Conagra Brands vs Campbell Soup Which Offers More Value?

Conagra Brands and Campbell Soup are two major players in the food industry, both known for their popular brands and products. Both companies have seen fluctuations in their stock prices in recent years, with Conagra Brands experiencing growth and Campbell Soup facing challenges. Investors are closely monitoring these two stocks to see which company will come out on top in the competitive food market. This comparison will explore the key factors driving the performance of Conagra Brands and Campbell Soup stocks.

Conagra Brands or Campbell Soup?

When comparing Conagra Brands and Campbell Soup, 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 Conagra Brands and Campbell Soup.

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. Conagra Brands has a dividend yield of 6.31%, while Campbell Soup has a dividend yield of 3.31%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Conagra Brands reports a 5-year dividend growth of 9.86% year and a payout ratio of 135.38%. On the other hand, Campbell Soup reports a 5-year dividend growth of 1.12% year and a payout ratio of 78.48%.

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 Conagra Brands P/E ratio at 26.87 and Campbell Soup's P/E ratio at 23.52. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Conagra Brands P/B ratio is 1.53 while Campbell Soup's P/B ratio is 3.52.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Conagra Brands has seen a 5-year revenue growth of 0.30%, while Campbell Soup's is 0.08%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Conagra Brands's ROE at 5.59% and Campbell Soup's ROE at 14.81%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $27.71 for Conagra Brands and $44.63 for Campbell Soup. Over the past year, Conagra Brands's prices ranged from $26.62 to $33.24, with a yearly change of 24.87%. Campbell Soup's prices fluctuated between $39.65 and $52.81, with a yearly change of 33.19%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.