Ingredion vs Graco Which Is Superior?

Ingredion and Graco are two prominent companies in the stock market with differing business models and market focuses. Ingredion is a global ingredient solutions provider for various industries, including food and beverage, while Graco is a leading manufacturer of fluid handling equipment for industries such as construction and automotive. Both stocks have experienced fluctuations in their value due to market conditions and company performance. Investors may consider various factors such as financials, market trends, and growth potential when evaluating these stocks for investment opportunities.

Ingredion or Graco?

When comparing Ingredion and Graco, 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 Ingredion and Graco.

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. Ingredion has a dividend yield of 2.45%, while Graco has a dividend yield of 1.22%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Ingredion reports a 5-year dividend growth of -1.22% year and a payout ratio of 32.46%. On the other hand, Graco reports a 5-year dividend growth of 9.77% year and a payout ratio of 35.40%.

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 Ingredion P/E ratio at 13.08 and Graco's P/E ratio at 29.78. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Ingredion P/B ratio is 2.19 while Graco's P/B ratio is 5.60.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Ingredion has seen a 5-year revenue growth of 0.22%, while Graco's is 0.24%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Ingredion 's ROE at 16.92% and Graco's ROE at 19.74%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $127.95 for Ingredion and $83.41 for Graco. Over the past year, Ingredion 's prices ranged from $109.51 to $155.44, with a yearly change of 41.94%. Graco's prices fluctuated between $77.49 and $94.77, with a yearly change of 22.30%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.