Nestlé (NSRGY) and The Competition Head-To-Head Review

Nestlé (OTCMKTS: NSRGY) is one of 27 public companies in the “Food & kindred products” industry, but how does it weigh in compared to its rivals? We will compare Nestlé to related companies based on the strength of its analyst recommendations, dividends, earnings, valuation, risk, profitability and institutional ownership.

Volatility and Risk

Nestlé has a beta of 0.37, indicating that its stock price is 63% less volatile than the S&P 500. Comparatively, Nestlé’s rivals have a beta of 0.91, indicating that their average stock price is 9% less volatile than the S&P 500.

Valuation and Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Nestlé $89.95 billion $13.05 billion 28.22
Nestlé Competitors $9.53 billion $1.14 billion 8.57

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

Analyst Ratings

This is a summary of current recommendations and price targets for Nestlé and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nestlé 0 6 9 0 2.60
Nestlé Competitors 350 1193 1213 33 2.33

As a group, “Food & kindred products” companies have a potential upside of 7.71%. Given Nestlé’s rivals higher possible upside, analysts clearly believe Nestlé has less favorable growth aspects than its rivals.

Profitability

This table compares Nestlé and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nestlé N/A N/A N/A
Nestlé Competitors 4.62% 11.05% 4.59%

Insider and Institutional Ownership

1.1% of Nestlé shares are owned by institutional investors. Comparatively, 58.4% of shares of all “Food & kindred products” companies are owned by institutional investors. 13.4% of shares of all “Food & kindred products” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Dividends

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 2.7% and pay out 52.1% of their earnings in the form of a dividend. Nestlé lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

Nestlé rivals beat Nestlé on 10 of the 15 factors compared.

Nestlé Company Profile

Nestlé 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 Nestlé Waters segments. It offers baby foods under the Cerelac, Gerber, and NaturNes brands; bottled water under the Nestlé 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 Nescafé original, Nespresso, Nescafé Dolce Gusto, Nescafé, Nescafé Original 3 in 1, Coffee-Mate, Nescafé Gold, and Nescafé 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 Laitière brands; and drinks under the Nesquik, Nestea, and Milo brands. In addition, it offers food service products under the Milo, Nescafé, 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, Mövenpick, Häagen-Dazs, Nestlé Ice Cream, and Extrême 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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