Hawkins vs Kroger Which Is More Favorable?

Hawkins, a leading manufacturer of pressure cookers and cookware, has witnessed steady growth in its stock price over the years due to its strong brand reputation and consistent performance. On the other hand, Kroger, one of the largest supermarket chains in the US, has faced challenges in recent years amid increasing competition and changing consumer preferences. Investors are now weighing the potential of both stocks to determine which may offer better returns in the long run.

Hawkins or Kroger?

When comparing Hawkins and Kroger, 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 Hawkins and Kroger.

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. Hawkins has a dividend yield of 0.52%, while Kroger has a dividend yield of 2.0%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Hawkins reports a 5-year dividend growth of -6.97% year and a payout ratio of 16.92%. On the other hand, Kroger reports a 5-year dividend growth of 15.72% year and a payout ratio of 30.05%.

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 Hawkins P/E ratio at 32.05 and Kroger's P/E ratio at 15.42. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Hawkins P/B ratio is 5.91 while Kroger's P/B ratio is 3.44.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Hawkins has seen a 5-year revenue growth of 0.89%, while Kroger's is 0.40%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Hawkins's ROE at 19.64% and Kroger's ROE at 23.42%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $124.15 for Hawkins and $59.47 for Kroger. Over the past year, Hawkins's prices ranged from $54.44 to $135.61, with a yearly change of 149.10%. Kroger's prices fluctuated between $42.10 and $60.34, with a yearly change of 43.34%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.