Hindustan Unilever vs Unilever Which Is More Promising?

Hindustan Unilever Limited (HUL) is a subsidiary of the global consumer goods company Unilever, which operates in India. HUL's stock performance is often compared to its parent company, Unilever, which is listed on various stock exchanges worldwide. Both companies are known for their wide range of household and personal care products. Investors often track the performance of HUL and Unilever stocks to gauge the overall health of the consumer goods industry and to make informed investment decisions.

Hindustan Unilever or Unilever?

When comparing Hindustan Unilever and Unilever, 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 Unilever.

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 1.42%, while Unilever has a dividend yield of 3.01%. 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, Unilever reports a 5-year dividend growth of 0.22% year and a payout ratio of 64.35%.

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 54.68 and Unilever's P/E ratio at 21.22. 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 11.06 while Unilever's P/B ratio is 6.94.

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 Unilever's is 0.24%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Hindustan Unilever's ROE at 20.13% and Unilever's ROE at 34.58%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹2333.45 for Hindustan Unilever and $58.61 for Unilever. Over the past year, Hindustan Unilever's prices ranged from ₹2172.05 to ₹3035.00, with a yearly change of 39.73%. Unilever's prices fluctuated between $46.46 and $65.87, with a yearly change of 41.78%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.