Will Shares In Just Eat PLC Beat Unilever plc, Tesco PLC, Diageo plc And J Sainsbury plc After Results?

Do shares in Just Eat PLC (LON:JE) (LSE:JE.L) have more investment appeal than shares in Unilever plc (LON:ULVR) (LSE:ULVR.L), Tesco PLC (LON:TSCO) (LSE:TSCO.L), Diageo plc (LON:DGE) (LSE:DGE.L) and J Sainsbury plc (LON:SBRY) (LSE:SBRY.L)?

Just Eat PLC
Just Eat PLC

Shares in Just Eat PLC (LON:JE) (LSE:JE.L) have risen 4.5% at the time of writing following the release of 2016 results to the stock market. Just Eat’s orders have increased 42% to 136.4 million, which is 36% higher on a LFL basis. Revenues have risen 52% to £375.7 million, which is 46% higher on a LFL basis. An increase in PBT of 164% to £91.3 million means adjusted basic earnings per share are 85% higher at 12.2p.

In my view, the company’s results reflect a robust year for Just Eat. I’m impressed with the company’s increasing investment in, and use of, technology. I think this could improve its financial performance and share price gains in future.

Orders placed via mobile devices continued to grow in 2016, rising to 73% of group orders against 66% of group orders in 2015. More than 50% of UK orders were processed through Orderpad. This is a tablet-based order management platform in which Just Eat has invested. That figure is ahead of its target to have one-third of UK orders processed through the technology by March 2017.

Just Eat expects material growth in revenues and underlying EBITDA of between £480-495 million and £157-163 million respectively in 2017. In my view, this could help its shares to perform relatively well when compared to other consumer goods shares such as those of Unilever plc (LON:ULVR) (LSE:ULVR.L), Tesco PLC (LON:TSCO) (LSE:TSCO.L), Diageo plc (LON:DGE) (LSE:DGE.L) and J Sainsbury plc (LON:SBRY) (LSE:SBRY.L).

In the last 6 months, Just Eat’s share price has risen 0.5%. During the same time, Tesco’s shares are 10% higher, Sainsbury’s shares have gained 7%, Diageo’s shares are 6% up and Unilever’s share price is 8% to the good. In my view, Just Eat’s share price could perform well on a relative basis. I think its investment in technology and acquisitions could mean improved share price performance in the long run. I also believe the online food delivery market could be a relatively lucrative place in which to invest.

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