HSY (Hershey Co) vs S&P 500 Comparison

HSY

S&P 500

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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HSY

S&P 500

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1Y 3Y 5Y 10Y 15Y 20Y

HSY

S&P 500

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Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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S&P 500

HSY

NESN

MDLZ

OCB

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1Y 3Y 5Y 10Y 15Y 20Y

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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Hershey Co
Glance View

Economic Moat

None

Market Cap

32.8B USD

Industry

Food Products

In the heart of Pennsylvania, amid the rolling hills, Hershey Co. has crafted a legacy as enduring as its rich, cocoa-laden confections. Founded by Milton S. Hershey in 1894, the company began its journey with the ambitious vision of making chocolate accessible to everyone, not just the elite. Today, Hershey Co. stands as a titan in the global confectionery market, renowned for its iconic chocolate bars, Reese's peanut butter cups, and a diverse array of sweet treats. Operating within three primary segments—North America's Confectionery, International and Other, and North America's Salty Snacks—the company skillfully navigates the complexities of a billion-dollar industry. It combines innovation with its storied brand image to deliver products that resonate with consumers globally. Central to its success, Hershey's business model hinges on producing and marketing its goods across a well-oiled distribution network that taps into retail giants, wholesale distributors, and direct-to-consumer channels. This extensive reach ensures its products find their way into countless homes and celebrations. Yet, Hershey does not rest on the laurels of its renowned brand; it continually evolves by expanding its portfolio, including acquisitions like Amplify Snack Brands, to diversify into the snacking industry. This strategic blend of tradition and innovation enables Hershey to not only sustain its celebrated status but also to sweeten its financial performance year after year.

View HSY Analysis

HSY Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

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CH		Nestle SA SIX:NESN	Add
US		Mondelez International Inc NASDAQ:MDLZ	Add
ZA	T	Tiger Brands Ltd JSE:TBS	Add
FR		Danone SA PAR:BN	Add
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ZA	A	Avi Ltd JSE:AVI	Add
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CN		Foshan Haitian Flavouring and Food Co Ltd SSE:603288	Add

JP	G	Goyo Foods Industry Co Ltd TSE:2230	Select
CH		Nestle SA SIX:NESN	Select
US		Mondelez International Inc NASDAQ:MDLZ	Select
ZA	T	Tiger Brands Ltd JSE:TBS	Select
FR		Danone SA PAR:BN	Select
MY	O	Ocb Bhd KLSE:OCB	Select
US		Kraft Heinz Co NASDAQ:KHC	Select
ZA	A	Avi Ltd JSE:AVI	Select
US		General Mills Inc NYSE:GIS	Select
CN		Foshan Haitian Flavouring and Food Co Ltd SSE:603288	Select

JP	G	Goyo Foods Industry Co Ltd TSE:2230	Add
CH		Nestle SA SIX:NESN	Add
US		Mondelez International Inc NASDAQ:MDLZ	Add
ZA	T	Tiger Brands Ltd JSE:TBS	Add
FR		Danone SA PAR:BN	Add
MY	O	Ocb Bhd KLSE:OCB	Add
US		Kraft Heinz Co NASDAQ:KHC	Add
ZA	A	Avi Ltd JSE:AVI	Add
US		General Mills Inc NYSE:GIS	Add
CN		Foshan Haitian Flavouring and Food Co Ltd SSE:603288	Add

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HSY

vs

S&P 500

Stocks Performance
HSY vs S&P 500

Performance Gap
HSY vs S&P 500

Performance By Year
HSY vs S&P 500

Competitors Performance
Hershey Co vs Peers

Hershey Co
Glance View

Company

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HSY vs S&P 500

Stocks Performance HSY vs S&P 500

Performance Gap HSY vs S&P 500

Performance By Year HSY vs S&P 500

Competitors Performance Hershey Co vs Peers

Hershey Co Glance View

Company

Help

Tools

Stocks

HSY

vs

S&P 500

Stocks Performance
HSY vs S&P 500

Performance Gap
HSY vs S&P 500

Performance By Year
HSY vs S&P 500

Competitors Performance
Hershey Co vs Peers

Hershey Co
Glance View