How Does Pinnacle Foods Compare to Its Peers?

In this article, we’ll compare Pinnacle Foods with its peers as of January 6, 2016. First, let’s compare Pinnacle Foods and its peers based on PE (price-to-earnings) ratio:

• Pinnacle Foods (PF): 29.5x
• Mondelez International (MDLZ): 8.5x
• General Mills (GIS): 23.4x

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

• Pinnacle Foods: 2.8x
• Mondelez International: 2.4x
• General Mills: 7.1x
• ConAgra Foods (CAG): 5.2x

According to the above findings, PF’s peers have mostly outperformed PF based on PBV. However, Pinnacle Foods is ahead of its peers based on PE.

The PowerShares DWA Consumer Staples Momentum Portfolio (PSL) invests 2.3% of its holdings in Pinnacle Foods. The ETF tracks an index of US consumer cyclical firms selected and weighted by price momentum.

The First Trust Consumer Staples AlphaDEX ETF (FXG) invests 0.79% of its holdings in Pinnacle Foods. The ETF tracks an index of large-cap and mid-cap US consumer staples stocks. The underlying index uses multifactor selection and tiered equal weighting.

The Guggenheim Mid-Cap Core ETF (CZA) invests 0.68% of its holdings in Pinnacle Foods. The ETF tracks the Zacks Mid-Cap Core Index, a proprietary selected portfolio of 100 mid-cap stocks that seeks to outperform pure market-cap indexes.

Now let’s compare Pinnacle Foods with the ETFs that invest in it:

• The year-to-date price movements of PF, PSL, FXG, and CZA are 0.71%, -1.1%, -0.74%, and -0.82%, respectively.
• The PE ratios of PF, PSL, FXG, and CZA are 29.5x, 24.1x, 18.4x, and 19.3x, respectively.
• The PBV ratios of PF, PSL, FXG, and CZA are 2.8x, 5.3x, 4.2x, and 1.9x, respectively.

According to the above findings, these ETFs have mostly outperformed Pinnacle Foods based on PBV. However, Pinnacle Foods is ahead of its ETFs based on price movement and PE.