Financial Contrast: Orkla Asa (ORKLY) vs. Its Competitors

Orkla Asa (OTCMKTS:ORKLY) is one of 52 public companies in the “DIVERSIFIED OPS” industry, but how does it contrast to its peers? We will compare Orkla Asa to similar companies based on the strength of its valuation, earnings, risk, dividends, institutional ownership, analyst recommendations and profitability.

Dividends

Orkla Asa pays an annual dividend of $0.27 per share and has a dividend yield of 2.5%. Orkla Asa pays out 46.6% of its earnings in the form of a dividend. As a group, “DIVERSIFIED OPS” companies pay a dividend yield of 1.6% and pay out 26.9% of their earnings in the form of a dividend.

Valuation & Earnings

This table compares Orkla Asa and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Orkla Asa	$6.57 billion	$546.95 million	18.47
Orkla Asa Competitors	$13.57 billion	$994.46 million	43.14

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

Profitability

This table compares Orkla Asa and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Orkla Asa	9.02%	13.32%	7.44%
Orkla Asa Competitors	-21.64%	-39.26%	-6.96%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Orkla Asa and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orkla Asa	0	0	0	1	4.00
Orkla Asa Competitors	202	873	1641	64	2.56

As a group, “DIVERSIFIED OPS” companies have a potential downside of 5.00%. Given Orkla Asa’s peers higher probable upside, analysts plainly believe Orkla Asa has less favorable growth aspects than its peers.

Institutional & Insider Ownership

44.2% of shares of all “DIVERSIFIED OPS” companies are held by institutional investors. 28.6% of shares of all “DIVERSIFIED OPS” 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.

Volatility & Risk

Orkla Asa has a beta of 0.49, indicating that its share price is 51% less volatile than the S&P 500. Comparatively, Orkla Asa’s peers have a beta of 0.79, indicating that their average share price is 21% less volatile than the S&P 500.

Summary

Orkla Asa peers beat Orkla Asa on 9 of the 15 factors compared.

Orkla Asa Company Profile

Orkla ASA engages in branded consumer goods, and industrial and financial investment businesses. The company offers branded products, including frozen pizza, ketchup, soups, sauces, bread toppings, and ready-to-eat meals through grocery channels, as well as food service, convenience stores, and petrol stations. It also provides confectionery, biscuit, and snack products; and spices, masalas, and various food products based on dried mixes. In addition, the company offers personal care, hygiene, laundry detergent, and cleaning products; dietary supplement, oral care, sport nutrition, and weight control products; wound care products and first aid equipment; painting tools and accessories; basic and wool garments; and professional cleaning products. It operates Gymgrossisten, Proteinfabrikken, Bodystore, and Fitnesstukku e-commerce portals for health and sports nutrition products; and restaurants. Additionally, the company supplies margarine and butter blends, bread and cake improvers and mixes, yeast, marzipan, and ice cream ingredients; produces and supplies hydro power to the Nordic power market; and develops and sells real estate properties. It offers its food products under the Grandiosa, TORO, Stabburet, Felix, Paulúns, Fun Light, Abba, Beauvais, Kalles, Den Gamle Fabrik, Hamé, and Vitana brands; confectionery and snacks under the KiMs, Nidar, Stratos, Sætre, Göteborgs Kex, OLW, Panda, Laima, Selga, Taffel, Kalev, and Nói Síríus brands; home and personal care products under Zalo, OMO, Blenda, Jif, Define, Solidox, Dr Greve, Lano, and Bliw; health produtcs under Möller's, Jordan, Vitalab, OSL, Cederroth First Aid, Salvequick, Livol, Nutrilett, Maxim, Collett, Solidox and CuraMed brands; and food ingredients under the Odense, Mors Hjemmebakte, KronJäst, Bakkedal, and NATURLI brands. It has operations in Norway, Sweden, Denmark, Finland, Iceland, the Baltics, rest of Europe, and internationally. The company was founded in 1918 and is headquartered in Oslo, Norway.