Financial Survey: Danone (DANOY) versus The Competition

Danone (OTCMKTS: DANOY) is one of 25 public companies in the “Food & kindred products” industry, but how does it weigh in compared to its competitors? We will compare Danone to similar businesses based on the strength of its profitability, earnings, dividends, risk, institutional ownership, valuation and analyst recommendations.

Dividends

Danone pays an annual dividend of $0.37 per share and has a dividend yield of 2.6%. Danone pays out 48.7% of its earnings in the form of a dividend. As a group, “Food & kindred products” companies pay a dividend yield of 2.6% and pay out 52.6% of their earnings in the form of a dividend.

Valuation & Earnings

This table compares Danone and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Danone $26.98 billion $2.23 billion 18.93
Danone Competitors $9.53 billion $1.14 billion 8.80

Danone has higher revenue and earnings than its competitors. Danone is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Risk and Volatility

Danone has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500. Comparatively, Danone’s competitors have a beta of 0.91, indicating that their average stock price is 9% less volatile than the S&P 500.

Profitability

This table compares Danone and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Danone N/A N/A N/A
Danone Competitors 4.60% 11.43% 4.63%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Danone and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Danone 6 6 3 0 1.80
Danone Competitors 348 1184 1202 33 2.33

As a group, “Food & kindred products” companies have a potential downside of 1.55%. Given Danone’s competitors stronger consensus rating and higher possible upside, analysts clearly believe Danone has less favorable growth aspects than its competitors.

Insider & Institutional Ownership

0.2% of Danone shares are held by institutional investors. Comparatively, 58.4% of shares of all “Food & kindred products” companies are held by institutional investors. 1.0% of Danone shares are held by insiders. Comparatively, 13.4% of shares of all “Food & kindred products” companies are held 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.

Summary

Danone competitors beat Danone on 11 of the 15 factors compared.

About Danone

Danone S.A. operates in the food and beverage industry in Europe, Noram, Latin America, the Asia Pacific, Africa, and the Middle East. The company operates through three segments: Essential Dairy & Plant-Based, Specialized Nutrition, and Waters. It produces and distributes yogurts; milk products; coffee creamers, drinks, and beverages; plant-based products; and ice creams, desserts, and nutritional powdered protein products under the Danone, Danonino or Prostokvashino, Light & Free, Actimel, Activia, Oikos, Danette, Danissimo, YoPRO, Horizon, SToK, Silk, So Delicious, Vega, and Alpro brands, as well as under the license brands, including International Delight, Dunkin' Donuts, and Bailey's. In addition, it offers specialized nutrition products for pregnant and breastfeeding mothers, infants, and young children under the Aptamil, Nutrilon, Gallia, Cow & Gate, Blédina, Bebelac, Olvarit, and Happy Family Organics brands. Further, the company provides tube feeding products under the Nutrison name; oral nutritional supplements under the Fortimel and NutriDrink names; and hypoallergenic products for children with allergies primarily under the Aptamil ProSyneo, Aptamil Pepti Syneo, and Neocate Syneo names. Additionally, it offers water with natural fruit extracts, fruit juice, and vitamins under the evian, Volvic, Aqua, Mizone, Bonafont, Villavicencio, Villa del Sur, Hayat, Sirma, Fontvella, Lanjarón, Salus, Aqua d'Or, and Zywiec Zdroj brands. The company distributes its products through retail chains and traditional market outlets; convenience stores; hospitals, clinics, and pharmacies; and e-commerce. The company was formerly known as Groupe Danone and changed its name to Danone S.A. in April 2009. Danone S.A. was founded in 1899 and is based in Paris, France.

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