Ottogi vs Kewpie Which Is More Favorable?

Ottogi and Kewpie are two food companies that have gained recognition in the culinary world for their high-quality products. Both companies have experienced success in the stock market, with Ottogi being a leading South Korean food manufacturer and Kewpie being a well-known Japanese brand. Investors have shown interest in both stocks due to their strong performance and potential for growth. This comparison will analyze the strengths and weaknesses of Ottogi and Kewpie stocks to provide insights for potential investors.

Ottogi or Kewpie?

When comparing Ottogi and Kewpie, 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 Ottogi and Kewpie.

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. Ottogi has a dividend yield of 2.32%, while Kewpie has a dividend yield of 1.39%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Ottogi reports a 5-year dividend growth of 3.71% year and a payout ratio of 19.47%. On the other hand, Kewpie reports a 5-year dividend growth of 5.64% 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 Ottogi P/E ratio at 7.96 and Kewpie's P/E ratio at 22.80. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Ottogi P/B ratio is 0.66 while Kewpie's P/B ratio is 1.67.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Ottogi has seen a 5-year revenue growth of 0.47%, while Kewpie's is -0.16%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Ottogi's ROE at 8.54% and Kewpie's ROE at 7.56%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₩387000.00 for Ottogi and ¥3572.00 for Kewpie. Over the past year, Ottogi's prices ranged from ₩376500.00 to ₩513000.00, with a yearly change of 36.25%. Kewpie's prices fluctuated between ¥2414.50 and ¥3896.00, with a yearly change of 61.36%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.