Post vs Kellogg Which Should You Buy?

Post Holdings and Kellogg Company are two well-known players in the consumer packaged goods industry, with both companies specializing in breakfast cereals and other food products. Post Holdings, known for brands such as Honey Bunches of Oats and Grape-Nuts, has been experiencing steady growth in recent years. On the other hand, Kellogg Company, the maker of popular brands like Frosted Flakes and Special K, has been facing some challenges with declining sales. The stock performance of these two companies has been closely watched by investors looking to capitalize on the breakfast food market trends.

Post or Kellogg?

When comparing Post and Kellogg, 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 Post and Kellogg.

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. Post has a dividend yield of -%, while Kellogg has a dividend yield of 3.48%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Post reports a 5-year dividend growth of 0.00% year and a payout ratio of 2.11%. On the other hand, Kellogg reports a 5-year dividend growth of 1.24% year and a payout ratio of 76.62%.

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 Post P/E ratio at 18.73 and Kellogg's P/E ratio at 27.68. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Post P/B ratio is 1.67 while Kellogg's P/B ratio is 7.62.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Post has seen a 5-year revenue growth of 0.38%, while Kellogg's is -0.02%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Post's ROE at 8.93% and Kellogg's ROE at 30.26%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $109.28 for Post and $80.96 for Kellogg. Over the past year, Post's prices ranged from $82.86 to $118.96, with a yearly change of 43.57%. Kellogg's prices fluctuated between $51.02 and $81.26, with a yearly change of 59.27%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.