Comparing Tyson Foods (TSN) & Its Rivals

Tyson Foods (NYSE:TSN) is one of 328 publicly-traded companies in the “Food Products” industry, but how does it contrast to its peers? We will compare Tyson Foods to similar businesses based on the strength of its dividends, risk, valuation, institutional ownership, profitability, analyst recommendations and earnings.

Institutional and Insider Ownership

67.0% of Tyson Foods shares are held by institutional investors. Comparatively, 39.0% of shares of all “Food Products” companies are held by institutional investors. 2.1% of Tyson Foods shares are held by insiders. Comparatively, 19.0% of shares of all “Food Products” companies are held 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.

Valuation & Earnings

This table compares Tyson Foods and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Tyson Foods	$54.44 billion	$474.00 million	36.90
Tyson Foods Competitors	$15.47 billion	$703.44 million	-2,412.60

Tyson Foods has higher revenue, but lower earnings than its peers. Tyson Foods 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.

Dividends

Tyson Foods pays an annual dividend of $2.04 per share and has a dividend yield of 3.4%. Tyson Foods pays out 125.9% 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 12.4% and pay out 29.5% of their earnings in the form of a dividend. Tyson Foods has increased its dividend for 13 consecutive years. Tyson Foods lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Risk & Volatility

Tyson Foods has a beta of 0.38, suggesting that its stock price is 62% less volatile than the S&P 500. Comparatively, Tyson Foods’ peers have a beta of -3.84, suggesting that their average stock price is 484% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Tyson Foods and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tyson Foods	1	6	5	0	2.33
Tyson Foods Competitors	2454	8305	8386	405	2.34

Tyson Foods currently has a consensus price target of $66.78, suggesting a potential upside of 11.70%. As a group, “Food Products” companies have a potential upside of 16.54%. Given Tyson Foods’ peers stronger consensus rating and higher possible upside, analysts plainly believe Tyson Foods has less favorable growth aspects than its peers.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tyson Foods	1.03%	7.77%	3.94%
Tyson Foods Competitors	-12.87%	-127.95%	-2.08%

Summary

Tyson Foods peers beat Tyson Foods on 8 of the 15 factors compared.

About Tyson Foods

Tyson Foods, Inc. is a food company focused on protein production and prepared foods. Its businesses include chicken, beef and pork products, as well as ready-to-eat and other prepared foods sold to retail customers, food-service operators and industrial buyers. The company’s products are marketed under brands including Tyson, Jimmy Dean, Hillshire Farm, Ball Park and Wright. Offerings range from fresh and frozen meat to deli products, sausages, bacon and prepared meals. Founded in 1935 by John W. Tyson, the company is headquartered in Springdale, Arkansas.