Nongshim vs Ottogi Which Outperforms?

Nongshim and Ottogi are two renowned South Korean food companies that have established a strong foothold in the global market. Both companies specialize in the production of instant noodles, snacks, and other food products, making them direct competitors in the industry. Investors keen on the food sector may be interested in comparing the performance of Nongshim and Ottogi stocks to make informed investment decisions. Analyzing factors such as revenue growth, market share, and innovation can provide valuable insights into the prospects of these companies in the stock market.

Nongshim or Ottogi?

When comparing Nongshim and Ottogi, 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 Nongshim and Ottogi.

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. Nongshim has a dividend yield of 1.48%, while Ottogi has a dividend yield of 2.27%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Nongshim reports a 5-year dividend growth of 4.56% year and a payout ratio of 18.64%. On the other hand, Ottogi reports a 5-year dividend growth of 3.71% year and a payout ratio of 20.76%.

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 Nongshim P/E ratio at 12.62 and Ottogi's P/E ratio at 8.67. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Nongshim P/B ratio is 0.76 while Ottogi's P/B ratio is 0.67.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Nongshim has seen a 5-year revenue growth of 0.52%, while Ottogi's is 0.47%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Nongshim's ROE at 6.18% and Ottogi's ROE at 7.90%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₩334500.00 for Nongshim and ₩393500.00 for Ottogi. Over the past year, Nongshim's prices ranged from ₩317000.00 to ₩599000.00, with a yearly change of 88.96%. Ottogi's prices fluctuated between ₩375500.00 and ₩513000.00, with a yearly change of 36.62%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.