Financial Analysis: Pernod Ricard (PDRDF) & Its Competitors

Pernod Ricard (OTCMKTS:PDRDF) is one of 140 public companies in the “Beverages” industry, but how does it weigh in compared to its peers? We will compare Pernod Ricard to related companies based on the strength of its profitability, analyst recommendations, valuation, risk, earnings, dividends and institutional ownership.

Dividends

Pernod Ricard pays an annual dividend of C$1.67 per share and has a dividend yield of 2.0%. Pernod Ricard pays out 43.7% of its earnings in the form of a dividend. As a group, “Beverages” companies pay a dividend yield of 3.0% and pay out 49.0% of their earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Pernod Ricard and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pernod Ricard	2	0	0	0	1.00
Pernod Ricard Competitors	1249	4214	5635	221	2.43

As a group, “Beverages” companies have a potential upside of 10.94%. Given Pernod Ricard’s peers stronger consensus rating and higher probable upside, analysts plainly believe Pernod Ricard has less favorable growth aspects than its peers.

Institutional and Insider Ownership

39.1% of Pernod Ricard shares are held by institutional investors. Comparatively, 36.7% of shares of all “Beverages” companies are held by institutional investors. 19.0% of shares of all “Beverages” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Pernod Ricard	N/A	N/A	N/A
Pernod Ricard Competitors	-9.25%	-39.52%	-0.98%

Valuation and Earnings

This table compares Pernod Ricard and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Pernod Ricard	N/A	N/A	21.35
Pernod Ricard Competitors	$9.61 billion	$874.57 million	12.49

Pernod Ricard’s peers have higher revenue and earnings than Pernod Ricard. Pernod Ricard 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

Pernod Ricard peers beat Pernod Ricard on 7 of the 13 factors compared.

About Pernod Ricard

Pernod Ricard SA produces and sells wines and spirits worldwide. The company offers whiskey, vodka, gin, rum, liqueur and bitters, champagne, tequila and mezcal, and aperitif under the brands 100 Pipers, Aberlour, Absolut, Absolut Elyx, Altos, ARARAT, Augier, Avion, Ballantine's, Becherovka, Beefeater, Blenders Pride, Brancott Estate, Campo Viejo, Ceder's, Chivas, Church Road, Clan Campbell, Del Maguey, George Wyndham, Green Spot, Havana Club, Imperial, Imperial Blue, Italicus, J.P. Wiser's, Jacob's Creek, Jameson, Jefferson's, Kahlúa, Kenwood, KI NO BI, Lillet, Long John, L'Orbe, Lot No. 40, Malfy, Malibu, Martell, Method & Madness, Midleton Very Rare, Minttu, Monkey 47, Mumm, Olmeca, Ostoya, Passport Scotch, Pastis 51, Pernod, Perrier-Jouët, Plymouth Gin, Powers, Rabbit Hole, Ramazzotti, Redbreast, Ricard, Royal Salute, Royal Stag, Scapa, Seagram's Gin, Secret Speyside, Smooth Ambler, Something Special, St Hugo, Stoneleigh, Suze, The Glenlivet, TX, Wyborowa, and Ysios. It also provides non-alcoholic beverages under the brands Ceder's, Suze Tonic 0%, Cinzano Spritz 0%, Pacific, Campo Viejo Sparkling 0%, and Jacob's Creek Unvined. Pernod Ricard SA was founded in 1805 and is headquartered in Paris, France.