Contrasting GrainCorp (GRCLF) and Its Peers

GrainCorp (OTCMKTS:GRCLFGet Free Report) is one of 330 public companies in the “Food Products” industry, but how does it weigh in compared to its rivals? We will compare GrainCorp to related companies based on the strength of its analyst recommendations, institutional ownership, dividends, risk, profitability, earnings and valuation.

Analyst Ratings

This is a breakdown of current recommendations and price targets for GrainCorp and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GrainCorp 0 1 0 0 2.00
GrainCorp Competitors 2361 8196 8275 401 2.35

As a group, “Food Products” companies have a potential upside of 11.74%. Given GrainCorp’s rivals stronger consensus rating and higher possible upside, analysts clearly believe GrainCorp has less favorable growth aspects than its rivals.

Profitability

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

Net Margins Return on Equity Return on Assets
GrainCorp N/A N/A N/A
GrainCorp Competitors -13.56% -146.30% -4.55%

Dividends

GrainCorp pays an annual dividend of $0.35 per share and has a dividend yield of 9.2%. GrainCorp pays out 159.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Food Products” companies pay a dividend yield of 11.6% and pay out 31.4% of their earnings in the form of a dividend. GrainCorp lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Earnings & Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
GrainCorp N/A N/A 17.32
GrainCorp Competitors $7.40 billion $706.66 million -2,367.64

GrainCorp’s rivals have higher revenue and earnings than GrainCorp. GrainCorp 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.

Institutional and Insider Ownership

18.5% of GrainCorp shares are owned by institutional investors. Comparatively, 39.0% of shares of all “Food Products” companies are owned by institutional investors. 18.1% of shares of all “Food Products” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

GrainCorp rivals beat GrainCorp on 9 of the 13 factors compared.

GrainCorp Company Profile

(Get Free Report)

GrainCorp Limited operates as an agribusiness and processing company in Australasia, Asia, North America, Europe, the Middle East, North Africa, and internationally. It operates through two segments, Agribusiness and Processing. The company handles and trades in wheat, barley, sorghum, corn, oilseeds, pulses, organics, animal fats, and used cooking oils and vegetable oils for animal feed purposes; handles, processes, and stores grains and oilseeds; refines, bleaches, deodorizes, and blends edible fats and oil products; and crushes, processes, manufactures, and distributes edible oils. It also supplies vegetable oil and molasses-based feed supplements to enhance farm productivity; and produces canola oil and canola meal. In addition, the company provides blended and single oils, infant nutrition, bakery products, margarines, spreads, and frying shortening; crushes oilseed products used in cooking oils, spreads and shortenings, prepared foods, meal for dairy, poultry and livestock, cosmetics, and lubricants; and operates bulk port terminals. Further, it engages in the procurement, shipping, accreditation, and value-added supply of tallow and used cooking oil. GrainCorp Limited was founded in 1916 and is headquartered in Barangaroo, Australia.

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