Critical Survey: Icahn Enterprises (IEP) vs. Its Rivals

Icahn Enterprises (NASDAQ: IEP) is one of 59 publicly-traded companies in the “CONGLOMERATES” industry, but how does it contrast to its peers? We will compare Icahn Enterprises to similar companies based on the strength of its risk, profitability, earnings, institutional ownership, analyst recommendations, valuation and dividends.

Insider & Institutional Ownership

How to Become a New Pot Stock Millionaire

97.7% of Icahn Enterprises shares are owned by institutional investors. Comparatively, 70.4% of shares of all “CONGLOMERATES” companies are owned by institutional investors. 90.1% of Icahn Enterprises shares are owned by insiders. Comparatively, 14.0% of shares of all “CONGLOMERATES” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings for Icahn Enterprises and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Icahn Enterprises 0 0 1 0 3.00
Icahn Enterprises Competitors 214 889 1548 40 2.53

Icahn Enterprises currently has a consensus target price of $61.00, suggesting a potential upside of 4.72%. As a group, “CONGLOMERATES” companies have a potential upside of 12.02%. Given Icahn Enterprises’ peers higher possible upside, analysts plainly believe Icahn Enterprises has less favorable growth aspects than its peers.

Dividends

Icahn Enterprises pays an annual dividend of $7.00 per share and has a dividend yield of 12.0%. Icahn Enterprises pays out 47.8% of its earnings in the form of a dividend. As a group, “CONGLOMERATES” companies pay a dividend yield of 2.8% and pay out 49.2% of their earnings in the form of a dividend. Icahn Enterprises is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Profitability

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

Net Margins Return on Equity Return on Assets
Icahn Enterprises 10.98% 23.08% 7.32%
Icahn Enterprises Competitors -3,063.77% -70.89% -49.63%

Risk and Volatility

Icahn Enterprises has a beta of 1.54, suggesting that its share price is 54% more volatile than the S&P 500. Comparatively, Icahn Enterprises’ peers have a beta of -2.59, suggesting that their average share price is 359% less volatile than the S&P 500.

Earnings and Valuation

This table compares Icahn Enterprises and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Icahn Enterprises $21.74 billion $2.43 billion 3.98
Icahn Enterprises Competitors $20.25 billion $852.49 million 1.87

Icahn Enterprises has higher revenue and earnings than its peers. Icahn Enterprises is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

Icahn Enterprises beats its peers on 13 of the 15 factors compared.

About Icahn Enterprises

Icahn Enterprises L.P. (Icahn Enterprises) is a holding company. The Company’s segments include Automotive, Energy, Metals, Railcar, Gaming, Food Packaging, Mining, Real Estate and Home Fashion. The Company’s Investment segment includes various private investment funds. The Company operates its Automotive segment through its ownership in Federal-Mogul Holdings Corporation and IEH Auto Parts Holding LLC. The Company operates Energy segment through its controlling interest in CVR Energy, Inc. It operates its Metals segment through its subsidiary, PSC Metals, Inc. The Company operates its Railcar segment through its ownership interests in American Railcar Industries, Inc. Its Food Packaging segment consists of ownership in Viskase Companies, Inc. The Company’s Real Estate operations consist of rental real estate, property development and associated resorts. It also owns a limited partner interest in Icahn Enterprises Holdings L.P. (Icahn Enterprises Holdings).

Receive News & Ratings for Icahn Enterprises Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Icahn Enterprises and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply