Hindustan Unilever vs ITC Which Is More Lucrative?

Hindustan Unilever Limited and ITC Limited are two prominent companies in the Indian consumer goods sector. Hindustan Unilever is a market leader in the FMCG industry, known for its wide range of products and strong brand presence. On the other hand, ITC is a diversified conglomerate with interests in FMCG, hospitality, and agri-business. Both companies have a strong track record of growth and profitability, making their stocks attractive options for investors looking to capitalize on India's consumer market.

Hindustan Unilever or ITC?

When comparing Hindustan Unilever and ITC, 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 Hindustan Unilever and ITC.

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. Hindustan Unilever has a dividend yield of 1.45%, while ITC has a dividend yield of 2.99%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Hindustan Unilever reports a 5-year dividend growth of 13.75% year and a payout ratio of 0.00%. On the other hand, ITC reports a 5-year dividend growth of 11.18% 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 Hindustan Unilever P/E ratio at 53.65 and ITC's P/E ratio at 28.06. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Hindustan Unilever P/B ratio is 10.85 while ITC's P/B ratio is 7.66.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Hindustan Unilever has seen a 5-year revenue growth of 0.46%, while ITC's is 0.44%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Hindustan Unilever's ROE at 20.13% and ITC's ROE at 27.92%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹2338.00 for Hindustan Unilever and ₹459.15 for ITC. Over the past year, Hindustan Unilever's prices ranged from ₹2172.05 to ₹3035.00, with a yearly change of 39.73%. ITC's prices fluctuated between ₹399.35 and ₹528.50, with a yearly change of 32.34%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.