Hershey Co (HSY): A Sweet Stock for Investors

Nestle (ADR) (NASDAQOTH:NSRGY) has strong brands like Butterfinger, Crunch and Wonka, which are also the most competitive. Not only confectionery products, as Nestle sells everything from bottled water to pet food. If I compare the financial performance, Nestle’s return is 10% vis-à-vis Hershey’s annualized five-year return of 20%.

Coming to growth metrics, Nestle’s five year EPS growth rate is projected to be 7% compared to Hershey’s 25%. Another metrics is return on equity (ROE), which gives an idea of how much profit a company generates with the money shareholders have invested. The ROE figure of Hershey is 71%, which suggests that it is quite profitable and has effectively utilized shareholders’ money. Altogether, in spite of Nestle’s diverse portfolio and wider reach, Hershey is likely to score more points than Nestle.

Hershey: Creating a impact for more than 100 years

For years now, Hershey Co (NYSE:HSY) has been producing a positive impact in several communities around the world. It has been hitting the sweet spot for investors for years now. Perceived as a trusted brand, Hershey has huge brand equity and will always remain in the hearts of the common people. It has been performing better than most of its peers in the confectionery market. This strength, along with its new product lines and being investor friendly, makes me believe that the stock will continue to provide consistent returns in the future.

The article A Sweet Stock for Investors originally appeared on Fool.com and is written by Tanya Kanodia.

Tanya Kanodia has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Tanya is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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