General Mills vs Kellogg Which Is More Reliable?

General Mills and Kellogg are two of the biggest names in the consumer packaged goods industry, known for their iconic breakfast cereals and other food products. Both companies have a long history of success and a strong presence in the market. Investors are constantly comparing their stocks, analyzing factors such as revenue growth, profit margins, and brand strength. Understanding the performance of General Mills vs. Kellogg stocks is crucial for anyone looking to make informed investment decisions in the food industry.

General Mills or Kellogg?

When comparing General Mills and Kellogg, 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 General Mills and Kellogg.

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. General Mills has a dividend yield of 3.6%, while Kellogg has a dividend yield of 2.8%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. General Mills reports a 5-year dividend growth of 2.89% year and a payout ratio of 56.29%. On the other hand, Kellogg reports a 5-year dividend growth of 1.24% year and a payout ratio of 76.62%.

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 General Mills P/E ratio at 15.43 and Kellogg's P/E ratio at 27.54. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. General Mills P/B ratio is 4.00 while Kellogg's P/B ratio is 7.58.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, General Mills has seen a 5-year revenue growth of 0.24%, while Kellogg's is -0.02%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with General Mills's ROE at 25.64% and Kellogg's ROE at 30.26%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $65.19 for General Mills and $80.62 for Kellogg. Over the past year, General Mills's prices ranged from $61.48 to $75.90, with a yearly change of 23.45%. Kellogg's prices fluctuated between $52.46 and $81.34, with a yearly change of 55.05%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.