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

Profitability

This table compares Ingredion and its competitors’ 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 4.09% 11.30% 4.72%

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 Recommendations

This is a breakdown of recent recommendations for Ingredion and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ingredion 0 2 2 0 2.50
Ingredion Competitors 271 1517 1868 53 2.46

Ingredion currently has a consensus price target of $141.67, indicating a potential upside of 13.63%. As a group, “Food Processing” companies have a potential downside of 3.89%. Given Ingredion’s stronger consensus rating and higher possible upside, research analysts clearly believe Ingredion is more favorable than its competitors.

Institutional & Insider 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 endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Ingredion and its competitors gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Ingredion $5.80 billion $1.05 billion 18.75
Ingredion Competitors $8.38 billion $1.05 billion 22.39

Ingredion’s competitors have higher revenue, but lower earnings than Ingredion. Ingredion is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

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

Summary

Ingredion beats its competitors 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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