Best Stock to Buy Right Now: Coca-Cola vs. Kraft Heinz

Motley Fool12-01

Both companies are dealing with declining sales of late. Coca-Cola has paid and raised its dividend for 52 consecutive years. Right now, Kraft Heinz has a higher dividend yield than Coca...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2488665566?lang=en_US&edition=fundamental","thumbnail":"https://g.foolcdn.com/image/?url=https%3A%2F%2Fg.foolcdn.com%2Feditorial%2Fimages%2F795570%2Fcocacola.webp&op=resize&w=165&h=104","is_english":true,"pubTime":"2024-12-01 20:15","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2488665566","market":"us","top_or_hot":-1,"title":"Best Stock to Buy Right Now: Coca-Cola vs. Kraft Heinz","media":"Motley Fool","content":"<div>\n<p>Both companies are dealing with declining sales of late.\n\n\n\n\n\n\n\nCoca-Cola has paid and raised its dividend for 52 consecutive years.\n\n\n\n\n\n\n\nRight now, Kraft Heinz has a higher dividend yield than Coca...</p>\n\n<a href=\"https://www.fool.com/investing/2024/12/01/best-stock-to-buy-right-now-coca-cola-kraft-heinz/\">Source Link</a>\n\n</div>\n","source":"fool_stock","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Best Stock to Buy Right Now: Coca-Cola vs. Kraft Heinz</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nBest Stock to Buy Right Now: Coca-Cola vs. Kraft Heinz\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-01 20:15 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2024/12/01/best-stock-to-buy-right-now-coca-cola-kraft-heinz/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Both companies are dealing with declining sales of late.\n\n\n\n\n\n\n\nCoca-Cola has paid and raised its dividend for 52 consecutive years.\n\n\n\n\n\n\n\nRight now, Kraft Heinz has a higher dividend yield than Coca...</p>\n\n<a href=\"https://www.fool.com/investing/2024/12/01/best-stock-to-buy-right-now-coca-cola-kraft-heinz/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"SG9999014542.SGD","symbol_name":"United Income Focus Trust Acc SGD","start_time":0,"source_url":"https://www.fool.com/investing/2024/12/01/best-stock-to-buy-right-now-coca-cola-kraft-heinz/","article_id":"2488665566","we_media_id":null,"thumbnails":["https://g.foolcdn.com/image/?url=https%3A%2F%2Fg.foolcdn.com%2Feditorial%2Fimages%2F795570%2Fcocacola.webp&op=resize&w=165&h=104"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2488665566","pubTimestamp":1733055300,"columns":[],"sourceInfo":{"source_id":"fool_stock","name":"Motley Fool"},"weMediaInfo":null,"summary":"Here are two favorite stocks of Warren Buffett.","collect":0,"end_time":0,"defaultTopTitle":"fool.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"SG9999014542.SGD":"United Income Focus Trust Acc SGD","LU0957791311.USD":"THREADNEEDLE (LUX) GLOBAL FOCUS \"ZU\" (USD) ACC","LU1815333072.USD":"THREADNEEDLE (LUX) GLOBAL FOCUS \"AUP\" (USD) INC","LU1894683348.USD":"AMUNDI FUNDS US EQUITY RESEARCH VALUE \"A2\" (USD) INC","LU1201861249.SGD":"Natixis Harris Associates US Equity PA SGD-H","IE00B42XCP33.USD":"GUINNESS GLOBAL EQUITY INCOME \"C\" (USD) INC","LU0256863811.USD":"ALLIANZ US EQUITY \"A\" INC","LU1571399168.USD":"ALLSPRING GLOBAL LONG/SHORT EQUITY \"IP\" (USD) ACC","BK4212":"包装食品与肉类","LU0265550359.USD":"BGF SYSTEMATIC GLOBAL ENHANCED EQUITY YIELD \"A2\" (USD) ACC","IE00BLSP4239.USD":"Legg Mason ClearBridge - Tactical Dividend Income A Mdis USD Plus","KHC":"卡夫亨氏","LU0234570918.USD":"高盛全球核心股票组合Acc Close","LU0170899867.USD":"EASTSPRING INVESTMENTS WORLD VALUE EQUITY  \"A\" (USD) ACC","BK4533":"AQR资本管理(全球第二大对冲基金)","LU0912757837.SGD":"JPMorgan Investment Funds - Global Income A (mth) SGD-H","LU1670710588.SGD":"M&G (LUX) GLOBAL DIVIDEND \"A\" (SGD) ACC","LU2237443549.SGD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A MIncA SGD-H","LU2125154778.USD":"ALLSPRING GLOBAL EQUITY ENHANCED INCOME \"A\" (USD) INC","IE00B1XK9C88.USD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A\" (USD) ACC","LU1868837300.USD":"CT (LUX) I AMERICAN FUND \"9\" (USD) ACC","BK4559":"巴菲特持仓","IE00BKDWB100.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5H\" (SGDHDG) ACC","LU2237443978.SGD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A Acc SGD-H","SG9999002232.USD":"Allianz Global High Payout USD","LU1914381329.SGD":"Allianz Best Styles Global Equity Cl ET Acc H2-SGD","BK4588":"碎股","LU1670711123.USD":"M&G (LUX) GLOBAL DIVIDEND \"A\" (USD) INC","LU2237957902.USD":"NIKKO AM GLOBAL EQUITY \"F\" (USD) ACC","LU1868837136.USD":"CT (LUX) I AMERICAN \"8\" (USD) ACC","SG9999002224.SGD":"Allianz Global High Payout SGD","LU0823417653.USD":"BNP PARIBAS SUSTAINABLE GLOBAL LOW VOL EQUITY \"C\" (USD) ACC","LU1894683264.USD":"AMUNDI FUNDS US EQUITY RESEARCH VALUE \"A2\" (USD) ACC","LU1868836591.USD":"CT (LUX) I AMERICAN \"1U\"(USD) ACC","LU2264538146.SGD":"Fullerton Lux Funds - Global Absolute Alpha A Acc SGD","IE00BK4W5L77.USD":"HSBC GLOBAL FUNDS ICAV US EQUITY INDEX \"HC\" (USD) ACC","LU0795875086.SGD":"JPMorgan Investment Funds - Global Income A (div) SGD","BRK.B":"伯克希尔B","LU0823417737.USD":"BNP PARIBAS SUSTAINABLE GLOBAL LOW VOL EQUITY \"C\" (USD) INC","KO":"可口可乐","BK4581":"高盛持仓","SG9999014567.USD":"UOB UNITED INCOME FOCUS TRUST FUND (USD) ACC","LU0130102774.USD":"Natixis Harris Associates US Equity RA USD","LU0683600562.USD":"AB SELECT US EQUITY \"A\" (USD) ACC","LU1196500208.SGD":"NORDEA STABLE RETURN \"HB\" (SGDHDG) ACC","LU1670711040.USD":"M&G (LUX) GLOBAL DIVIDEND \"A\" (USD) ACC","LU0157215616.USD":"FIDELITY GLOBAL FOCUS \"A\" INC","LU0323591593.USD":"SCHRODER ISF QEP GLOBAL QUALITY \"A\" (USD) ACC","SG9999015341.SGD":"United Income Focus Trust Acc SGD-H","LU1074936037.SGD":"JPMorgan Funds - US Value A (acc) SGD"},"translate_title":"目前最值得购买的股票：可口可乐与卡夫亨氏","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"KHC":1,"KO":1,"BRK.B":0.68},"content_text":"Both companies are dealing with declining sales of late.\n\n\n\n\n\n\n\nCoca-Cola has paid and raised its dividend for 52 consecutive years.\n\n\n\n\n\n\n\nRight now, Kraft Heinz has a higher dividend yield than Coca-Cola.\n\nWhen it comes to consumer goods, few companies can rival the global recognition of Coca-Cola (KO 0.21%) and Kraft Heinz (KHC 1.40%). Both stocks offer an investment in mature, dividend-paying businesses and are also longtime holdings of Warren Buffett's Berkshire Hathaway, which owns a 9.3% and 26.9% stake, respectively. Notably, Coca-Cola and Kraft Heinz have lagged the market benchmark S&P 500 index in recent years but have offered investors stability in their portfolios as their brand offerings continue to endure. So, let's check in with these two market leaders to see which stock stands out as the best to buy today.Let's compare their recent financialsBefore examining each company's revenue and net income, it's worth noting that Coca-Cola is a much larger company than Kraft Heinz, with a market capitalization of $278 billion compared to Kraft Heinz's $39 billion. For Coca-Cola's most recently reported quarter, the company generated $11.9 billion in revenue, representing a 0.8% decrease from the same period a year ago. CEO James Quincey pointed to weakness in China for the sales decline but remains optimistic about the future, stating on the company's most recent earnings call, \"We see light at the end of the tunnel and long-term investment opportunities for the China business.\" Similarly, in Q3 2024, Kraft Heinz experienced a year-over-year sales decline of 2.8%, equating to $6.4 billion. In its earnings release, management blamed the sales slump, particularly among its Lunchables brand, on \"continued shifts in consumer behavior due to economic uncertainty.\" As for the bottom line, both companies are profitable by certain metrics but faced complications in the third quarter. First, Coca-Cola generated nearly $2.9 billion in net income for the quarter, a decline of 7.6% year over year. However, looking at the company's free cash flow, it lost $1.7 billion. That's because the company is in ongoing tax litigation with the IRS that dates back to 2007, and Coke deposited $6 billion in escrow during the quarter as its dispute continues. Comparatively, Kraft Heinz reported a net loss of $290 million vs. a positive $262 million a  year earlier, mainly due to a $1.4 billion impairment charge led by its aforementioned struggling Lunchables brand. However, looking at free cash flow, which doesn't include the impairment charge, the company generated $849 million for the quarter, representing a 24.3% year-over-year decline.Both stocks prioritize dividendsMature companies like Coca-Cola and Kraft Heinz generally seek to distribute profits through dividends and share repurchases. Coca-Cola currently offers a quarterly dividend of $0.485 per share, translating to a 3% dividend yield. As a member of the elite Dividend Kings club, the company has consistently increased its dividend for over 50 years, maintaining a streak of 62 years.When evaluating dividend stocks, it is crucial to consider the payout ratio, which shows the portion of earnings distributed as dividends. A payout ratio exceeding 80% for an extended time could signal potential issues with sustaining or raising dividends. While Coca-Cola's payout ratio stands at a relatively high 78%, it has remained below 75% in recent years, indicating its future dividend is likely secure.KO Payout Ratio data by YChartsComparatively, Kraft Heinz offers a higher dividend yield of 5%, with a quarterly payout of $0.40 per share. The company has consistently paid dividends since 2013 but has not raised its payout in the past five years. At first glance, Kraft Heinz's payout ratio of 142% raises concerns. However, this figure is distorted by a $2.3 billion write-off in 2024 related to goodwill and intangible assets, particularly its struggling Lunchables brand. Adjusting for this one-time impairment, Kraft Heinz's payout ratio, based on management's projected 2024 earnings per share of $3.01 to $3.07, is a more manageable 52% to 53%.Share repurchase programs, which enhance shareholder value by increasing the ownership stake of remaining investors, are utilized by both management teams but take a back seat to dividends. Over the past three years, Coca-Cola has repurchased just 0.4% of its outstanding shares, while Kraft Heinz has reduced its share count by 1.3%.KO Shares Outstanding data by YChartsWhich is the better stock to buy today?Before buying any stock, it's important to examine its valuation. One metric to use is the forward price-to-earnings (P/E) ratio, which measures a company's stock price against expected earnings over the next 12 months and can help determine its valuation by comparing it to its historical averages.As of this writing, Coca-Cola trades at a forward P/E of 22.7, while Kraft Heinz trades at a lower forward P/E of 10.7. Both stocks are trading below their five-year median forward P/E, suggesting a fair or cheap valuation. KO PE Ratio (Forward) data by YChartsOverall, both companies are incredibly similar despite their market cap valuation disparity in facing sales pressures from changing consumer habits. Given those challenges, as well as others outlined here, neither stock is likely to outperform the overall market in the near term. However, the stocks can still reward income-seeking investors with higher-than-average dividends.If you choose between the two stocks, Coca-Cola appears to be the better buy due to its sales holding up better than Kraft Heinz's and its track record of increasing its dividend annually.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.4","shortVersion":"4.29.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2488665566"}