Mars vs Hershey Which Is More Lucrative?

Investors looking to diversify their portfolio may consider exploring the potential of Mars and Hershey stocks. Both companies are big players in the confectionery industry, known for their popular brands and global presence. Mars, a private company, offers stability and long-term growth potential, while Hershey, a publicly traded company, provides the opportunity for more immediate returns. By comparing the performance of these two companies and considering factors such as brand strength and market trends, investors can make informed decisions to maximize their investment portfolio.

Mars or Hershey?

When comparing Mars and Hershey, 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 Mars and Hershey.

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. Mars has a dividend yield of 4.44%, while Hershey has a dividend yield of 3.1%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Mars reports a 5-year dividend growth of 16.12% year and a payout ratio of 31.68%. On the other hand, Hershey reports a 5-year dividend growth of 10.09% year and a payout ratio of 59.32%.

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 Mars P/E ratio at 6.38 and Hershey's P/E ratio at 20.21. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Mars P/B ratio is 0.70 while Hershey's P/B ratio is 8.52.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Mars has seen a 5-year revenue growth of 0.46%, while Hershey's is 0.47%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Mars's ROE at 11.67% and Hershey's ROE at 43.20%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥3130.00 for Mars and $174.28 for Hershey. Over the past year, Mars's prices ranged from ¥2309.00 to ¥3960.00, with a yearly change of 71.50%. Hershey's prices fluctuated between $168.16 and $211.92, with a yearly change of 26.02%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.