Reviewing WK Kellogg (KLG) & The Competition

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

Insider and Institutional Ownership

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

Risk and Volatility

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

Dividends

WK Kellogg pays an annual dividend of $0.66 per share and has a dividend yield of 4.2%. 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 raised its dividend for 1 consecutive years.

Analyst Ratings

This is a summary of current ratings and recommmendations for WK Kellogg and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WK Kellogg	4	3	0	0	1.43
WK Kellogg Competitors	644	2843	2951	87	2.38

WK Kellogg currently has a consensus price target of $16.86, indicating a potential upside of 7.57%. As a group, “CONS PD – MISC STPL” companies have a potential upside of 19.55%. Given WK Kellogg’s peers stronger consensus rating and higher probable upside, analysts clearly believe WK Kellogg has less favorable growth aspects than its peers.

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
WK Kellogg	$2.71 billion	$72.00 million	24.49
WK Kellogg Competitors	$13.76 billion	$1.19 billion	18.87

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%

Summary

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

About WK Kellogg

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.