Kellogg vs General Mills Which Outperforms?

Kellogg and General Mills are two major players in the food industry, known for their iconic brands such as Corn Flakes, Frosted Flakes, Cheerios, and Lucky Charms. Both companies have a long history of market dominance and consistent revenue growth. In recent years, however, Kellogg has faced challenges with changing consumer preferences and a decline in cereal sales. On the other hand, General Mills has successfully diversified its product portfolio and adapted to shifting market trends. Investors may want to carefully compare the performance and growth potential of these two stocks before making any investment decisions.

Kellogg or General Mills?

When comparing Kellogg and General Mills, 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 Kellogg and General Mills.

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. Kellogg has a dividend yield of 2.81%, while General Mills has a dividend yield of 3.57%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Kellogg reports a 5-year dividend growth of 1.24% year and a payout ratio of 76.62%. On the other hand, General Mills reports a 5-year dividend growth of 2.89% year and a payout ratio of 56.29%.

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 Kellogg P/E ratio at 27.49 and General Mills's P/E ratio at 15.56. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Kellogg P/B ratio is 7.57 while General Mills's P/B ratio is 4.03.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Kellogg has seen a 5-year revenue growth of -0.02%, while General Mills's is 0.24%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Kellogg's ROE at 30.26% and General Mills's ROE at 25.64%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $80.56 for Kellogg and $66.39 for General Mills. Over the past year, Kellogg's prices ranged from $52.46 to $81.34, with a yearly change of 55.05%. General Mills's prices fluctuated between $61.48 and $75.90, with a yearly change of 23.45%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.