Reviewing Mondelez International (KFT) & Hershey Company (The) (HSY)
Mondelez International (NYSE: KFT) and Hershey Company (The) (NYSE:HSY) are both non-cyclical consumer goods & services companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, risk, institutional ownership, valuation, dividends and profitability.
Institutional & Insider Ownership
51.4% of Hershey Company (The) shares are owned by institutional investors. 0.9% of Hershey Company (The) shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Mondelez International and Hershey Company (The)’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Hershey Company (The)||$7.52 billion||2.20||$1.72 billion||$3.14||34.66|
Hershey Company (The) has higher revenue and earnings than Mondelez International.
Hershey Company (The) pays an annual dividend of $2.62 per share and has a dividend yield of 2.4%. Mondelez International does not pay a dividend. Hershey Company (The) pays out 83.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Mondelez International has raised its dividend for 7 consecutive years.
This is a breakdown of recent recommendations for Mondelez International and Hershey Company (The), as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Hershey Company (The)||1||8||4||0||2.23|
Hershey Company (The) has a consensus target price of $111.54, indicating a potential upside of 2.48%. Given Hershey Company (The)’s higher probable upside, analysts clearly believe Hershey Company (The) is more favorable than Mondelez International.
This table compares Mondelez International and Hershey Company (The)’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Hershey Company (The)||8.95%||119.66%||18.88%|
Hershey Company (The) beats Mondelez International on 9 of the 11 factors compared between the two stocks.
About Mondelez International
Mondelez International, Inc. is a snack company. The Company manufactures and markets snack food and beverage products for consumers. It operates through four segments: Latin America, Asia, Middle East, and Africa (AMEA), Europe and North America. As of December 31, 2016, its brands spanned five product categories: Biscuits (including cookies, crackers and salted snacks); Chocolate; Gum and candy; Beverages (including coffee and powdered beverages), and Cheese and grocery. Itsportfolio includes various snack brands, including Nabisco, Oreo, LU and belVita biscuits; Cadbury, Milka, Cadbury Dairy Milk and Toblerone chocolate; Trident gum; Halls candy, and Tang powdered beverages. The Company sells its products to supermarket chains, wholesalers, supercenters, club stores, mass merchandisers, distributors, convenience stores, gasoline stations, drug stores, value stores and retail food outlets. As of December 31, 2016, it sold its products to consumers in approximately 165 countries.
About Hershey Company (The)
The Hershey Company is a producer of chocolate in North America. The Company’s principal product offerings include chocolate and non-chocolate confectionery products; gum and mint refreshment products; pantry items, such as baking ingredients and beverages, and snack items, such as spreads, meat snacks, bars and snack bites and mixes. Its segments include North America, and International and Other. The North America segment includes its chocolate and non-chocolate confectionery business, as well as its grocery and snacks business. This includes developing and growing its business in chocolate and non-chocolate confectionery, pantry, food service and other snacking product lines. The Company distributes and sells confectionery products in export markets of Asia, Latin America, the Middle East, Europe, Africa and other regions. As of December 31, 2016, the Company marketed, sold and distributed its products under more than 80 brand names in approximately 70 countries across the world.
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