Critical Review: Barry Callebaut (BYCBF) vs. Its Competitors

Barry Callebaut (OTCMKTS:BYCBF) is one of 329 publicly-traded companies in the “Food Products” industry, but how does it weigh in compared to its rivals? We will compare Barry Callebaut to similar businesses based on the strength of its valuation, dividends, risk, profitability, analyst recommendations, institutional ownership and earnings.

Institutional & Insider Ownership

11.8% of Barry Callebaut shares are held by institutional investors. Comparatively, 39.2% of shares of all “Food Products” companies are held by institutional investors. 18.5% of shares of all “Food Products” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Barry Callebaut and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Barry Callebaut	0	1	1	0	2.50
Barry Callebaut Competitors	2319	8141	8215	392	2.35

As a group, “Food Products” companies have a potential upside of 12.94%. Given Barry Callebaut’s rivals higher possible upside, analysts clearly believe Barry Callebaut has less favorable growth aspects than its rivals.

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Barry Callebaut	N/A	N/A	31.29
Barry Callebaut Competitors	$7.22 billion	$712.04 million	-321.33

Barry Callebaut’s rivals have higher revenue and earnings than Barry Callebaut. Barry Callebaut 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Barry Callebaut	N/A	N/A	N/A
Barry Callebaut Competitors	-16.22%	-137.78%	-3.97%

Summary

Barry Callebaut beats its rivals on 6 of the 11 factors compared.

About Barry Callebaut

Barry Callebaut AG, together with its subsidiaries, engages in the manufacture and sale of chocolate and cocoa products. The company provides chocolates, compounds, chips and chunks, cocoa, cacao fruit, fillings, coatings, nuts, decorations and inclusions, and food colorants, as well as personalization sheets. It also offers cocoa powder, chocolate drinks, cappuccinos, dessert drinks, dairy and non-dairy products, tea, and coffee. The company provides products under the ASM, Barry Callebaut, Cacao Barry, Callebaut, Carma, Chocovic, Mona Lisa, Gertrude Hawk Ingredients, Van Houten Professional, Bensdorp, Cabosse Naturals, Caprimo, D'Orsogna Dolciaria, IBC, and La Morella Nuts names. In addition, it offers management services, and research and development services, as well as conference and training services through CHOCOLATE ACADEMY centers. The company serves food manufacturers and artisans; and professional users of chocolate, including chocolatiers, pastry chefs, bakers, hotels, restaurants, or caterers. It also offers products for vending machines. The company operates primarily in the United States, Germany, the United Kingdom, Belgium, France, Mexico, Brazil, Poland, Switzerland, rest of Europe, rest of Americas, and the Asia Pacific. Barry Callebaut AG is headquartered in Zurich, Switzerland.