Hershey (NYSE: HSY) and Glanbia (OTCMKTS:GLAPY) are both consumer staples companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, dividends, analyst recommendations, earnings and institutional ownership.
Hershey pays an annual dividend of $2.62 per share and has a dividend yield of 2.6%. Glanbia pays an annual dividend of $1.95 per share and has a dividend yield of 2.3%. Hershey pays out 55.0% of its earnings in the form of a dividend. Glanbia pays out 38.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Hershey has increased its dividend for 8 consecutive years. Hershey is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Hershey and Glanbia’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current recommendations and price targets for Hershey and Glanbia, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Hershey presently has a consensus price target of $110.69, suggesting a potential upside of 11.86%. Given Hershey’s higher possible upside, equities research analysts plainly believe Hershey is more favorable than Glanbia.
Risk & Volatility
Hershey has a beta of 0.36, meaning that its stock price is 64% less volatile than the S&P 500. Comparatively, Glanbia has a beta of -0.63, meaning that its stock price is 163% less volatile than the S&P 500.
Insider & Institutional Ownership
52.6% of Hershey shares are owned by institutional investors. Comparatively, 0.0% of Glanbia shares are owned by institutional investors. 0.9% of Hershey shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Hershey and Glanbia’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Hershey||$7.52 billion||2.77||$782.98 million||$4.76||20.79|
|Glanbia||$2.70 billion||1.86||$372.10 million||$5.04||16.80|
Hershey has higher revenue and earnings than Glanbia. Glanbia is trading at a lower price-to-earnings ratio than Hershey, indicating that it is currently the more affordable of the two stocks.
Hershey beats Glanbia on 13 of the 15 factors compared between the two stocks.
The Hershey Company is a producer of chocolate in North America. The Company’s principal product offerings include chocolate and non-chocolate confectionery products; gum and mint refreshment products; pantry items, such as baking ingredients and beverages, and snack items, such as spreads, meat snacks, bars and snack bites and mixes. Its segments include North America, and International and Other. The North America segment includes its chocolate and non-chocolate confectionery business, as well as its grocery and snacks business. This includes developing and growing its business in chocolate and non-chocolate confectionery, pantry, food service and other snacking product lines. The Company distributes and sells confectionery products in export markets of Asia, Latin America, the Middle East, Europe, Africa and other regions. As of December 31, 2016, the Company marketed, sold and distributed its products under more than 80 brand names in approximately 70 countries across the world.
Glanbia plc is a global nutrition company. The Company operates through two segments: Glanbia Performance Nutrition and Glanbia Nutritionals. The Company’s Glanbia Performance Nutrition segment includes performance nutrition products. Its products are sold through a range of channels, including specialty retail, the Internet and gyms in a range of formats, including powders, bars and ready-to-drink beverages. The Company’s Glanbia Nutritionals segment provides nutritional solutions. It manufactures and sells cheese, dairy and non-dairy nutritional ingredients and vitamin and mineral premixes targeting the market focus on health and nutrition.
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