Mondelez International vs Nestlé Which Is More Favorable?

Mondelez International and Nestlé are two of the biggest players in the food and beverage industry, competing for market share and investor confidence. Mondelez International, known for iconic brands like Oreo and Cadbury, has experienced steady growth in recent years. On the other hand, Nestlé, with a diverse portfolio including Nescafé and Kit Kat, has faced challenges in certain markets. Investors closely monitor both stocks' performances, considering factors like innovation, competition, and changing consumer preferences. Let's delve deeper into the financials and outlook of these two titans of the industry.

Mondelez International or Nestlé?

When comparing Mondelez International and Nestlé, 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 Mondelez International and Nestlé.

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. Mondelez International has a dividend yield of 2.71%, while Nestlé has a dividend yield of 6.94%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Mondelez International reports a 5-year dividend growth of 11.03% year and a payout ratio of 60.30%. On the other hand, Nestlé reports a 5-year dividend growth of 6.70% year and a payout ratio of 69.76%.

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 Mondelez International P/E ratio at 22.63 and Nestlé's P/E ratio at 18.03. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Mondelez International P/B ratio is 3.10 while Nestlé's P/B ratio is 6.15.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Mondelez International has seen a 5-year revenue growth of 0.50%, while Nestlé's is 0.16%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Mondelez International's ROE at 13.59% and Nestlé's ROE at 32.67%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $63.92 for Mondelez International and $87.07 for Nestlé. Over the past year, Mondelez International's prices ranged from $63.92 to $77.20, with a yearly change of 20.78%. Nestlé's prices fluctuated between $87.07 and $117.55, with a yearly change of 35.01%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.