Kraft Heinz vs Campbell Soup

Kraft Heinz and Campbell Soup are two iconic food companies that have long been staples in American households. Both companies have faced challenges in recent years, including changing consumer preferences and increased competition in the food industry. The stocks of Kraft Heinz and Campbell Soup have also experienced fluctuations, with investors closely watching their performances. In this comparison, we will analyze the key factors driving the performance of Kraft Heinz and Campbell Soup stocks and consider their prospects for the future.

Kraft Heinz or Campbell Soup?

When comparing Kraft Heinz and Campbell Soup, 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 Kraft Heinz and Campbell Soup.

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. Kraft Heinz has a dividend yield of 5.6%, while Campbell Soup has a dividend yield of 3.06%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Kraft Heinz reports a 5-year dividend growth of -8.54% year and a payout ratio of 101.56%. On the other hand, Campbell Soup reports a 5-year dividend growth of 1.12% year and a payout ratio of 78.48%.

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 Kraft Heinz P/E ratio at 22.52 and Campbell Soup's P/E ratio at 25.42. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Kraft Heinz P/B ratio is 0.89 while Campbell Soup's P/B ratio is 3.80.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Kraft Heinz has seen a 5-year revenue growth of 0.01%, while Campbell Soup's is 0.08%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Kraft Heinz's ROE at 3.90% and Campbell Soup's ROE at 14.81%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $35.43 for Kraft Heinz and $48.01 for Campbell Soup. Over the past year, Kraft Heinz's prices ranged from $31.07 to $38.96, with a yearly change of 25.37%. Campbell Soup's prices fluctuated between $39.48 and $52.81, with a yearly change of 33.76%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.