Comparatively, 11.0% of Beyond Meat shares are owned by company insiders. Competitors, Serious Uphill Battle for Beyond Meat to Improve Profitability. Furthermore, many of the firms in Figure 2 have other key advantages – multi-year relationships and existing distribution networks with grocery stores and quick-serve restaurants such as Tyson, or in the case of Kroger, direct control of distribution and the end-consumer relationship. For comparison, this scenario implies Beyond Meat would generate more sales than incumbent competitors such as Pilgrim’s Pride (PPC), ConAgra Foods (CAG), and Hormel Foods (HRL) in their last fiscal years. Looking ahead to 2021, consensus earnings estimates are a much higher $0.47/share. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth. While Beyond Meat’s stock performance is attractive to many momentum traders, investors with fiduciary responsibilities should consider the deteriorating fundamentals, weak prospects to compete at the scale of its competition, and the unrealistic increase in profits implied by the current valuation. © 2020 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Figure 9 compares the firm’s implied future NOPAT in this scenario to its historical NOPAT. Nomad Foods currently has a consensus price target of $26.6667, indicating a potential upside of 13.09%. Figure 6: Beyond Meat’s Adjusted EBITDA Misleads on Profitability, BYND Adjusted EBITDA Misleads On Profitability, Doing the Math: Valuation Implies Significant Disruption of the Entire Meat Industry. While the market hasn’t liked this news, both the CEO’s of Beyond Meat and McDonald’s have stated that there is no change in the relationship between the two companies. The paper empirically shows that my firm’s data is superior to “Operating Income After Depreciation” and “Income Before Special Items” from Compustat, owned by S&P Global (SPGI). See all adjustments to Beyond Meat’s valuation here. The Hain Celestial Group beats Beyond Meat on 10 of the 14 factors compared between the two stocks. Each of the above scenarios also assumes Beyond Meat is able to grow revenue, NOPAT, and FCF without increasing working capital or fixed assets. Get daily stock ideas top-performing Wall Street analysts. This table compares Beyond Meat and Conagra Brands' net margins, return on equity and return on assets. Comparatively, Beyond Meat has a beta of 2.43, indicating that its stock price is 143% more volatile than the S&P 500. While I chose Kraft Heinz, analysts can use just about any company to do the same analysis. Given Conagra Brands' stronger consensus rating and higher possible upside, analysts clearly believe Conagra Brands is more favorable than Beyond Meat. In a letterincluded with the prospectus for BYND’s IPO, Ethan Brown revealed that he sees the nutritional benefits of meat, but that he aims to remove the connection of meat to the animal that it came from, seeing it instead as “meat by co… 32.0% of Beyond Meat shares are held by institutional investors. The number of shares sold short has increased by 10% since last month. Elite money managers, advisors and institutions have relied on us to lower risk and improve performance since 2004. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. Fiduciaries should avoid Beyond Meat Inc. (BYND). Beyond Meat (NASDAQ: BYND) was founded in 2009 by Ethan Brown, a Californian entrepreneur with an interest in environmental topics, who is also a vegan.