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How Does Cal-Maine Foods Compare to Its Peers?


Dec. 24 2015, Published 4:48 p.m. ET

Cal-Maine Foods and its peers

In Part 1 of this series, we looked at Cal-Maine Foods’ (CALM) fiscal 2Q16 results. Now let’s compare Cal-Maine with its peers as of December 23, 2015.

First, let’s compare PE (price-to-earnings) ratios:

  • Cal-Maine Foods (CALM): 8.7x
  • Tyson Foods (TSN): 18.2x
  • Pilgrim’s Pride (PPC): 7.8x
  • Industrias Bachoco S.A.B. de C.V.-ADR (IBA): 9.4x
  • Sanderson Farms (SAFM): 8.5x

Now let’s look at PBV (price-to-book value) ratios:

  • Cal-Maine Foods: 3.0x
  • Tyson Foods: 2.3x
  • Pilgrim’s Pride: 4.7x
  • Industrias Bachoco: 1.5x
  • Sanderson Farms: 1.7x

Next, let’s see how Cal-Maine Foods compare with PS (price-to-sales) ratios:

  • Cal-Maine Foods: 1.3x
  • Tyson Foods: 0.48x
  • Pilgrim’s Pride: 0.69x
  • Industrias Bachoco: 0.93x
  • Sanderson Farms: 0.65x

As we can see, Cal-Maine Foods has outperformed its peers based on PBV and PS.

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ETFs that invest in Cal-Maine Foods

The PowerShares Dynamic Food & Beverage Portfolio ETF (PBJ) invests 2.3% of its holdings in Cal-Maine Foods.

The PowerShares DWA Consumer Staples Momentum Portfolio ETF (PSL) invests 1.4% of its holdings in Cal-Maine Foods. The ETF tracks an index of US consumer cyclical firms selected and weighted by price momentum.

The Guggenheim S&P SmallCap 600 Pure Growth ETF (RZG) invests 0.92% of its holdings in Cal-Maine Foods. The ETF tracks an index of US-listed small-cap growth companies. It selects only pure growth companies and weighted them by style scores.

Compared Cal-Maine Foods and its ETFs

Now let’s look at a comparison of Cal-Maine Foods and the ETFs that invest in it:

  • The year-to-date price movements of Cal-Maine Foods, PBJ, PSL, and RZG are 31.9%, 7.9%, 13.6%, and 1.3%, respectively.
  • The PE ratios of Cal-Maine Foods, PBJ, PSL, and RZG are 8.7x, 23.9x, 24.1x, and 28.2x, respectively.
  • The PBV ratios of Cal-Maine Foods, PBJ, PSL, and RZG are 3.0x, 3.3x, 5.3x, and 3.2x, respectively.

According to the above findings, ETFs holding Cal-Maine Foods have outperformed CALM based on PE and PBV. However, Cal-Maine Foods is way ahead of its ETFs based on price movement.


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