Reviewing Sodexo (SDXOF) & Its Competitors

Dividends

Sodexo pays an annual dividend of $1.62 per share and has a dividend yield of 2.6%. Sodexo pays out 50.8% of its earnings in the form of a dividend. As a group, “Commercial Services & Supplies” companies pay a dividend yield of 2.5% and pay out 62.8% of their earnings in the form of a dividend. Sodexo is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

23.8% of Sodexo shares are held by institutional investors. Comparatively, 39.5% of shares of all “Commercial Services & Supplies” companies are held by institutional investors. 16.7% of shares of all “Commercial Services & Supplies” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Sodexo	N/A	N/A	19.70
Sodexo Competitors	$2.44 billion	$138.82 million	24.94

Sodexo’s peers have higher revenue and earnings than Sodexo. Sodexo 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sodexo	N/A	N/A	N/A
Sodexo Competitors	-61.06%	-122.76%	-1.38%

Summary

Sodexo beats its peers on 5 of the 9 factors compared.

About Sodexo

Sodexo S.A. provides food services and facilities management services worldwide. It offers various on-site services, which includes corporate services, energy and resources, government and agencies, and other services; healthcare and seniors; and learning solutions to schools and universities. The company also provides food services comprising retail service, food delivery, and meal and food vouchers, as well as digital food ordering services; savings and purchase solutions, data and digital tools, and advisory services and client support; and work-life balance and employee experience solutions. In addition, it offers facility management services, including technical service management, assets management, building maintenance, access control, deep cleaning, energy management, space planning, project management, front-of-house services, grounds maintenance, waste management, HVAC systems, mail management, commercial cleaning, workspace management, and pest control. services. The company was formerly known as Sodexho Alliance and changed its name to Sodexo S.A. in 2008. Sodexo S.A. was founded in 1966 and is headquartered in Issy-les-Moulineaux, France.