WK Kellogg (KLG) versus Its Competitors Financial Review

WK Kellogg (NYSE:KLG) is one of 49 publicly-traded companies in the “CONS PD – MISC STPL” industry, but how does it contrast to its peers? We will compare WK Kellogg to similar businesses based on the strength of its dividends, earnings, valuation, profitability, analyst recommendations, risk and institutional ownership.

Earnings & Valuation

This table compares WK Kellogg and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
WK Kellogg	$2.71 billion	$72.00 million	24.14
WK Kellogg Competitors	$13.76 billion	$1.19 billion	19.36

WK Kellogg’s peers have higher revenue and earnings than WK Kellogg. WK Kellogg 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.

Profitability

This table compares WK Kellogg and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
WK Kellogg	2.14%	34.88%	5.81%
WK Kellogg Competitors	-5.00%	-201.12%	-2.18%

Dividends

WK Kellogg pays an annual dividend of $0.66 per share and has a dividend yield of 4.3%. WK Kellogg pays out 103.1% 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, “CONS PD – MISC STPL” companies pay a dividend yield of 2.3% and pay out 69.7% of their earnings in the form of a dividend. WK Kellogg has increased its dividend for 1 consecutive years.

Institutional & Insider Ownership

95.7% of WK Kellogg shares are owned by institutional investors. Comparatively, 64.9% of shares of all “CONS PD – MISC STPL” companies are owned by institutional investors. 2.2% of WK Kellogg shares are owned by company insiders. Comparatively, 15.9% of shares of all “CONS PD – MISC STPL” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Volatility and Risk

WK Kellogg has a beta of 0.35, suggesting that its stock price is 65% less volatile than the S&P 500. Comparatively, WK Kellogg’s peers have a beta of 0.69, suggesting that their average stock price is 31% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and target prices for WK Kellogg and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WK Kellogg	4	3	0	0	1.43
WK Kellogg Competitors	645	2846	2953	87	2.38

WK Kellogg presently has a consensus target price of $16.86, indicating a potential upside of 9.11%. As a group, “CONS PD – MISC STPL” companies have a potential upside of 19.80%. Given WK Kellogg’s peers stronger consensus rating and higher probable upside, analysts plainly believe WK Kellogg has less favorable growth aspects than its peers.

Summary

WK Kellogg peers beat WK Kellogg on 9 of the 15 factors compared.

WK Kellogg Company Profile

WK Kellogg Co operates as a food company in the United States, Canada, and the Caribbean. It manufactures, markets, and distributes ready-to-eat cereal products primarily under the Frosted Flakes, Special K, Froot Loops, Raisin Bran, Frosted Mini-Wheats, and Kashi brands. The company was formerly known as North America Cereal Co. and changed its name to WK Kellogg Co in March 2023. The company was incorporated in 2022 and is headquartered in Battle Creek, Michigan.