Hershey vs Mars Which Is More Lucrative?

Hershey and Mars Incorporated are two of the largest and most well-known companies in the confectionery industry. Both companies have a long and rich history in the business, with Hershey founded in 1894 and Mars in 1911. Investors often compare the performance of these two companies as they compete for market share in the global candy market. While both companies have seen growth in recent years, there are key differences in their business strategies and financial performance that investors should consider when evaluating their stocks.

Hershey or Mars?

When comparing Hershey and Mars, 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 Mars.

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 2.99%, while Mars has a dividend yield of 4.48%. 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, Mars reports a 5-year dividend growth of 16.12% year and a payout ratio of 31.68%.

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 20.91 and Mars's P/E ratio at 6.36. 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 8.82 while Mars's P/B ratio is 0.69.

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 Mars's is 0.46%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Hershey's ROE at 43.20% and Mars's ROE at 11.67%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $181.69 for Hershey and ¥3105.00 for Mars. Over the past year, Hershey's prices ranged from $168.16 to $211.92, with a yearly change of 26.02%. Mars's prices fluctuated between ¥2348.00 and ¥3960.00, with a yearly change of 68.65%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.