Ingredion (NYSE:INGR) versus Its Competitors Financial Contrast

Ingredion (NYSE: INGR) is one of 53 publicly-traded companies in the “Food Processing” industry, but how does it contrast to its rivals? We will compare Ingredion to similar companies based on the strength of its earnings, analyst recommendations, dividends, valuation, institutional ownership, risk and profitability.

Insider and Institutional Ownership

84.1% of Ingredion shares are owned by institutional investors. Comparatively, 61.4% of shares of all “Food Processing” companies are owned by institutional investors. 1.9% of Ingredion shares are owned by insiders. Comparatively, 11.7% of shares of all “Food Processing” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Ingredion 8.73% 20.92% 9.68%
Ingredion Competitors 3.71% 10.34% 4.49%

Dividends

Ingredion pays an annual dividend of $2.40 per share and has a dividend yield of 1.8%. Ingredion pays out 34.4% of its earnings in the form of a dividend. As a group, “Food Processing” companies pay a dividend yield of 2.5% and pay out 59.2% of their earnings in the form of a dividend. Ingredion has raised its dividend for 4 consecutive years.

Analyst Ratings

This is a summary of current recommendations for Ingredion and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ingredion 0 2 2 0 2.50
Ingredion Competitors 287 1623 1953 53 2.45

Ingredion presently has a consensus price target of $138.33, suggesting a potential upside of 6.17%. As a group, “Food Processing” companies have a potential downside of 1.58%. Given Ingredion’s stronger consensus rating and higher possible upside, analysts clearly believe Ingredion is more favorable than its rivals.

Risk & Volatility

Ingredion has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500. Comparatively, Ingredion’s rivals have a beta of 0.70, suggesting that their average stock price is 30% less volatile than the S&P 500.

Valuation and Earnings

This table compares Ingredion and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Ingredion $5.70 billion $485.00 million 18.67
Ingredion Competitors $10.84 billion $602.95 million 333.97

Ingredion’s rivals have higher revenue and earnings than Ingredion. Ingredion is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Ingredion beats its rivals on 8 of the 15 factors compared.

About Ingredion

Ingredion Incorporated is an ingredients solutions provider. The Company manufactures and sells sweetener, starches, nutrition ingredients and biomaterial solutions derived from the wet milling and processing of corn and other starch-based materials to a range of industries, both domestically and internationally. It operates through four segments: North America, South America, Asia Pacific, and Europe, Middle East and Africa (EMEA). It turns corn, tapioca, potatoes, and other vegetables and fruits into ingredients and biomaterials for the food, beverage, paper and corrugating, brewing and other industries. Its product line includes animal feed products and edible corn oil. Its sweetener products include glucose syrups, high maltose syrup, high fructose corn syrup (HFCS), caramel color, dextrose, polyols, maltodextrins and glucose and syrup solids. Its starch-based products include both food-grade and industrial starches, and biomaterials. It also offers specialty ingredients.

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