Seek Returns logo

HSY vs. KDP: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at HSY and KDP, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolHSYKDP
Company NameThe Hershey CompanyKeurig Dr Pepper Inc.
CountryUnited StatesUnited States
GICS SectorConsumer StaplesConsumer Staples
GICS IndustryFood ProductsBeverages
Market Capitalization39.64 billion USD34.75 billion USD
ExchangeNYSENasdaqGS
Listing DateMarch 17, 1980May 7, 2008
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of HSY and KDP by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

HSY vs. KDP: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolHSYKDP
5-Day Price Return3.46%-0.62%
13-Week Price Return20.75%-23.98%
26-Week Price Return17.22%-28.21%
52-Week Price Return4.28%-29.24%
Month-to-Date Return4.55%0.27%
Year-to-Date Return15.48%-20.36%
10-Day Avg. Volume1.26M16.76M
3-Month Avg. Volume1.60M14.71M
3-Month Volatility26.39%33.59%
Beta0.200.36

Profitability

Return on Equity (TTM)

HSY

33.77%

Food Products Industry

Max
30.51%
Q3
16.54%
Median
10.46%
Q1
6.76%
Min
-2.18%

HSY’s Return on Equity of 33.77% is exceptionally high, placing it well beyond the typical range for the Food Products industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

KDP

6.23%

Beverages Industry

Max
45.90%
Q3
22.74%
Median
10.10%
Q1
6.35%
Min
-13.21%

KDP’s Return on Equity of 6.23% is in the lower quartile for the Beverages industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.

HSY vs. KDP: A comparison of their Return on Equity (TTM) against their respective Food Products and Beverages industry benchmarks.

Net Profit Margin (TTM)

HSY

13.54%

Food Products Industry

Max
18.44%
Q3
10.21%
Median
6.29%
Q1
3.53%
Min
-0.80%

A Net Profit Margin of 13.54% places HSY in the upper quartile for the Food Products industry, signifying strong profitability and more effective cost management than most of its peers.

KDP

9.75%

Beverages Industry

Max
21.38%
Q3
12.24%
Median
8.43%
Q1
5.97%
Min
0.65%

KDP’s Net Profit Margin of 9.75% is aligned with the median group of its peers in the Beverages industry. This indicates its ability to convert revenue into profit is typical for the sector.

HSY vs. KDP: A comparison of their Net Profit Margin (TTM) against their respective Food Products and Beverages industry benchmarks.

Operating Profit Margin (TTM)

HSY

18.28%

Food Products Industry

Max
24.83%
Q3
14.29%
Median
9.64%
Q1
6.11%
Min
0.08%

An Operating Profit Margin of 18.28% places HSY in the upper quartile for the Food Products industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

KDP

16.89%

Beverages Industry

Max
29.32%
Q3
20.15%
Median
13.14%
Q1
10.74%
Min
1.24%

KDP’s Operating Profit Margin of 16.89% is around the midpoint for the Beverages industry, indicating that its efficiency in managing core business operations is typical for the sector.

HSY vs. KDP: A comparison of their Operating Profit Margin (TTM) against their respective Food Products and Beverages industry benchmarks.

Profitability at a Glance

SymbolHSYKDP
Return on Equity (TTM)33.77%6.23%
Return on Assets (TTM)11.51%2.87%
Net Profit Margin (TTM)13.54%9.75%
Operating Profit Margin (TTM)18.28%16.89%
Gross Profit Margin (TTM)40.13%54.93%

Financial Strength

Current Ratio (MRQ)

HSY

1.53

Food Products Industry

Max
3.99
Q3
2.39
Median
1.62
Q1
1.23
Min
0.57

HSY’s Current Ratio of 1.53 aligns with the median group of the Food Products industry, indicating that its short-term liquidity is in line with its sector peers.

KDP

0.64

Beverages Industry

Max
3.52
Q3
2.00
Median
1.22
Q1
0.87
Min
0.55

KDP’s Current Ratio of 0.64 falls into the lower quartile for the Beverages industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

HSY vs. KDP: A comparison of their Current Ratio (MRQ) against their respective Food Products and Beverages industry benchmarks.

Debt-to-Equity Ratio (MRQ)

HSY

1.25

Food Products Industry

Max
1.92
Q3
0.92
Median
0.51
Q1
0.25
Min
0.00

HSY’s leverage is in the upper quartile of the Food Products industry, with a Debt-to-Equity Ratio of 1.25. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

KDP

0.67

Beverages Industry

Max
2.14
Q3
1.14
Median
0.74
Q1
0.37
Min
0.00

KDP’s Debt-to-Equity Ratio of 0.67 is typical for the Beverages industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

HSY vs. KDP: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Food Products and Beverages industry benchmarks.

Interest Coverage Ratio (TTM)

HSY

15.93

Food Products Industry

Max
65.06
Q3
29.45
Median
9.43
Q1
4.70
Min
-1.69

HSY’s Interest Coverage Ratio of 15.93 is positioned comfortably within the norm for the Food Products industry, indicating a standard and healthy capacity to cover its interest payments.

KDP

3.60

Beverages Industry

Max
78.96
Q3
42.68
Median
10.96
Q1
3.86
Min
0.81

In the lower quartile for the Beverages industry, KDP’s Interest Coverage Ratio of 3.60 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.

HSY vs. KDP: A comparison of their Interest Coverage Ratio (TTM) against their respective Food Products and Beverages industry benchmarks.

Financial Strength at a Glance

SymbolHSYKDP
Current Ratio (MRQ)1.530.64
Quick Ratio (MRQ)0.850.33
Debt-to-Equity Ratio (MRQ)1.250.67
Interest Coverage Ratio (TTM)15.933.60

Growth

Revenue Growth

HSY vs. KDP: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

HSY vs. KDP: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

HSY

2.73%

Food Products Industry

Max
8.09%
Q3
4.48%
Median
2.69%
Q1
1.66%
Min
0.00%

HSY’s Dividend Yield of 2.73% is consistent with its peers in the Food Products industry, providing a dividend return that is standard for its sector.

KDP

3.55%

Beverages Industry

Max
7.92%
Q3
4.37%
Median
3.32%
Q1
1.98%
Min
0.00%

KDP’s Dividend Yield of 3.55% is consistent with its peers in the Beverages industry, providing a dividend return that is standard for its sector.

HSY vs. KDP: A comparison of their Dividend Yield (TTM) against their respective Food Products and Beverages industry benchmarks.

Dividend Payout Ratio (TTM)

HSY

70.84%

Food Products Industry

Max
216.00%
Q3
112.15%
Median
72.83%
Q1
41.56%
Min
0.00%

HSY’s Dividend Payout Ratio of 70.84% is within the typical range for the Food Products industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

KDP

54.58%

Beverages Industry

Max
188.65%
Q3
104.55%
Median
72.60%
Q1
40.31%
Min
0.00%

KDP’s Dividend Payout Ratio of 54.58% is within the typical range for the Beverages industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

HSY vs. KDP: A comparison of their Dividend Payout Ratio (TTM) against their respective Food Products and Beverages industry benchmarks.

Dividend at a Glance

SymbolHSYKDP
Dividend Yield (TTM)2.73%3.55%
Dividend Payout Ratio (TTM)70.84%54.58%

Valuation

Price-to-Earnings Ratio (TTM)

HSY

25.93

Food Products Industry

Max
41.70
Q3
24.61
Median
17.81
Q1
12.59
Min
3.07

A P/E Ratio of 25.93 places HSY in the upper quartile for the Food Products industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

KDP

22.53

Beverages Industry

Max
35.25
Q3
22.66
Median
17.17
Q1
13.65
Min
4.77

KDP’s P/E Ratio of 22.53 is within the middle range for the Beverages industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

HSY vs. KDP: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Food Products and Beverages industry benchmarks.

Price-to-Sales Ratio (TTM)

HSY

3.51

Food Products Industry

Max
3.33
Q3
1.74
Median
1.10
Q1
0.66
Min
0.11

With a P/S Ratio of 3.51, HSY trades at a valuation that eclipses even the highest in the Food Products industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

KDP

2.20

Beverages Industry

Max
4.06
Q3
2.24
Median
1.34
Q1
0.86
Min
0.39

KDP’s P/S Ratio of 2.20 aligns with the market consensus for the Beverages industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

HSY vs. KDP: A comparison of their Price-to-Sales Ratio (TTM) against their respective Food Products and Beverages industry benchmarks.

Price-to-Book Ratio (MRQ)

HSY

7.45

Food Products Industry

Max
5.01
Q3
2.98
Median
1.93
Q1
1.28
Min
0.47

At 7.45, HSY’s P/B Ratio is at an extreme premium to the Food Products industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

KDP

1.80

Beverages Industry

Max
6.90
Q3
4.23
Median
2.20
Q1
1.51
Min
0.69

KDP’s P/B Ratio of 1.80 is within the conventional range for the Beverages industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

HSY vs. KDP: A comparison of their Price-to-Book Ratio (MRQ) against their respective Food Products and Beverages industry benchmarks.

Valuation at a Glance

SymbolHSYKDP
Price-to-Earnings Ratio (TTM)25.9322.53
Price-to-Sales Ratio (TTM)3.512.20
Price-to-Book Ratio (MRQ)7.451.80
Price-to-Free Cash Flow Ratio (TTM)21.7821.97