Is Kraft riskier than Amazon Inc (NASDAQ:AMZN)?


USD 38.90  0.34  0.88%   

Today we may see the proof that Amazon would recover slower from the latest slide as its shares fell 1.57% to Kraft Heinz's 0.63%. As many rational traders are trying to avoid consumer defensive space, it makes sense to go over Kraft Heinz a little further and understand how it stands against Amazon and other similar entities. We are going to analyze some of the competitive aspects of both Kraft and Amazon.
Published over a month ago
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By analyzing existing technical indicators between Kraft Heinz and Amazon, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Amazon with a short position in Kraft Heinz. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Kraft Heinz has an asset utilization ratio of 20.84 percent. This suggests that the company is making $0.21 for each dollar of assets. An increasing asset utilization means that Kraft Heinz is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Kraft or Aramark is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

Understending Kraft Heinz dividends

A dividend is the distribution of a portion of Kraft Heinz earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Kraft Heinz dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Kraft one year expected dividend income is about $1.07 per share.
Kraft Heinz Preferred Dividends Income Statement Impact is projected to decrease significantly based on the last few years of reporting. The past year's Preferred Dividends Income Statement Impact was at 162 Million. The current year Dividend Yield is expected to grow to 0.0374, whereas Payment of Dividends and Other Cash Distributions is forecasted to decline to (3.9 B).
Last ReportedProjected for 2022
Preferred Dividends Income Statement Impact162 M166.3 M
Payment of Dividends and Other Cash Distributions-3.6 B-3.9 B
Dividend Yield 0.027  0.0374 
Dividends per Basic Common Share 2.35  2.07 
Investing in dividend-paying stocks, such as Kraft Heinz is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Kraft Heinz must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Kraft Heinz. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Kraft Heinz's Liquidity

Kraft Heinz financial leverage refers to using borrowed capital as a funding source to finance Kraft Heinz ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Kraft Heinz financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Kraft Heinz's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Kraft Heinz, but it might be worth checking our own buy vs. sell analysis

Correlation Between Kraft and Aramark Holdings Corp

In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Kraft Heinz together with similar or unrelated positions with a negative correlation. For example, you can also add Aramark Holdings to your portfolio. If Aramark Holdings is not perfectly correlated to Kraft Heinz it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Kraft Heinz, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Please check pair correlation details between KHC and ARMK for more information.

Sale by La Lande Rashida of 30000 shares of Kraft Heinz

Legal trades by Kraft Heinz insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Kraft insider trading alert for sale of common stock by La Lande Rashida, EVP Global GC & CSCAO, on 23rd of August 2022. This event was filed by Kraft Heinz Co with SEC on 2022-08-23. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

What is the case for Kraft Heinz Investors

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Lets now take a look at Kraft Heinz revenue. Based on the latest financial disclosure, Kraft Heinz reported 25.63 B of revenue. This is 72.54% higher than that of the Consumer Defensive sector and 208.16% higher than that of the Packaged Foods industry. The revenue for all United States stocks is 171.65% lower than that of Kraft Heinz. As for Amazon we see revenue of 485.9 B, which is much higher than that of the Packaged Foods

485.9 B
KHC25.63 Billion4.93
Sector8.32 Billion1.6
AMZN485.9 Billion93.47

Kraft Heinz has 95 percent odds to go over $34 this year

Current market risk adjusted performance indicator falls down to -0.72. Possible price jump? Kraft Heinz exhibits very low volatility with skewness of -1.54 and kurtosis of 3.89. However, we advise investors to further study Kraft Heinz technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Kraft Heinz's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Kraft Heinz's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Final Take On Kraft Heinz

Whereas some other companies in the packaged foods industry are either recovering or due for a correction, Kraft may not be as strong as the others in terms of longer-term growth potentials. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither buy nor exit any shares of Kraft Heinz at this time. The Kraft Heinz risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Kraft Heinz.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Kraft Heinz. Please refer to our Terms of Use for any information regarding our disclosure principles.

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