Graco vs Ingredion

Graco and Ingredion are two well-known companies in the stock market, each with its own unique strengths and opportunities for growth. Graco is a leading manufacturer of fluid handling equipment and systems, while Ingredion is a global ingredients solutions company. Investors looking to diversify their portfolio may consider these stocks for their potential to deliver solid returns. By examining the financial performance, market trends, and industry outlook of both companies, investors can make informed decisions on how to allocate their resources effectively.

Graco or Ingredion ?

When comparing Graco and Ingredion , 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 Graco and Ingredion .

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. Graco has a dividend yield of 0.89%, while Ingredion has a dividend yield of 2.32%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Graco reports a 5-year dividend growth of 12.14% year and a payout ratio of 33.18%. On the other hand, Ingredion reports a 5-year dividend growth of 3.99% year and a payout ratio of 31.09%.

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 Graco P/E ratio at 29.33 and Ingredion 's P/E ratio at 13.59. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Graco P/B ratio is 6.04 while Ingredion 's P/B ratio is 2.40.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Graco has seen a 5-year revenue growth of 0.32%, while Ingredion 's is 0.39%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Graco's ROE at 21.74% and Ingredion 's ROE at 18.09%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $86.38 for Graco and $133.87 for Ingredion . Over the past year, Graco's prices ranged from $69.78 to $94.77, with a yearly change of 35.81%. Ingredion 's prices fluctuated between $89.54 and $138.37, with a yearly change of 54.53%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.