Yum China (NYSE: YUMC) is one of 24 publicly-traded companies in the “Quick Service Restaurants” industry, but how does it compare to its competitors? We will compare Yum China to related businesses based on the strength of its analyst recommendations, profitability, institutional ownership, dividends, earnings, valuation and risk.
Insider & Institutional Ownership
86.6% of Yum China shares are owned by institutional investors. Comparatively, 80.8% of shares of all “Quick Service Restaurants” companies are owned by institutional investors. 0.2% of Yum China shares are owned by company insiders. Comparatively, 15.2% of shares of all “Quick Service Restaurants” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This table compares Yum China and its competitors revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Yum China||$6.75 billion||$502.00 million||27.02|
|Yum China Competitors||$3.20 billion||$441.82 million||443.65|
Yum China has higher revenue and earnings than its competitors. Yum China 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.
Yum China pays an annual dividend of $0.10 per share and has a dividend yield of 0.2%. Yum China pays out 6.6% of its earnings in the form of a dividend. As a group, “Quick Service Restaurants” companies pay a dividend yield of 1.5% and pay out 44.3% of their earnings in the form of a dividend.
This is a summary of current ratings for Yum China and its competitors, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Yum China Competitors||259||1415||1720||81||2.47|
Yum China presently has a consensus price target of $44.41, suggesting a potential upside of 8.85%. As a group, “Quick Service Restaurants” companies have a potential upside of 12.81%. Given Yum China’s competitors higher possible upside, analysts clearly believe Yum China has less favorable growth aspects than its competitors.
This table compares Yum China and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Yum China Competitors||6.63%||13.77%||9.28%|
Yum China beats its competitors on 9 of the 14 factors compared.
Yum China Company Profile
Yum China Holdings, Inc. is a restaurant company. The Company’s segments include KFC, Pizza Hut Casual Dining, and All Other Segments, including Pizza Hut Home Service, East Dawning, Little Sheep and Taco Bell. As of December 31, 2016, the Company had over 7,500 restaurants in China. Its restaurant base consists of various restaurant concepts. The Company’s restaurants in each of its concept offer consumers the ability to dine in and/or carry out food. In addition, KFC, Pizza Hut Casual Dining, Pizza Hut Home Service and East Dawning offer delivery service. KFC is the quick-service restaurant (QSR) brand. Pizza Hut Casual Dining is the casual dining restaurant (CDR) brand. As of December 31, 2016, the Company had over 360 Pizza Hut Home Service units in over 50 cities in China. The Little Sheep concept specializes in Hot Pot cooking. East Dawning is a Chinese food QSR brand. Taco Bell is a QSR brand specializing in Mexican-style food.
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