Nestlé vs Stove Kraft Which Is a Smarter Choice?

Nestlé and Stove Kraft are two prominent players in the consumer goods industry, with a focus on food and beverage products. While Nestlé is a multinational giant known for its wide range of popular brands and products, Stove Kraft is a rapidly growing Indian company specializing in kitchen appliances. Both companies have solid financial performance and strong market presence, making them attractive investment options for investors looking to capitalize on the growing demand for consumer goods in the market.

Nestlé or Stove Kraft?

When comparing Nestlé and Stove Kraft, 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 Stove Kraft.

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 6.7%, while Stove Kraft has a dividend yield of 0.31%. 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, Stove Kraft reports a 5-year dividend growth of 0.00% 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 Nestlé P/E ratio at 18.40 and Stove Kraft's P/E ratio at 77.25. 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 6.27 while Stove Kraft's P/B ratio is 5.81.

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 Stove Kraft's is 1.12%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Nestlé's ROE at 32.67% and Stove Kraft's ROE at 7.79%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $89.56 for Nestlé and ₹785.10 for Stove Kraft. Over the past year, Nestlé's prices ranged from $89.56 to $117.55, with a yearly change of 31.25%. Stove Kraft's prices fluctuated between ₹409.50 and ₹967.50, with a yearly change of 136.26%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.