Hershey vs Symphony Which Is Superior?

Both Hershey Company and Symphony are well-known food companies in the confectionary industry, known for their delicious chocolates and candies. When comparing their stocks, Hershey tends to have a more stable performance with consistent growth and dividends, making it a safer investment option. On the other hand, Symphony's stock may offer higher returns due to its smaller size and potential for rapid expansion. Investors should consider their risk tolerance and investment goals when choosing between these two stocks.

Hershey or Symphony?

When comparing Hershey and Symphony, 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 Symphony.

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 2.97%, while Symphony has a dividend yield of 0.62%. 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, Symphony reports a 5-year dividend growth of 0.00% year and a payout ratio of -10.14%.

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 20.38 and Symphony's P/E ratio at -16.42. 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 8.60 while Symphony's P/B ratio is 0.99.

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 Symphony's is -0.20%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Hershey's ROE at 43.20% and Symphony's ROE at -5.91%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $174.95 for Hershey and HK$0.81 for Symphony. Over the past year, Hershey's prices ranged from $171.67 to $211.92, with a yearly change of 23.45%. Symphony's prices fluctuated between HK$0.78 and HK$0.93, with a yearly change of 19.23%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.