Ingredion (NYSE: INGR) is one of 50 public companies in the “Food Processing” industry, but how does it contrast to its peers? We will compare Ingredion to similar businesses based on the strength of its dividends, profitability, risk, analyst recommendations, valuation, earnings and institutional ownership.

Profitability

This table compares Ingredion and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ingredion 8.35% 20.84% 9.53%
Ingredion Competitors 3.33% 13.98% 4.62%

Insider and Institutional Ownership

83.9% of Ingredion shares are held by institutional investors. Comparatively, 63.4% of shares of all “Food Processing” companies are held by institutional investors. 1.9% of Ingredion shares are held by insiders. Comparatively, 12.2% of shares of all “Food Processing” companies are held by 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.

Valuation and Earnings

This table compares Ingredion and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Ingredion $5.80 billion $1.05 billion 18.76
Ingredion Competitors $8.38 billion $1.05 billion 22.41

Ingredion’s peers have higher revenue, but lower earnings than Ingredion. Ingredion 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.

Dividends

Ingredion pays an annual dividend of $2.40 per share and has a dividend yield of 1.9%. Ingredion pays out 36.1% of its earnings in the form of a dividend. As a group, “Food Processing” companies pay a dividend yield of 2.5% and pay out 60.1% of their earnings in the form of a dividend. Ingredion has raised its dividend for 4 consecutive years.

Analyst Ratings

This is a summary of recent recommendations for Ingredion and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ingredion 0 2 2 0 2.50
Ingredion Competitors 270 1513 1866 53 2.46

Ingredion presently has a consensus target price of $141.67, indicating a potential upside of 13.54%. As a group, “Food Processing” companies have a potential downside of 3.46%. Given Ingredion’s stronger consensus rating and higher probable upside, analysts plainly believe Ingredion is more favorable than its peers.

Risk and Volatility

Ingredion has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500. Comparatively, Ingredion’s peers have a beta of 0.72, suggesting that their average stock price is 28% less volatile than the S&P 500.

Summary

Ingredion beats its peers on 8 of the 15 factors compared.

About Ingredion

Ingredion Incorporated is an ingredients solutions provider. The Company manufactures and sells sweetener, starches, nutrition ingredients and biomaterial solutions derived from the wet milling and processing of corn and other starch-based materials to a range of industries, both domestically and internationally. It operates through four segments: North America, South America, Asia Pacific, and Europe, Middle East and Africa (EMEA). It turns corn, tapioca, potatoes, and other vegetables and fruits into ingredients and biomaterials for the food, beverage, paper and corrugating, brewing and other industries. Its product line includes animal feed products and edible corn oil. Its sweetener products include glucose syrups, high maltose syrup, high fructose corn syrup (HFCS), caramel color, dextrose, polyols, maltodextrins and glucose and syrup solids. Its starch-based products include both food-grade and industrial starches, and biomaterials. It also offers specialty ingredients.

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