Head-To-Head Comparison: MGP Ingredients (MGPI) versus Its Competitors

MGP Ingredients (NASDAQ:MGPI) is one of 137 publicly-traded companies in the “Beverages” industry, but how does it compare to its rivals? We will compare MGP Ingredients to similar companies based on the strength of its risk, dividends, analyst recommendations, earnings, profitability, institutional ownership and valuation.

Institutional and Insider Ownership

77.1% of MGP Ingredients shares are owned by institutional investors. Comparatively, 36.3% of shares of all “Beverages” companies are owned by institutional investors. 31.7% of MGP Ingredients shares are owned by insiders. Comparatively, 19.4% of shares of all “Beverages” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for MGP Ingredients and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MGP Ingredients	1	2	3	0	2.33
MGP Ingredients Competitors	1287	4339	5787	231	2.43

MGP Ingredients currently has a consensus price target of $26.25, suggesting a potential upside of 56.33%. As a group, “Beverages” companies have a potential upside of 9.46%. Given MGP Ingredients’ higher possible upside, equities research analysts plainly believe MGP Ingredients is more favorable than its rivals.

Valuation and Earnings

This table compares MGP Ingredients and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
MGP Ingredients	$536.38 million	-$107.81 million	-1.44
MGP Ingredients Competitors	$8.49 billion	$869.16 million	6.07

MGP Ingredients’ rivals have higher revenue and earnings than MGP Ingredients. MGP Ingredients is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Risk & Volatility

MGP Ingredients has a beta of 0.49, indicating that its stock price is 51% less volatile than the S&P 500. Comparatively, MGP Ingredients’ rivals have a beta of -0.24, indicating that their average stock price is 124% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MGP Ingredients	-51.12%	6.58%	3.75%
MGP Ingredients Competitors	-8.64%	-16.03%	0.21%

Dividends

MGP Ingredients pays an annual dividend of $0.48 per share and has a dividend yield of 2.9%. MGP Ingredients pays out -4.1% of its earnings in the form of a dividend. As a group, “Beverages” companies pay a dividend yield of 2.9% and pay out 48.2% of their earnings in the form of a dividend.

Summary

MGP Ingredients beats its rivals on 8 of the 15 factors compared.

MGP Ingredients Company Profile

MGP Ingredients, Inc., together with its subsidiaries, engages in the production and supply of distilled spirits, branded spirits, and food ingredients in the United States and internationally. The company operates through three segments: Distillery Solutions; Branded Spirits; and Ingredient Solutions. The Distillery Solutions segment provides food grade alcohol for beverage applications that include bourbon, rye, whiskeys, as well as grain neutral spirits, include vodka and gin; and food-grade industrial alcohol, which is used as an ingredient in food products, personal care products, cleaning solutions, pharmaceuticals, and various other products. This segment also offers distillery co-products, such as dried distillers’ grain, fuel-grade alcohol for blending with gasoline, and corn oil; and provides warehouse services, including barrel put away, barrel storage, and barrel retrieval services, as well as blending services. The Branded Spirits segment provides premium plus, ultra-premium, super premium, premium, mid, and value branded distilled spirits, as well as private label products. The Ingredient Solutions segment provides specialty wheat starches for food applications under the Fibersym, Resistant Starch series, and FiberRite RW Resistant Starch names; specialty wheat proteins for food applications under the Arise and Proterra names; gluten-free textured pea proteins; commodity wheat starch for food and non-food applications; and commodity wheat proteins. It sells its products directly or through distributors to manufacturers and processors of finished packaged goods or to bakeries. The company was founded in 1941 and is based in Atchison, Kansas.