Hershey vs Chocoladefabriken Lindt & Sprüngli Which Should You Buy?

Hershey Company and Chocoladefabriken Lindt & Sprüngli AG are two of the most iconic chocolate companies in the world, each with its own unique history and reputation. Hershey, founded in 1894, is known for its American-style chocolate bars and popular brands such as Reese's and Kit Kat. Lindt & Sprüngli, on the other hand, is a Swiss chocolatier dating back to 1845, renowned for its luxury chocolates and premium quality. Both companies have a strong presence in the global market, but investors may be interested in comparing their stocks to determine which one offers better potential for growth and profitability.

Hershey or Chocoladefabriken Lindt & Sprüngli?

When comparing Hershey and Chocoladefabriken Lindt & Sprüngli, 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 Hershey and Chocoladefabriken Lindt & Sprüngli.

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. Hershey has a dividend yield of 2.4%, while Chocoladefabriken Lindt & Sprüngli has a dividend yield of 1.52%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Hershey reports a 5-year dividend growth of 10.09% year and a payout ratio of 59.32%. On the other hand, Chocoladefabriken Lindt & Sprüngli reports a 5-year dividend growth of 6.97% year and a payout ratio of 35.03%.

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 Hershey P/E ratio at 19.51 and Chocoladefabriken Lindt & Sprüngli's P/E ratio at 2.56. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Hershey P/B ratio is 8.23 while Chocoladefabriken Lindt & Sprüngli's P/B ratio is 0.54.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Hershey has seen a 5-year revenue growth of 0.47%, while Chocoladefabriken Lindt & Sprüngli's is 11.48%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Hershey's ROE at 43.20% and Chocoladefabriken Lindt & Sprüngli's ROE at 21.38%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $170.58 for Hershey and $11398.00 for Chocoladefabriken Lindt & Sprüngli. Over the past year, Hershey's prices ranged from $170.58 to $211.92, with a yearly change of 24.23%. Chocoladefabriken Lindt & Sprüngli's prices fluctuated between $11180.00 and $13370.50, with a yearly change of 19.59%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.