Givaudan vs DSM-Firmenich Which Is More Profitable?

Givaudan and DSM-Firmenich are two prominent players in the fragrance and flavor industry, both boasting strong market positions and innovative product portfolios. Givaudan, a Swiss-based company, is the world's largest flavor and fragrance manufacturer, known for its high-quality ingredients and diverse range of products. DSM-Firmenich, a joint venture between Dutch company DSM and Swiss firm Firmenich, is a rapidly growing competitor in the market, with a focus on sustainable and natural ingredients. Investors looking to capitalize on the growth and potential of the fragrance and flavor industry may find opportunities in both Givaudan and DSM-Firmenich stocks.

Givaudan or DSM-Firmenich?

When comparing Givaudan and DSM-Firmenich, 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 Givaudan and DSM-Firmenich.

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. Givaudan has a dividend yield of 1.94%, while DSM-Firmenich has a dividend yield of 2.42%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Givaudan reports a 5-year dividend growth of 3.33% year and a payout ratio of 50.00%. On the other hand, DSM-Firmenich reports a 5-year dividend growth of 0.00% year and a payout ratio of -426.58%.

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 Givaudan P/E ratio at 0.60 and DSM-Firmenich's P/E ratio at -143.80. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Givaudan P/B ratio is 0.17 while DSM-Firmenich's P/B ratio is 1.24.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Givaudan has seen a 5-year revenue growth of 61.30%, while DSM-Firmenich's is -0.13%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Givaudan's ROE at 30.20% and DSM-Firmenich's ROE at -0.84%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $91.07 for Givaudan and €102.90 for DSM-Firmenich. Over the past year, Givaudan's prices ranged from $75.55 to $110.32, with a yearly change of 46.02%. DSM-Firmenich's prices fluctuated between €85.86 and €124.85, with a yearly change of 45.41%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.