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.
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.