Question: Which stock offers a better return? Nestle (NRSGY) or Kraft (KFT)?
Which one would you buy if market closed for 10 years? Thanks for your thoughts! Happy Holidays!
Answer:
Kraft Foods Inc.(NYSE:KFT) (37.74US) makes and sells packaged food products. Their dividend is around 3%.
Nestle (OTC: NSRGY.PK ) (57.00US) has a projected yield of 3.7% and sells everything from baby food to pet care products. At this time I believe that Nestle is a bit overpriced.
In my opinion, I would purchase Kraft now and Nestle on a correction at around 52. At 52 or so Nestle would be the better return.
In my opinion NSRGY is a much better investment. During the past 5 years NSRGY has generated a 60%++ return and KFT about 5% all from dividends. It is sort of stuck in neutral. Currently though NSRGY is hampered by the EU situation but hey folks over there have to eat too. There is probably a country in the world where NSRGY does not have a presence but one would spend a great deal of time trying to find it. NSRGY revenue 110 billion Swiss Francs. KFT revenue 54 billion dollars. $1=0.94 CHF.
Kraft Foods [NYSE:KFT]
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They are not without debt: short + long debt = about $28Billion over the last 5 quarters
Their average net income over the same time period = about $800Million and rising (currently almost $1Billion)
http://tmx.quotemedia.com/financials.php…
this debt level does not seem to impair the stocks share price growth though
http://stockcharts.com/h-sc/ui?s=KFT&p=D…
It is currently on a bullish run but I think it will stall a little as it is at the top of a curving upper Bollinger band....when the lower BB catches up and narrows we will see if the run continues (1-2 weeks)
The P&F Chat is equally impressive
http://stockcharts.com/def/servlet/SC.pn…
Solid support around $36....it is headed into unknown territory so an upper resistance is hard to predict......a solid dividend paying stock since the post 2008 crash. The dividend is about 3% yield (paid quarterly)with a dividends that were not reduced during the crash of 2008
http://tmx.quotemedia.com/charting.php?q…
Nestle S A [OTCB: NSRGY]
This is a PINK stock...a pretty expensive Pink stock.
It is awkward comparing financials as even on the website I can only see Annual data as of 2010
and the format is not the same as that for Kraft and money is expressed in Swiss Francs (CHF)
http://www.nestle.com/Common/NestleDocum…
It appears to have less debt than Kraft with more net income ...maybe double....but these numbers are fuzzy to me and are one year old...they don't seem to publish a quarterly report. It too has a dividend of 2% yield paid annually in April.
http://stockcharts.com/h-sc/ui?s=NSRGY&p…
From a charting perspective the share price appears to be on the rise and at the start of a breakout.
right now
http://stockcharts.com/def/servlet/SC.pn…
The P&F chart is not as strong as that of Kraft....the support is at about $54.50 and the current resistance is at $59-60....that resistance should be quite strong as it combines with a 200 dayMA. So the current run starting today at $57 may only go for $2-3...if it passes $60 you are looking at another resistance at $61.
Conclusion
For long term swing or investment to hang onto I would go with Kraft foods....I think there is more potential for gain.Also you get more easily digested info to make decisions in the future
But this is my opinion only do your own DD before making a decision.