Kellogg vs Marico Which Is a Smarter Choice?

Kellogg Company, a multinational food manufacturing company, is known for its popular breakfast cereals and snacks. Marico Limited, a leading consumer goods company based in India, focuses on beauty and wellness products. Both stocks are solid choices for investors looking to diversify their portfolio in the consumer goods sector. Kellogg has a strong global presence and a history of stable performance, while Marico's innovative products and strong brand recognition make it a promising investment option in the emerging markets.

Kellogg or Marico?

When comparing Kellogg and Marico, 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 Marico.

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 2.76%, while Marico has a dividend yield of 1.7%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Kellogg reports a 5-year dividend growth of 0.00% year and a payout ratio of 57.78%. On the other hand, Marico reports a 5-year dividend growth of 3.40% 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 Kellogg P/E ratio at 21.16 and Marico's P/E ratio at 47.58. 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 7.53 while Marico's P/B ratio is 16.40.

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 -0.07%, while Marico's is 0.32%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Kellogg's ROE at 38.69% and Marico's ROE at 37.17%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $82.29 for Kellogg and ₹581.95 for Marico. Over the past year, Kellogg's prices ranged from $52.46 to $83.22, with a yearly change of 58.64%. Marico's prices fluctuated between ₹486.30 and ₹719.85, with a yearly change of 48.03%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.