Nestlé vs Mondelez International

Nestlé and Mondelez International are two leading companies in the food and beverage industry, with a strong presence in global markets. Nestlé, known for its iconic brands such as Nescafé and KitKat, has a diversified portfolio with a focus on health and wellness products. Mondelez International, on the other hand, is famous for brands like Oreo and Cadbury, with a strong focus on snacks and confectionery. Investors may consider factors like growth potential, financial performance, and market trends when comparing these stocks for investment opportunities.

Nestlé or Mondelez International?

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

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. Nestlé has a dividend yield of 6.05%, while Mondelez International has a dividend yield of 2.43%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Nestlé reports a 5-year dividend growth of 6.70% year and a payout ratio of 69.76%. On the other hand, Mondelez International reports a 5-year dividend growth of 11.03% year and a payout ratio of 57.16%.

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 Nestlé P/E ratio at 19.54 and Mondelez International's P/E ratio at 24.43. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Nestlé P/B ratio is 6.67 while Mondelez International's P/B ratio is 3.48.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Nestlé has seen a 5-year revenue growth of 0.15%, while Mondelez International's is 0.50%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Nestlé's ROE at 32.67% and Mondelez International's ROE at 13.97%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $97.11 for Nestlé and $70.77 for Mondelez International. Over the past year, Nestlé's prices ranged from $96.36 to $117.55, with a yearly change of 21.99%. Mondelez International's prices fluctuated between $62.42 and $77.20, with a yearly change of 23.68%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.