Patanjali Foods vs Unilever Which Is More Attractive?

Patanjali Foods and Unilever are two major players in the consumer goods industry, each with their own unique strengths and market positions. Patanjali Foods is an Indian company known for its focus on natural and Ayurvedic products, while Unilever is a global giant with a diverse portfolio of popular brands. Investors looking to compare the stocks of these companies must consider factors such as growth potential, market performance, and brand reputation. Ultimately, the decision on which stock to invest in will depend on an individual's investment goals and risk tolerance.

Patanjali Foods or Unilever?

When comparing Patanjali Foods and Unilever, 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 Patanjali Foods and Unilever.

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. Patanjali Foods has a dividend yield of 0.76%, while Unilever has a dividend yield of 3.02%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Patanjali Foods reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Unilever reports a 5-year dividend growth of 0.22% year and a payout ratio of 64.35%.

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 Patanjali Foods P/E ratio at 67.26 and Unilever's P/E ratio at 21.14. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Patanjali Foods P/B ratio is 6.17 while Unilever's P/B ratio is 6.91.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Patanjali Foods has seen a 5-year revenue growth of 1.04%, while Unilever's is 0.24%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Patanjali Foods's ROE at 9.59% and Unilever's ROE at 34.58%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹1825.05 for Patanjali Foods and $58.38 for Unilever. Over the past year, Patanjali Foods's prices ranged from ₹1169.95 to ₹1992.20, with a yearly change of 70.28%. Unilever's prices fluctuated between $46.46 and $65.87, with a yearly change of 41.78%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.