Hershey (HSY) Competitors

Kraft Heinz (NASDAQ:KHC) and Hershey (NYSE:HSY) are both large-cap consumer staples companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, valuation, media sentiment, dividends, profitability, analyst recommendations, institutional ownership and risk.

Does the media favor KHC or HSY?

In the previous week, Hershey had 6 more articles in the media than Kraft Heinz. MarketBeat recorded 26 mentions for Hershey and 20 mentions for Kraft Heinz. Hershey's average media sentiment score of 1.30 beat Kraft Heinz's score of 0.96 indicating that Hershey is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Kraft Heinz	11 Very Positive mention(s)	3 Positive mention(s)	3 Neutral mention(s)	2 Negative mention(s)	0 Very Negative mention(s)	Positive
Hershey	18 Very Positive mention(s)	2 Positive mention(s)	5 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has better earnings and valuation, KHC or HSY?

Kraft Heinz has higher revenue and earnings than Hershey. Kraft Heinz is trading at a lower price-to-earnings ratio than Hershey, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kraft Heinz	$25.85B	1.15	$2.74B	-$4.49	-5.59
Hershey	$11.30B	3.51	$2.22B	$7.53	25.97

Which has more volatility and risk, KHC or HSY?

Kraft Heinz has a beta of 0.16, suggesting that its share price is 84% less volatile than the S&P 500. Comparatively, Hershey has a beta of 0.26, suggesting that its share price is 74% less volatile than the S&P 500.

Do insiders and institutionals have more ownership in KHC or HSY?

78.2% of Kraft Heinz shares are held by institutional investors. Comparatively, 58.0% of Hershey shares are held by institutional investors. 0.4% of Kraft Heinz shares are held by insiders. Comparatively, 0.3% of Hershey shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Is KHC or HSY more profitable?

Hershey has a net margin of 13.54% compared to Kraft Heinz's net margin of -20.83%. Hershey's return on equity of 37.36% beat Kraft Heinz's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Kraft Heinz	-20.83%	7.40%	4.01%
Hershey	13.54%	37.36%	12.73%

Do analysts rate KHC or HSY?

Kraft Heinz presently has a consensus target price of $29.71, indicating a potential upside of 18.44%. Hershey has a consensus target price of $175.89, indicating a potential downside of 10.05%. Given Kraft Heinz's stronger consensus rating and higher probable upside, analysts clearly believe Kraft Heinz is more favorable than Hershey.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kraft Heinz	3 Sell rating(s)	16 Hold rating(s)	0 Buy rating(s)	1 Strong Buy rating(s)	1.95
Hershey	4 Sell rating(s)	15 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	1.90

Is KHC or HSY a better dividend stock?

Kraft Heinz pays an annual dividend of $1.60 per share and has a dividend yield of 6.4%. Hershey pays an annual dividend of $5.48 per share and has a dividend yield of 2.8%. Kraft Heinz pays out -35.6% of its earnings in the form of a dividend. Hershey pays out 72.8% 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 raised its dividend for 15 consecutive years. Kraft Heinz is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Hershey beats Kraft Heinz on 11 of the 20 factors compared between the two stocks.