Celsius vs Kraft Heinz Which Is a Better Investment?

Celsius Holdings and Kraft Heinz are two companies operating in vastly different sectors of the market. Celsius Holdings specializes in dietary supplements and functional beverages, capitalizing on the health and wellness trend. On the other hand, Kraft Heinz is a multinational food and beverage conglomerate with a diverse product portfolio. Both stocks have shown resilience in the market, but with differing growth trajectories. This analysis will compare the performance of Celsius and Kraft Heinz stocks, highlighting key factors influencing their valuation.

Celsius or Kraft Heinz?

When comparing Celsius and Kraft Heinz, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Celsius and Kraft Heinz.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Celsius has a dividend yield of -%, while Kraft Heinz has a dividend yield of 6.15%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Celsius reports a 5-year dividend growth of 0.00% year and a payout ratio of 13.32%. On the other hand, Kraft Heinz reports a 5-year dividend growth of -8.54% year and a payout ratio of 141.82%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Celsius P/E ratio at 30.97 and Kraft Heinz's P/E ratio at 28.73. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Celsius P/B ratio is 15.11 while Kraft Heinz's P/B ratio is 0.81.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Celsius has seen a 5-year revenue growth of 15.30%, while Kraft Heinz's is 0.01%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Celsius's ROE at 21.12% and Kraft Heinz's ROE at 2.79%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $27.37 for Celsius and $32.51 for Kraft Heinz. Over the past year, Celsius's prices ranged from $27.37 to $99.62, with a yearly change of 263.98%. Kraft Heinz's prices fluctuated between $31.58 and $38.96, with a yearly change of 23.37%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.