that their average stock price is 9% less volatile than the S&P 500.
Nestlé competitors beat Nestlé on 10 of the 15 factors compared.
NestlÃ© S.A., together with its subsidiaries, operates as a food and beverage company. The company operates through Zone Europe, Middle East and North Africa; Zone Americas; Zone Asia, Oceania and sub-Saharan Africa; and NestlÃ© Waters segments. It offers baby foods under the Cerelac, Gerber, and NaturNes brands; bottled water under the NestlÃ© Pure Life, Perrier, Poland Spring, and S.Pellegrino brands; cereals under the Fitness, Nesquik, cheerios, and Lion Cereals brands; and chocolate and confectionery products under the KitKat, Nestle L'atelier, Nestle Toll House, Milkybar, Smarties, Quality Street, Aero, Garoto, Orion, and Cailler brands. The company also provides coffee products under the NescafÃ© original, Nespresso, NescafÃ© Dolce Gusto, NescafÃ©, NescafÃ© Original 3 in 1, Coffee-Mate, NescafÃ© Gold, and NescafÃ© Cappuccino brands; culinary, chilled, and frozen foods under the Maggi, Hot Pockets, Stouffer's, Thomy, Jacks, TombStone, Buitoni, DiGiorno, and Lean Cuisine brands; dairy products under the Carnation, Nido, Coffee-Mate, and La LaitiÃ¨re brands; and drinks under the Nesquik, Nestea, and Milo brands. In addition, it offers food service products under the Milo, NescafÃ©, Maggi, Chef, Nestea, Stouffer's, Chef-Mate, Sjora, Minor's, and Lean Cuisine brand names; healthcare nutrition products under the Boost, Peptamen, Resource, and Nutren Junior brands; ice cream products under the Dreyer's, MÃ¶venpick, HÃ¤agen-Dazs, NestlÃ© Ice Cream, and ExtrÃªme brands; and pet care products under the Purina, ONE, Alpo, Felix, Pro Plan, Cat Chow, Fancy Feast, Chef Michael's, Bakers, Friskies, Dog Chow, Beneful, and Gourmet brands. Further, it provides coffee creamers under the Starbucks brand. The company was founded in 1866 and is headquartered in Vevey, Switzerland.
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