Hawkins vs US Foods Which Is More Profitable?

Hawkins, Inc. and US Foods Holdings Corp. are two prominent players in the food and beverage industry, each offering unique investment opportunities. Hawkins is a specialty chemical company that supplies ingredients to various industries, including food and beverage production. On the other hand, US Foods is a leading foodservice distributor in the United States. Investors interested in the food industry may find both stocks intriguing, but a deeper analysis of their financial performance, market position, and growth prospects is essential to make an informed investment decision.

Hawkins or US Foods?

When comparing Hawkins and US Foods, 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 US Foods.

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 0.51%, while US Foods has a dividend yield of -%. 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, US Foods reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 33.68 and US Foods's P/E ratio at 28.90. 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 6.21 while US Foods's P/B ratio is 3.61.

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 US Foods's is 0.33%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Hawkins's ROE at 19.64% and US Foods's ROE at 11.98%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $132.40 for Hawkins and $68.87 for US Foods. Over the past year, Hawkins's prices ranged from $54.44 to $139.55, with a yearly change of 156.34%. US Foods's prices fluctuated between $43.24 and $72.84, with a yearly change of 68.46%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.